Modelo 720 Spanish tax information declaration form (Worldwide asset declaration)
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What is the Modelo 720 Spanish tax information form (Worldwide Asset Declaration form)?
Spanish name: Modelo 720. Declaración Informativa. Declaración sobre bienes y derechos situados en el extranjero.
You have to report assets of 50,000€ or more in three reporting categories or asset classes.
The reporting categories are: Cash, financial securities of all kinds, and property. Assets held in trusts are included.
You only have to file the Modelo 720 if you have assets of 50,000€ or more in any one category. So, for example, if you have 40,000€ in cash, 40,000€ in financial securities, and a parking place worth 40,000€, meaning total assets abroad worth 120,000€, you do not need to report. However, if you have just cash to the tune of 50,000€, or a property worth 50,000€ or more, you do need to file the Modelo 720 with the Spanish tax authorities.
You have to report if you are the owner, a beneficiary, a power of attorney, or if you have the authority to dispose of assets that meet the reporting requirements explained above.
The deadline for presenting the Modelo 720 is the 31st of March each year for assets owned the previous year.
You have to declare asset values using the Spanish wealth tax (patrimonio) rules as at the end of each calendar year. So you declare in March for the assets you held on the 31st of December the previous year. You may also have to declare the average value of the assets in the last quarter of the previous year.
After your first declaration, you only have to repeat the declaration in subsequent years if the value of any category increased by 20,000€ or more, but it is a good idea to file a 720 form every year even if that is not the case.
You may face fines and penalties for late, incorrect or incomplete reporting, or if you don’t report at all.
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