We hereby inform you that the deadline for filing the Form 720 (declaration of assets abroad) for Tax Residents in Spain is 31 March 2022, in relation to the 2021 tax year.

 

All individuals resident for tax purposes in Spain who are holders of any type of property or rights abroad are obliged to file this information return if they are in any of the situations summarised below.

 

The information to be provided revolves around 3 aspects:

 

  1. Obligation to report accounts held with financial institutions located abroad. The information to be provided is: the bank account number, the name of the bank, the address of the branch, the date the bank account was opened, the balance as at 31 December and the average balance during the last quarter of the year and the percentage of ownership.

 

  1. Reporting obligation on securities, rights, insurance and income deposited, managed or obtained abroad. The information to be provided is: policy/contract number, inception date of the policy/contract, balance as at 31 December 2021, in case of shares/units, the number of own shares and value of each share.

 

III. Obligation to report on immovable property and rights over immovable property located abroad. The information to be provided is: location, date of purchase, acquisition value, type of property right and percentage of ownership.

 

There is a single form for reporting three different obligations; each of the three blocks of assets constitutes a different reporting obligation, but the three reporting obligations are articulated through the same declaration form.

 

In this way, the three reporting obligations would be met by completing Form 720, which would include all the assets and rights for which there is an obligation to report.

 

The obligation to report is per block, not per asset or right (for example, if the sum of the balances of three bank accounts exceeds €50,000.00).

 

There is no obligation to report when the value of the assets or rights does not exceed €50,000 for each type of asset or right.

 

Law 7/2012 of 29 October establishes that persons who filed form 720 in previous years must file it again for the financial year 2021 ONLY in the following situations:

 

1.- When any of the sets of three different blocks of assets (accounts/investments/property) declared in the previous Form 720 have experienced an increase of more than 20,000.00 euros with respect to the values declared in the last form; and/or

 

2.- When the ownership of the assets or rights previously declared has changed during the financial year.

 

In addition, this model is currently in the news, as the Court of Justice of the European Union has ruled that certain aspects of it are contrary to European Union law. In this regard, the following measures have been agreed, pending publication in the Official State Gazette (in Spain) in order for them to become fully effective:

 

  • Regarding the obligation to report assets abroad, repeal the existing specific sanctioning regime to bring it into line with tax, budgetary and fiscal regulations.

 

  • Establish the obligation to report on virtual currencies located abroad of which the taxpayer is the holder, or in respect of which he/she is the beneficiary or authorised or otherwise has the power of disposal, held by persons or entities that provide services to safeguard private cryptographic keys on behalf of third parties, to hold, store and transfer virtual currencies.

 

  • Delete everything relating to the non-applicability of statutes of limitation for failure to submit a declaration of assets and rights abroad.

 

The approval of these amendments does not imply the elimination of the obligation to file Form 720 in cases where the taxpayer is obliged to file it.

 

If you are resident in Spain and have assets abroad, do not hesitate to contact us.