The Modelo 720 is being amended, not abolished. If you live in Spain and own assets abroad you might have to file the 720 tax information form (called the Modelo 720 in Spanish) before the end of March.
If you live in Spain and own assets of 50„000€ or more (per asset class) abroad you need to file the Spanish tax form / Modelo 720 before the end of March if this 2021 was your first year in Spain, or if you have never filed it before, or if your assets abroad have increased by 20,000€ or more.
So, for example, if you moved to Spain in 2021 but retained a house worth more than 50,000€ back home, you have to submit the Modelo 720 before the end of the month. The same applies if you have any asset class like cash or financial securities (but not crypto currencies for now) worth 50,000€ or more.
Introduced back in 2012, and effective in 2013, the Modelo 720 was supposed to clamp down on Spanish fraud but in reality just shackled expats with a risk of massive tax penalties for owning legitimate wealth abroad. It has turned out to be ineffective against fraud, a nightmare of expats, and damaging to Spain.
Almost a decade after it was introduced, many expats in Spain still don’t know about the Modelo 720 and the risks they run with non-compliance. Others might have heard that the European Court of Justice recently declared aspects of the Modelo 720 illegal, and figure they no longer need to file it, but that’s not the case.
The ECJ ruled that the penalties for not complying in full with the Modelo 720 were excessive, but you still need to present it. The Spanish government will introduce lower penalties that satisfy the ECJ, though nobody knows when.
So this is just a reminder to file your Modelo 720 tax information declaration on time before the end of March. If you have fallen foul of the law, or are unsure if you need to declare, seek specialist advice.
Learn more about the Spanish tax information declaration Modelo 720 form.