Beware Your Model 720 Deadline is Almost Over

MODEL 720 - BEWARE! THE DEADLINE FOR THE 2022 DECLARATION IS ALMOST OVER

Are you a tax resident in Spain with assets abroad? Have you checked if you have the obligation to present this declaration for the financial year 2022? Do not worry if you don’t have it clear, in this post we help you understand what this declaration is and guide you in your obligations as a fiscal resident in Spain.

Of course, if you are not sure, we can help and advise you with our incredible tax department so that you can fulfill all your obligations with the Tax Office.

When do I need to submit a 720 form?

All physical persons resident in Spain who own assets outside of the country with a total value of more than 50,000 euros on 31st December of the previous year must submit Form 720. This includes the following assets:

Bank accounts in financial entities.
Investments, Private pensions, life insurances.
Properties

Modelo 720 Declaration for Foreigners

You can find them a bit more specified in the following list:

Bank Accounts abroad.
Shares or participations in own funds or capital abroad.
If you own investments with any type of broker and is operating abroad.
Life insurances with companies abroad.
Properties in another country
Life or temporary annuities abroad.
Private pensions in any other country.

Fiscal residents in Spain are also obliged to declare any representatives, beneficiaries or people who have power of attorney over those assets.

If the sum total of any of the three groups mentioned before does not exceed 50,000 euros, you don’t have to declare these overseas assets.

When and how to submit the form 720 in 2022?

This declaration of your overseas assets must be submitted online, so you can only file the Form 720 electronically and not in person, with a digital certificate.

It must be submitted between 1st January and 31st March of the year following that for which the information must be reported. This means that your declaration of assets held outside of Spain in the year 2022 must be filed before the 31st March 2023.

Don’t forget your income tax form (model 100) !

Bear in mind that the 720-model information must be aligned with the income statement, as in the income tax you will declare all the incomes you have received during the year, and theses incomes (or part of them) could be generated by the assets declared in the 720 (capital gains of a property sale you owned, drawdowns of a private pension…).

Due to the complexity of the forms and the fines involved, you would need a fiscal adviser, to submit the form properly on your behalf, if you are entitled to it. Also, it would be advisable to have everything under the same umbrella, so that will help you to declare everything aligned.

Don’t hesitate to contact us to obtain further information!