MODEL 720 Spain: What is it and who has to submit it?

The first time when Spanish Residents with goods and rights abroad had to present Model 720 Spain was in 2012.

It is a statement unknown to many. But for others, this subject has generated a lot of discussion. It is the most controversial regulation known to Spain residents.

This statement is informative, but the penalties for not presenting it or presenting it with errors or omissions, may involve serious penalties.

Many complaints have been made against this statement.

The European Commission believes that this obligation may be contrary to European Union law; therefore, it has been proposed to start an infringement process against Spain.

While these complaints continue their course, we will have to continue to comply with the tax obligation and submit this informative statement.

Throughout this Article, we will dispel the fears that have arisen among the clients of the  Pérez Parras Economists & Lawyers Firm in Málaga and Nerja.

Residents in Spain need to submit Model 720

If you are a resident in Spain with goods abroad, you must submit Model 720 Spain.

The first questions to be answered are:

WHO MUST FILE IT AND WHAT IS REQUIRED TO SUBMIT IT?

To submit model 720 Spain you are:

  1. Individuals and legal entities resident in Spain,
  2. non-resident natural / legal persons with establishments in Spain.
  3. Entities within the art. 35.4 of the General Tax Act (heirlooms, communities of assets) that, in the following cases:
  • Are owners, co-owners, representatives, authorised or beneficiaries of accounts in financial entities located abroad, with average balances exceeding 50,000€
  • Hold securities, rights, insurance and income obtained abroad, when they jointly exceed 50,000€.

Exceptions: Pension plan, real estate and rights over immovable property located abroad, with their joint limit of 50,000€.

Model 720 is submitted online

The presentation of Model 720 Spain can only be made electronically

WHEN AND HOW SHOULD MODEL 720 Spain BE PRESENTED?

This informative statement can only be submitted electronically.

The deadline to submit it is from January 1st and until March 31st of the following year.

The Tax Agency authorised an assistance program with the purpose of facilitating the correct completion of this Model.

However, as we indicated at the beginning of this Article, any error may result in very serious penalties.

Finally, do not hesitate to consult our office of Economists & Lawyers in Malaga and Nerja . The firm advises you to count on our team of tax experts before taking any false steps in order to avoid financial penalties.