Spain approves amended fines for incomplete Modelo 720 foreign assets tax form

The form applies to those people who own assets in different countries that are over a certain value

SUR

Friday, 25 February 2022 | Updated 27/02/2022 07:15h.

Spanish MPs have approved amended rules for the Modelo 720, the infamous form that those living in Spain who have assets - such as property, bank balances or shares - in other countries over a certain value must fill in.

In January, the top European court ruled that the system of fines and penalties set by the Spanish tax office for not doing the form or getting it wrong was far too harsh and went against EU freedom of movement rules.

The Spanish government has now moved quickly to amend the system to be much less punitive. Now the fine for non-completion will be in line with other tax fines and the duty to declare assets will expire - or prescribe - after four tax years, in line with other tax rules.

Previously, the value of a non-declared foreign asset could be seized by Hacienda even after many years.

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