(Edited: March 2019)
Important: Deadline for submitting this tax form is 1st April 2019.
Throught this tax form, Spanish tax residents (expats or not) have to provide to the Spanish tax authorities information about offshore accounts, offshore investments, and real estate located abroad.
This tax form does not imply additional taxation (it´s an informative form).
What information must be included in this form?
There´s three group or blocks; you must send this tax form if you are a resident who has assets outside of Spain that total over 50,000€ within any one group:
- Offshore accounts in financial institutions, with a total balance (sum of all accounts) higher than €50,000, as individual who had had the status of owner, holder, representative, authorized recipient, beneficiary or proxy holder, …
- Values, Rights (portfolio investments), life or disability insurances and annuity or temporal revenues, deposited, managed or obtained abroad, with a total balance (sum of all assets of the group) higher than €50,000.
- Real estate or Rights on real estate located abroad, with total values (sum of all assets of the group) higher than €50,000.
It´s indiferent the number of co-owners. If any of the mentioned elements is higher than € 50,000, must be included in the form.
Who needs to complete this tax form this year?
If you completed the 720 last year and your circumstances have not changed then there is no need to complete this form again.
You should complete this form this year if:
- You are a new resident in Spain and this is your first tax year.
- You completed the 720 form on a previous year, but your assets have increased by 20,000€ or more of total assets in any of the groups previously declared or this year have reached more than 50,000€ in a previously undeclared category.
What happens if I don’t file?
Even though it´s an informative declaration, taxpayers that fail to declare their assets will be subjected to a fine of not less than 10.000 euros for each asset type. These fines have been contested by spanish lawyers and law firms. Even the EU is checking currently them (we will talk about it in next posts!) Contact us!
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