SPRING is on the way and so you MUST check if you are obliged to file a 720 Declaration by the end of March to avoid getting stung with a hefty and an utterly avoidable fine by the Spanish Tax authorities.
The Spanish tax form 720 (Modelo 720) is a declaration of overseas assets from a Spanish perspective.
The Spanish law requires you to provide information about offshore accounts, offshore investments, and real estate located abroad.
If you have all your assets in Spain, then you do not have to file this tax return.
Likewise, if you are not a Spanish Tax Resident, you also don’t have to submit this form.
In the same sense, should you have been sent to Spain for work and are under the application of the Special Income Tax Regime for seconded employees (otherwise known as the Beckham Law), you also do not have to submit this tax return.
If you own assets abroad and you are a Spanish Tax Resident, you should check whether you are obliged to submit this tax return.
The answer will depend on the composition and the value of your foreign assets. The following must be declared:
- Bank accounts abroad and financial institutions opened, where the total balance of all the accounts exceeds €50.000.
- Securities, collective investment schemes, life insurances and annuities, that are held abroad and exceed €50.000.
- Real estate and interests in real estate with a purchase value that exceeds €50.000.
Form 720 must be submitted on-line from January 1 to March 31 of every year.
It worth noting that the fine and sanctions imposed for failing to submit this 720 tax form are currently under investigation by the European Commission owing to their severity.
Penalties imposed for late or incomplete filing and or non-submission of the 720 declaration could result penalties that usually range at €5.000 per asset, with a minimum penalty of €10.000.
To avoid any possible errors, we recommend you find help from a professional tax adviser.
If you are concerned that you need to file a 720 declaration please contact us immediately so that we can ensure that the declaration is made correctly and on time.
If you need legal assistance in English please contact Pepe Oltra or Martin Hayes directly.
SWAN Partners C/ Pizarro, nº 1, 4º-15ª. 46004 Valencia (Spain) + 34 96 334 89 83