What is Modelo 720?
In 2013, the Spanish government decides to tackle tax evasion. It then sets up a number of measures.
Aiming primarily at Spanish nationals, this reform also affects foreigners living and / or working in Spain with a heritage outside the Iberian Peninsula.
Modelo 720 is an informative but mandatory statement about foreign assets and assets.
The purpose of this approach is to have information on:
– bank accounts located abroad
– securities, rights, life insurance and investments managed or acquired abroad
– real estate and rights on real estate abroad
This completed form must be presented between January 1st and March 31st, only via internet (via the website Agencia Tributaria – Modelo 720 Declaración Informativa. Declaratión sobre bienes y derechos situados en el extranjero ).
Who should present the Modelo 720?
Any natural or legal person residing in Spain (more than 183 days a year), and only if the sum of its assets exceeds the sum of € 50,000 in one or more of the three categories.
The following years, it is asked to represent the Modelo 720 only in case of an increase of more than 20 000 € compared to the capital initially declared.
What are the risks in case of no-show?
Although this statement is intended only to inform, the Spanish government threatens to impose heavy penalties for non-compliance with this measure.
– € 5,000 for any incomplete, incorrect or false information, with a minimum of € 10,000 fine per declaration.
– 100 € per information, with a minimum of 1500 €, if the declaration was filed beyond the deadline.
– If the Hacienda realizes the absence of a declaration, the sanctions announced are extreme (for example, 150% of the value of the property, capital gains on any unjustified patrimony)
Many complaints have been filed to challenge these excessive and unfair sanctions, the European Commission would also be in contact with the Spanish authorities on this subject.
Nevertheless, you are strongly advised to make this statement in order to avoid any problem with Hacienda.