sgm abogados Modelo 720 - what assets do i need to declare by March 31st 2026

Modelo 720 – SGM Deadline Guide

The March 31 Deadline for Declaring Foreign Assets

For many foreign residents living in Spain, tax obligations can be confusing—especially when it comes to declaring assets held outside the country. One of the most important obligations is the Modelo 720, an informative declaration that Spanish tax residents must submit if they own certain assets abroad.

Each year, the deadline for filing this declaration is 31 March, and failing to comply can lead to penalties and tax complications.

Below we explain who must file it, what assets must be declared, and when you need to submit it.

What is Modelo 720?

Modelo 720 is an informative tax declaration used by the Spanish Tax Agency to monitor assets and rights located outside Spain.

It is not a tax itself. Instead, it is a reporting obligation that informs the Spanish authorities about foreign assets owned by Spanish tax residents.

The model was introduced as part of Spain’s efforts to combat tax evasion and increase transparency regarding overseas wealth.

Who Must File Modelo 720?

You must file Modelo 720 if you are a tax resident in Spain and you own assets abroad that exceed certain thresholds.

In general, you are considered a Spanish tax resident if:

You spend more than 183 days per year in Spain
Your main economic interests are located in Spain
Your spouse or family normally lives in Spain

If you meet the tax residency criteria and own qualifying assets abroad, you may have to submit this declaration.

The €50,000 Threshold

The obligation to file Modelo 720 arises when the value of assets in a particular category exceeds €50,000.

Importantly, the threshold applies per category, not per asset.

This means that even if you own only part of an asset (for example, a jointly owned property or bank account), you may still need to declare it if the total value of the asset exceeds €50,000.

What Assets Must Be Declared?

Foreign assets that may need to be reported fall into three main groups:

1. Bank Accounts Abroad

This includes:

Current accounts
Savings accounts
Deposit accounts
Accounts where you are the holder, authorised user or beneficiary

If the total balance of these accounts exceeds €50,000, they must be declared.

2. Investments and Financial Assets

This category includes:

Shares in foreign companies
Investment funds
Life insurance policies
Financial securities or bonds
Any income or financial rights held abroad

These must also be declared if their total value exceeds €50,000.

3. Real Estate Located Abroad

Properties owned outside Spain must also be reported if their acquisition value exceeds €50,000.

This includes:

Houses or apartments abroad
Land
Property rights over foreign real estate

When is the Deadline?

The filing period for Modelo 720 runs from 1 January to 31 March each year.

The declaration must report assets held on 31 December of the previous year.

For example:

Assets owned on 31 December 2025 must be declared between 1 January and 31 March 2026.

The form must be submitted online through the Spanish Tax Agency’s website.

Do You Need to File Every Year?

Not necessarily.

If you have already submitted Modelo 720 in previous years, you generally only need to file again if:

The value of the declared assets increases by more than €20,000, or
You acquire new foreign assets exceeding the reporting threshold, or
You close accounts, sell assets, or stop being the holder or beneficiary.

What Happens if You Do Not File It?

Failure to submit Modelo 720 can lead to financial penalties.

Although the sanction regime was modified after a ruling by the Court of Justice of the European Union, penalties still exist for late, incorrect or missing declarations.

In some cases, fines can reach thousands of euros depending on the seriousness of the omission.