We answer the following questions: Who is required to submit the model 720? How/where is presented the model 720? When the Model 720 has to be presented? What exactly should be declared in the model 720? Are there any penalties?

1. Who is required to submit the model 720?

Individuals and entities resident in Spain, as well as permanent establishments in Spain of non-resident individuals and entities.

2. How/where is presented the model 720?

The presentation of the declaration must be made electronically through the Internet.

3. When the Model 720 has to be presented?

In general terms, it should be filed between the 01 January and 31 March of the year following that to which the information relates to. Therefore, the Model 720 corresponding to year 2013 will have to be filed between 1 January and 31 March 2014.

4. What exactly should be declared in the model 720?

The reporting obligations are concentrated in three different categories:

  1. Accounts in financial institutions located abroad.
  2. Securities, rights, insurance and annuities deposited, managed or obtained abroad.
  3. Real State and rights therein located abroad.

In case that the sum of the elements of any of these groups does not exceed 50,000 euros, the elements of that group would not need to be declared. If any of these limits were exceeded, all elements of the group must be reported. Presentation of the model 720 in subsequent years will only be mandatory when any joint balances at December 31 or the average balance had experienced an increase of over 20,000 euros in respect of which determined the presentation of the last statement. There are some exceptions defined by the law for the assets registered in the accountancy.

5. Are there any penalties?

The taxpayers that fail to declare their assets, accounts or any other rights as above explained through Model 720 will be subject to a penalty of not less than 10,000 euros. In case of a late filing, the penalty shall amount to a minimum of 1,500 euros. In addition, the late filing of this model might also have significant implications in the corresponding Personal Income Tax or Corporate Income Tax.

Amalia Gracia
Abogada / asesor fiscal / taxadvisor
Colaboradora de Emede y Asociados Asesores Tributarios, SLP


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