WHAT IS FORM 720?
The Form 720 is an informative tax declaration that reports to the Spanish Tax Office about all those assets and rights that you have, or you manage abroad, as an intensification of actions in the prevention and fight against fraud.
The declaration includes three blocks of information to be reported:
- Accounts in financial entities located abroad.
- Rights, shares, participations in Collective Investment Institutions, insurances and income deposited, managed or obtained abroad.
- Real estate and rights on real estate located abroad.
WHO IS REQUIRED TO DECLARE?
Individuals and legal entities residents in Spanish territory, non-resident persons or entities with permanent establishments in the said territory and the entities referred to in article 35.4 of the General Tax Law.
Declarations will have to be submitted if:
- The balance of the accounts at December 31st and average balance of the last quarter of the year jointly, exceed 50,000 €.
- In case of rights, shares and participations in Collective Investment Institutions, insurance and rents, when the balance at December 31st of the fund, the rescue value of the insurance and the capitalization value of the rents exceed, jointly € 50,000
- When the valuation at December 31st of the real estate or rights over them exceed, jointly € 50,000.
IF I ALREADY PRESENTED A DECLARATION IN PREVIOUS YEARS, SHOULD I PRESENT IT AGAIN?
Once the first Form 720 is submitted, the individual will have the obligation of submitting this form during the following years if:
- The value of any of the three categories of information has an increase of over €20,000 from the last time the Form 720 was submitted. This is the quick answer — for a more precise answer, please see the tax office’s website.
- If the ownership of any item included in each category has been relinquished.
WHEN IS THE DEADLINE TO PRESENT IT?
The Form 720 should be electronically submitted before April 2nd 2018.