As a foreigner living in Spain, you have the dubious pleasure of having to declare all your assets abroad. Welcome to Spain! In this post, I’ll give you more information about this declaration that is known as modelo 720. If you think it’s ridiculous and unjust I’m totally in agreement. However, unfortunately, there is no way around it.
Since I received so many requests about this form and how to fill it in, I have asked my trusted accountant if I can forward requests to him directly, in that way you will get professional advice and help (at a reasonable fee) for this complicated and hugely annoying declaration requirement.
Click here to fill in the form if you want to get in touch with my tax lawyer/accountant. Unfortunately, I am not qualified to assist myself due to the inherent complexities of each individual’s financial setup, so the best idea is to put you in touch with the people I trust myself for submitting my own yearly model 720.
If you want to learn more about model 720 before trusting anyone else with you obligations, please continue reading. My advice is to read as much as you can on your financial and tax matters, but ultimately, given the risks involved, it’s better to pay for professionals to handle such stuff.
Spanish tax resident individuals are obliged to report (720 Form) the following assets and rights (including any investments) located outside of Spain to the Tax Authorities:
- Accounts in which the individual is the titleholder, or in which he is representative, authorized person or beneficiary, or in which he has disposal powers.
- Securities, rights, insurance and life or temporary annuities.
- Real estate or rights on real estate.
There will be no reporting obligation for those assets or rights which value (considered in aggregate for each group of assets listed above) is lower than Euros 50,000. The deadline for filing the 720 Form is from 1 January to 31 March of the year following that for which the information must be reported.
In subsequent years you will need to re-submit the modelo 720 if any of the accounts are closed or if the value in any of these three categories increases by 20,000 Euro or more.
This is a form that is quite tricky to fill in, especially for foreigners, and the fines are ridiculously high in the case of mistakes, late submissions or forgetting to submit it altogether. Hence it’s worth paying close attention to it and making sure you do it right, especially if it’s the first year you’re submitting it. I highly suggest you approach a reputable tax consultant to help you out. Note that many accountants, gestores and tax consultants don’t provide help on this form, as they have relatively low demand for it compared to the other services they provide. Expect to pay between 400 and 500 Euro per declaration if you hire a tax consultant (contact me if you need recommendations in Barcelona) to fill it in for you. You will still need to provide all the documents and details to the consultant, what he will be able to do is guide you on what data is needed and actually fill in and submit the form for you.
Many expats simply do not declare the modelo 720, and many are not even aware of it. Unfortunately, they are exposing themselves to serious trouble and harsh penalties. We have seen several cases of financial ruin in the past years due to failure to declare this form or declaring it with erroneous data. The penalties are so harsh that a Spanish consultancy company has denounced Spain to the European Court a few years ago. There are some indications that Hacienda has been softening its hand in terms of fines after the EU requested them to do so, but the case is ongoing.
The EU has in fact taken action against Spain and ordered it to modify the modelo 720’s penalties, although they have also deemed it lawful for Spain to request this information about assets located outside its territories. Many consider this to be a law that goes against the freedom of movement of humans and capital within the EU, and thus a breach of human rights. It is expected that the modelo 720 will either be removed or heavily modified in the coming years to comply with the requests made by the EU. In the meantime, however, it is wise to keep on submitting the modelo 720 as usual if you are required to do so.
The decision of the European Commission to take the Model 720 before the Court of Justice of the European Union should suppose the suspension of all sanctioning procedures that are currently underway. “To force this decision, it is convenient that taxpayers who are in this situation ask the Treasury to agree on the suspension of the deadline to resolve,” according to a legal professional.
Rulings from the Court of Justice of the European Union will usually take effect retro-actively, so in this case that would be going to back to 2012 when the obligation to declare overseas assets on Modelo 720 came into effect. It is expected that a ruling that confirms that the fines are in fact discriminatory and in conflict with the fundamental freedoms in the EU, will open “the path of patrimonial responsibility of the legislative State” (so the possibility to file a claim against the Spanish State) for having approved a regulation that has been declared contrary to the European Union Law. For those who have already been subjected to fines and paid them and also for those who have contested, but lost their appeal.
