March 23, 2016 at 4:47 pm #190094AnirudhParticipant
I have recently moved to Spain, that is on 13th July, 2015.
I was recently reminded by my employer a that I need to fill up form 720 to declare my assets abroad.
While going through the rules it understood that the form only needs to be filled if
- The total value of assets held abroad exceed 50,000 Euros and
- I am a tax resident in Spain.
My bank accounts, properties and investments held abroad do not exceed 50,000 Euros and as I was in Spain for the tax year 2015 for only 181 days.
Do I still need to submit the form 720?
March 30, 2016 at 1:01 pm #190136Mark StücklinKeymaster
It’s not the total value of assets held abroad that counts, it’s the total value in each category, for example “cash”. So if you have cash in one or more bank accounts outside Spain with a combined total of €50,000, then you have to declare all those bank accounts. However, if the combined total came to €49,000, you wouldn’t have to declare any of them or your cash holdings abroad. Likewise with property – another category. If you own real estate outside of Spain worth more than €50,000 then you have to declare all your real estate holdings abroad. And so on for each category – you only have to declare the assets in each category if they are worth €50,000 or more.
If a Spanish resident has assets outside of Spain, but they don’t add up to €50,000 in any category, then no need to file a worldwide asset declaration (Modelos 720) in Spain. If you combined assets are worth less than €50,000 then it follows there is no need to declare. I hope that helps.
April 2, 2016 at 6:14 pm #190174Keith CottrellParticipant
Hi, agree with Mark re thresholds etc. but the key point for you is if you only spent 181 days (i.e. less than 183 nights) of the 2015 tax year in Spain you are not classed as a Spanish tax resident and as such form 720 is not relevant to you.
April 28, 2016 at 10:38 pm #190641PttParticipant
I think it naive to suggest that form 720 is not relevant to you. If you are No Residente you indeed need to file annually as No Residente and pay the usually very small annual tax that is required. You should do this for your own protection because otherwise you might have diffculty in proving at some later date -maybe a year in which you by accident may have overstayed and it were suggested that you may have been doing more often. Not least in case if you die in Spain and you have a property in the UK that Hacienda see juicy for CGT and Death Duties (Inheritence Tax) If you file through a professional providing flight tickets stubs its an extra line of protection if you are transparent .
April 29, 2016 at 9:43 pm #190657PttParticipant
I am unable to edit today post 190641. It is Form 210 that is relevant to Non resident property owners and indeed 720 is not relevant. Apologies
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