What is the Spanish Modelo 720 Overseas Asset Declaration?

The Spanish Model 720 Overseas Asset Declaration is a legal obligation for Spanish residents to declare their assets held outside of Spain. This article aims to provide an overview of the Spanish Model 720 Overseas Asset Declaration, including what it is, who is required to file, and the consequences of not filing.

Overview of the Spanish Model 720 Overseas Asset Declaration:

The Spanish Model 720 Overseas Asset Declaration is a declaration of assets that are held outside of Spain by Spanish residents. The declaration is a legal obligation and failure to comply can result in significant penalties. The declaration must be filed electronically by March 31st of each year and is required for all individuals who are considered tax residents in Spain.

Who is Required to File the Spanish Model 720 Overseas Asset Declaration?

All individuals who are considered tax residents in Spain are required to file the Spanish Model 720 Overseas Asset Declaration. This includes individuals who spend more than 183 days in Spain in a calendar year or individuals who have their primary residence in Spain. In addition, the declaration is required for individuals who hold assets outside of Spain that exceed €50,000 in any of the following categories:

1. Bank accounts and deposits
2. Securities, shares and other financial assets
3. Real estate and property
4. Insurance policies

Consequences of Not Filing the Spanish Model 720 Overseas Asset Declaration:

Failure to comply with the Spanish Model 720 Overseas Asset Declaration can result in significant penalties. Penalties for not filing or filing incorrectly can range from €1,500 per undeclared item to a minimum penalty of €10,000. In addition, the Spanish tax authorities may also initiate proceedings for tax fraud or tax evasion, which can result in fines, interest, and even criminal prosecution.

Table of Spanish Model 720 Asset Categories:

The following table provides an overview of the different asset categories that are subject to the Spanish Model 720 Overseas Asset Declaration:

In conclusion, the Spanish Model 720 Overseas Asset Declaration is a legal obligation for Spanish residents to declare their assets held outside of Spain. Failure to comply with the declaration can result in significant penalties and even criminal prosecution. It is important for all individuals who are considered tax residents in Spain to be aware of the declaration and to file it by the March 31st deadline.