Since 2013, Spanish tax residents with assets overseas valued in excess of €50,000 are obliged to submit the Form 720 to the tax office annually. There are serious fines of €5,000 for each piece of missing or inaccurate information, with a minimum fine of €10,000. Different penalties are payable for late submission.
First of all, it is important to point out that this only applies to RESIDENTS in Spain. If you spend less than 6 months in a natural year in Spain and you are paying your taxes in another country, this does not affect to you.
Now, and considering that you are resident in Spain, let’s make sure if you really meet the criteria to have the obligation to submit this form:
You hold assets ABROAD that exceed €50.000,00 in value in any of these the types:
- Bank accounts
- Investments, such as stocks and shares, rights, etc.
- Real estate and rights on real estate located abroad.
If you have more than €50.000 Euros spread across the 3 listed asset types, but lower that 50.000 in any single asset type, you DO NOT need to submit the form 720.
If you are one of the “lucky ones” who needs to submit the form, don’t worry, it’s not the end of the world! This is supposed to be just an informative declaration and you don’t need to pay any tax on these assets here in Spain. However, you have to be aware that the Tax Office will check whether your wealth matches with the tax returns that you have been declaring every year, and an investigation might be carried out to determine if you have been declaring all your income during the last 4 years.
I don’t want so sound alarmist, but fines are huge for those who fail to disclose their assets, so we advise you to contact a professional, who can help you with this important task. It goes without saying that at Bravo Legal, we would be very happy to deal with this for you, so please feel free to e-mail us and we will provide you with more information about our fees, etc. without any commitment.