Modelo 720 - the tax authorities want these details .....
Taxes are always a tiresome topic. Even in Spain. And even foreigners who live here or own a property cannot avoid this issue. Especially because the central government in Madrid has obliged all foreign tax residents to disclose all their foreign assets since 2013. This year, the deadline for this expires on March 31, and the necessary information must be submitted using the required form no. 720. The problem is that foreigners are often unaware of this tax obligation, which is largely without exception in Europe. And are subsequently fined hefty fines for this.
Who has to disclose their foreign assets to the tax authorities?
In principle, the obligation to provide information applies to every Spaniard who has private assets of more than 50,000 euros. However, this includes all foreign tax residents who themselves or their spouse/children stay in Spain for more than 183 days for private or business reasons.
What exactly must be stated?
The Spanish tax office requires access to all foreign bank accounts, details of property ownership and other assets such as shares or investment funds.
Do you have to submit Form 720 again every year?
Yes. If the foreign assets disclosed in the previous tax year have not changed, there is no obligation to provide information again. If new assets were acquired or old assets sold in the previous year, the form must be submitted again. The same applies in the case of assets (shares, funds, etc.) whose value has increased by more than 20 percent in the past year.
What happens if foreign assets are not disclosed?
Failure to file Form 720 or providing incorrect data is punishable by a fine of 5,000 each.
Whoever conceals an asset in the application must pay a fine of 10,000 euros.
Who can help me with the submission of Form 720?
Foreign tax residents should always instruct a tax advisor or experienced lawyer.
