Model 720: Spanish Tax Declaration for Foreign Assets Guide

Description

What is it?

Model 720 is an annual informative declaration form required by the Spanish Tax Agency (Hacienda) for residents of Spain. It mandates that residents must declare any foreign assets exceeding €50,000. These assets include bank accounts, securities, rights, insurance, and income.

Who needs it?

Any individual residing in Spain who owns foreign assets with a total value of more than €50,000 must submit the Model 720 form. This includes foreign bank accounts, real estate, and securities.

Procedure

1. Collect Information: Gather details about your foreign assets, including account numbers, addresses, and valuations.
2. Secure Digital Certificate: Obtain a digital certificate from the Spanish National Mint (FNMT) for online submissions.
3. Access the AEAT Portal: Visit the Agencia Tributaria’s official portal .
4. Fill Out Form 720: Complete the Modelo 720 form using the comprehensive guidelines provided on the AEAT site.
   • Divide assets into three categories: bank accounts, securities and investments, and real estate.
5. Submit the Form: Once filled, submit the form electronically before the deadline of March 31st each year.
6. Confirmation: Keep the confirmation receipt for your records.

Required Documents

• Bank Statements: Documentation showing balances as of December 31st for all foreign accounts.
• Property Valuation: Legal documents detailing your ownership and the value of real estate.
• Investment Proof: Documents related to securities, insurance policies, and other investments showing their value.

Providers that can do it for you

Additional details

• Fines for Delay: Historically, Spain imposed heavy fines for late or incorrect submissions, but recent changes per the European Court of Justice’s ruling have made these sanctions less severe.
• Annual Requirements: The declaration is only mandatory in subsequent years if the total value of any category increases by more than €20,000 compared to the prior declaration.
• Digital Nomads: Those holding Spanish digital nomad visas and residing in Spain are also subject to Model 720 if their foreign assets meet the threshold.

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