If you would like to learn more about the modelo 720, refer to the FAQs here or here. There are many questions and answers and your doubts will probably be answered there. Below I have also listed a few common questions and answers that expats, in particular, have when filling in this form. They are not official Q & As, just cases I’ve heard about and how they’re dealt with (as far as I know).
So far the Spanish tax authority has issued fines to 5000 taxpayers since the inception of the modelo 720 in 2013, although the majority of these fines were issued in 2015 (4,321 fines). 71% of the fines were due to declarations that were made late.
In 2019 only 6 fines were issued. Courts such as those of Catalunya have recently revoked fines from the tax agency. In a recent case from May 2019, the tribunal ruled that since there is a ruling by the European Commission on the matter, the Spanish tax agency cannot continue fining people as it used to before, and thus revoked the fine for presenting the form 2 years later than it should have been done.
In all probability, the EU courts will make Spain remove the modelo 720 within the next two years.
Here’s an excerpt from an interview with the lawyer who took Spain to court (in Spanish):
No me cabe ninguna duda de que la Justicia de la UE terminará condenando a España y tumbando ese arma de destrucción masiva contra el fraude fiscal”, expone Alejandro del Campo, abogado del despacho DMS Consulting, que denunció el modelo 720 ante la Comisión Europea en febrero de 2013.
Su actuación provocó el inicio de un procedimiento de infracción contra España en noviembre de 2015, llevando a Bruselas a exigir a España la modificación de la normativa en un demoledor dictamen, emitido en febrero de 2017 y difundido en diciembre de 2018, cuando el letrado Esaú Alarcón logró aportarlo como prueba en un procedimiento ante la Audiencia Nacional. Ante la ausencia de medidas por parte de España, la CE anunció el pasado junio que recurría al TJUE. Mientras, los tribunales españoles vienen frenando buena parte de la aplicación del modelo 720 por defectos de forma. Ahora, el futuro del sistema de declaración de bienes en el extranjero queda en manos de los magistrados de la UE.
Question: Do you need to report money invested in crowdlending platforms like Mintos, Twino, Bondora etc?
Hacienda clarifies that you don’t need to do this. You only need to declare such loans if they are denominated by shares. For example, when you give loans on property crowdfunding platforms like Property Partner, you will be assigned shares pertaining to that loan, and in that case, you would have to declare those participations.
However, if the cash balance in your account on the platform is stored in an omnibus account like Lemon Way and it is directly linked to you, you then need to declare that cash balance as at end of year. The platform should be able to give you this information.
Source (Question 37)
Question: Should your spouse fill in the modelo 720 if the assets are in your name?
If you were married with the community of property regime, then both spouses have to declare the assets. If, say, a bank account is in the name of one of the spouses, that spouse will declare a 100% participation, while the other spouse will fill in the same bank account details (including the same total balance, not half of it), but note down a 50% participation.
Question: Should bank accounts with a balance of zero be declared?
Yes, you need to declare all accounts outside of Spain once the sum total is 50,000 euro or higher. Empty accounts will still have to be declared.
Question: Should you declare life assurance accounts held with banks?
Yes, provided that it’s an account where you automatically deposit money every month. These are mixed savings and life assurance accounts, so you declare them. If you’re just paying a monthly or yearly premium to an insurance company for a life assurance policy, then you don’t declare it.
Question: If there is a change of 20,000 euro or more in any category, do you declare all the items in that category or just the particular item that changed its value?
You only need to declare that particular asset that changed its value considerably. If the change was spread over all the items (very common if we’re talking about bank accounts or shares in public companies) then you declare all items.
Question: Should cryptocurrencies be declared?
As of 2021, you are obliged to declare crypto assets held outside of Spain. This could mean those assets held on exchanges, wallets, custody solutions, and even in the possession of third parties (e.g. friends, family, lawyers). The latter applies to those who don’t have their crypto stored anywhere in particular, but who have their private keys (which would serve to unlock the assets) held in secure storage outside of Spain.
Question: A resident in Spain is a partner of a non-resident society (first level) that in turn is a partner of other non-resident societies (second level) What obligations to inform does the resident have with respect to the non-resident organisations and the goods owned by said organisations?
