Many of our clients, especially foreigners, wonder when they should file the famous Model 720.
To temporally contextualize this tax form from the Spanish Tax Agency, it’s relatively modern as it was introduced in 2013. It’s known as the “Information Return on Assets and Rights Located Abroad.”
It’s essential to be aware that this tax form carries high penalties for non-filing or late filing.
Regarding its purpose, it aims to prevent capital fraud, and the filing deadline is three months, from January 1 to March 31.
As for who is required to file Model 720, it includes “any person who is the account holder, authorized, representative, beneficiary, or has disposal power over accounts located abroad.” In addition, according to Law 58/2003, Art. 35.4, “Individual or legal entity must file Model 720 when the total amount of their assets located outside of Spain exceeds €50,000.”
The total amount of assets located outside of Spain is the sum of these three categories:
- Bank account in a foreign bank.
- Rights, securities, income, or insurance in foreign entities.
- Properties located outside the Spanish territory.
It’s important to know that once you have filed Model 720, you do not need to file it again unless:
- You close a bank account.
- The value of your assets increases by more than €20,000.
Regarding the filing of Model 720, it can be done electronically with a digital certificate.
If you need help or advice on this matter to ensure the correct filing, please remember that we are at your complete disposal for assistance.
