Model 721 - Reporting Overseas Assets for Spanish Residents

Description

What is it?

Model 721 is a mandatory declaration form in Spain for residents to report their overseas assets to the Spanish tax authorities. The purpose of the form is to prevent tax evasion by providing detailed information about foreign accounts, securities, and real estate. Compliance with Model 721 requirements is crucial to avoid hefty fines and penalties.

Who needs it?

The ideal customer for this service includes any Spanish resident or entity with foreign assets exceeding certain thresholds, including expatriates, foreign investors, and multinational businesses. Individuals who have recently moved to Spain and have retained significant investments abroad also need to comply with Model 721 reporting requirements.

Procedure

1. Gather detailed information on your foreign assets, including bank accounts, securities, and properties.
2. Verify if your foreign assets meet the reporting thresholds defined by Spanish tax authorities.
3. Download the Model 721 form from the official Spanish tax agency website.
4. Complete the form with accurate information about your foreign assets.
5. Submit the form online through the Spanish tax agency’s electronic office within the specified deadline.
6. Retain a copy of the submitted form and any confirmation receipts for your records.

Required documents

• Bank Statements - Obtain from your foreign banks
• Securities Reports - Provided by your brokerage or financial advisor
• Property Deeds - Get copies from the respective country’s property registry
• Tax Identification Number (NIE/NIF) - Issued by Spanish authorities
• Proof of Asset Valuation - Documentation showing the value of your assets

Providers that can do it for you

Additional details

• Consistent failure to submit Model 721 can result in severe penalties, including fines and additional tax liabilities.
• The form must be submitted within the first quarter of each calendar year.
• Even small errors in the form can lead to significant issues, so ensure all information is accurate.
• Seek professional advice if you have complex asset structures or are unsure about the reporting thresholds.

Related Posts

• Model 720: Spanish Tax Declaration for Foreign Assets Guide
• Model 151 Guide: Foreign Asset Declaration for Beckham Law Users
• Understanding Spain’s Model 210 Non-Resident Tax Form
• S-1 Declaration: How to Declare Money Moved to Spain
• Guide to Model 347: Annual Spanish Tax Form for Third Parties