The resident must declare his or her participation in the first non-resident company. The prior must be applied as long as the non-resident companies carry out an economic activity through the corresponding organisation of material resources and staff, that is, that they do not have an instrumental character whose purpose is merely the indirect control of the goods on behalf of the real owner.
Question: Do I need to declare the bank accounts of a foreign corporation in which I am a 100% shareholder?
Yes, since you would be considered the beneficial owner of the bank accounts, even though they are in the name of your company.
Question: Do you need to declare money I have in virtual bank accounts such as TransferWise, N26 or Revolut?
If the virtual account has all the details of a traditional bank account, you should declare it along with the rest of your bank accounts.
Question: Do you need to declare the balance of your PayPal account?
PayPal accounts don’t fit any of the category definitions that apply to the modelo 720 and are thus not included. However, unfortunately, Spanish Hacienda loves to leave grey areas in these matters and have people worry unnecessarily instead of explaining exactly what to include and what not.
In a question that was sent to Hacienda, they hinted that you might need to include PayPal accounts, by replying in the following manner:
Por su parte, el portal de “PayPal” define el servicio que presta del siguiente modo:
“PayPal permite a las empresas o consumidores que dispongan de correo electrónico enviar y recibir pagos en Internet de forma segura, cómoda y rentable. La red de PayPal se basa en la infraestructura financiera existente de cuentas bancarias y tarjetas de crédito para crear una solución global de pago en tiempo real. Le ofrecemos un servicio especialmente pensado para pequeñas empresas, vendedores por Internet, particulares y otros a los que no satisfacen los mecanismos de pago tradicionales.”
Finalmente, respecto de la declaración de la cuenta PayPal, podría entenderse, en su caso, que dicha cuenta debe tomarse en consideración a efectos del Impuesto sobre el Patrimonio, o de la obligación de declarar bienes situados en el extranjero.
In my view, if you have significant amounts of money in your PayPal account and use it as you might use a savings account at a bank, you might want to declare it just to be safe. Having said that, I don’t know how you would actually go about declaring it since PayPal does not give you any account number that you would need to put in on the modelo 720 form. So, in the end, you’re just left with doubts.
Question: How is the value of a foreign company determined, given that it is not quoted on any stock exchange and is hence a private company.
The valuation will be calculated with the rules established in the Spanish Law 19/1991 regarding Wealth Tax. Insofar as it is not a company with representative securities traded on organized markets or other specific features, it is necessary to refer to article 16 on other securities that represent the participation in equity of any type of entity.
“En el caso de que el balance no haya sido auditado o el informe de auditoría no resultase favorable, la valoración se realizará por el mayor valor de los tres siguientes: el valor nominal, el valor teórico resultante del último balance aprobado o el que resulte de capitalizar al tipo del 20 por 100 el promedio de los beneficios de los tres ejercicios sociales cerrados con anterioridad a la fecha del devengo del Impuesto”.
This article indicates that the valuation of this type of shares will be carried out at the theoretical value resulting from the last approved balance, provided that it has been submitted to review by auditors. If this is the case of the company, the valuation must be made in accordance with the last approved and audited balance sheet available. As an aside, note that for wealth tax purposes, you can use either the value of the company as at 31st December of the previous year, or the value of the company as determined by the latest published accounts, even if they were published after the 31/12, as it is deemed that the later accounts would be even more accurate as a valuation method. See this page (in Spanish) where this update is explained.
The theoretical value is obtained by dividing the net equity figure by the number of shares, by performing the following operation:
Theoretical value = Net equity / Number of shares in which the share capital is divided.
However, in case the last approved balance has not been audited, the valuation should be made for the greater value of the following three:
- The nominal value.
- The theoretical value resulting from the last approved balance.
- The result of capitalizing at a rate of 20% the average of the net profits of the three fiscal years closed prior to the date of accrual of the tax.
This is a simplified way of valuing a company, when compared to more complex methods used by investors, but it’s the one we need to use to calculate the value for the modelo 720 form.
