Are you a Spanish tax resident? It's time to submit Modelo 720

Penalties for failing to submit the Modelo 720 can be extremely high, which has led to criticism due to their disproportionate nature

Pedro San Nicolás González

Malaga

Saturday, 8 February 2025, 07:55

Modelo 720 is an informative declaration that must be submitted by tax residents in Spain who own assets located abroad. Introduced in 2012, its primary aim is to fight tax fraud by increasing transparency and control over assets located outside the country. Both individuals and legal entities are required to submit this declaration, provided the value of the assets or rights exceeds 50,000 euros in any of the following three categories: bank accounts, financial investments (including insurances and any kind of shares/stocks), and real estate properties.

The deadline for submitting Modelo 720 is between 1 January and 31 March of the year following the one in which the assets are declared. It must be done electronically via the Tax Agency’s website.

Obligation and penalties

If you have submitted Modelo 720 in previous years you only have the obligation to submit it again if the value of any of the three asset blocks has increased by 20,000 euros.

Penalties for failing to submit the Modelo 720 can be extremely high, which has led to criticism due to their disproportionate nature. The regulations impose fines for both omission and incorrect declarations, with penalties that can exceed 100% of the undeclared value.

Legal objections

However, European courts have questioned some of the provisions of this model, as the penalties are seen as disproportionate in relation to the value of the assets.

In summary, Modelo 720 is a key tool in the fight against tax fraud in Spain, although both its implementation and penalties remain subjects of debate.

Since this is a declaratory model and only requires the submission of information without the payment of any taxes, it is highly recommended that you submit this declaration. You are obliged to do so before 31 March 2025.

Since 2024, Crypto currencies must also be declared under the new declarative form 721. Although it is a different form to Modelo 720, the instructions, requirements and deadlines are the same as form 720.

If you have Crypto currencies abroad over 50,000 euros in value as at 31 December, please note that they would also need to be declared before 31 March.

Contact Pedro San Nicolas Gonzalez a tax lawyer with My Lawyer in Spain by email on pedro@mylawyerinspain.com for assistance with Modelo 720 and other legal aspects.

More information:

My Lawyer in Spain

Urb. Pueblo Evita, Avenida de las Palmeras s/n Local 7,

29630 Benalmádena Costa (Malaga).

Phone: (+34) 951 20 30 94

Top 50

Esta funcionalidad es exclusiva para registrados.

Reporta un error en esta noticia