Filling in the form yourself VS Hiring someone to do it
Be aware that lawyers and accountants can charge very random fees for helping out with this report. I’ve been given quotations ranging from €150 to €1500 and upwards, and that was sight unseen, not taking into consideration the complexity or lack of for each individual’s declaration. It was hard to find someone that I could trust and that wouldn’t fleece me with charges for what essentially is a simple model to fill in, especially for someone knowledgeable like an accountant or lawyer. If you’re looking for someone to help out with your declaration, contact me and I’ll be happy to put you in touch with my trusted accounting firm in Barcelona.
You could fill it in yourself too, but even though I know how to do so myself, I still prefer hiring a well-known company to do it for me. When you make a submission the form includes the name of the person or company submitting the form. My opinion is that Hacienda is more likely to go after foreign-sounding names who submit the form without any outside help, rather than if they see a form being submitted by a Spanish company.
Make no mistake, I feel that this declaration is a total violation of basic freedoms and is definitely contrary to European freedom of movement legislation, but until it stands, there is no option but to do our best to fill it in properly and thus avoid complications with Hacienda. Keep in mind that even if you get accused unjustly of filling it out wrongly, you will still need to spend a lot of time and hassle to go through the Spanish courts and depend on them to issue the final ruling. It’s better to do it right the first time around.
Note that this is just a summary of my research on the topic and my discussions with various tax consultants. It should not be taken as tax advice. When in doubt, you should always consult a trusted tax consultant to help you fill out this submission. The information could also be out-of-date as new laws and changes to existing legislation happens regularly.
Further reference
- REAF – More questions and answers (in Spanish)
- The latest updates from the company that took Spain to court in the EU
- Latest information about the case from December 2019
- Some example cases to show how ridiculous this can get
- More questions and answers about the declaration
- Latest FAQs from Hacienda
With reference to a Modelo 720 filed in 2018 (and not needed to be filed since) …
Q1. If the 2021 GBP/EUR exchange rate has created the increase of €20,000+ ie. property that has not changed but it’s original value has gone up now to over €20,000 only due to the 31Dec21 rate used for Modelo 720 (versus 2018), do we still need to file again?
I had read previously from CAB Spain: In subsequent years you are required to report the following changes: your assets have increased in value by €20,000 or more in any group previously declared. Note, this includes increases as a result in the change of exchange rate.
Q2. If the exchange rate has caused the increase in property to over €20,000 but that property is shared by two people so in fact it’s just over €10,000 each – do we need to declare?
Thanks in advance for any insight or sources of information to confirm or deny the above.
Hello! I’ve been following this article for a few years now; its been so helpful thank you so much!
And this time, could you or anyone please share the link of the BOE exchange rates that should be used for the filing for 2021? TIA!
Hi Jean,
I started working in Spain in October 2020. I have an apartment abroad, but I did not submit the modelo 720 in 2021 (because I did not even know I had to…). If I submit it now in 2022 can I get a fine?
Thanks a lot for your help!
It’s best to fill in the form to have my recommended tax advisors look into your case and decide on the best way forward.
There is no way to fill this form correctly, you will be always in risk of facing a huge fine even for empty accounts (that already happened)
Hopefully this was sentenced by EU as a violation of EU rights.
If you move your residency to Guipúzcoa (Vasque Country) you can reduce a lot the fine.
It is a totally ridiculous form in many ways. The good news is that after being scolded by the EU, the Spanish authorities have drastically reduced the number of fines issues in the last couple of years.
Hello Jean,
I bought a property in the USA, and my closing date for that property was during the first week of January 2021. Would I have had to declare that in the modelo 720 of this year or would that apply for next year´s model 720?
Thank you
Hi Samantha,
The submission for 2021 is based on the ownership of property/capital/shares outside of Spain on 31 December 2020. As the purchase was completed in January 2021, it is my understanding that you would need to declare the ownership on your Modelo 720 in 2022.
Regards,
Damian
Hello Jean,
I had two questions related to filling in fields for Modelo 720 and I was wondering if you can possibly help to clarify them.
1. My bank accounts are located in the United States and do not have IBAN or BIC codes, do you know what am I supposed to enter in the BIC field Modelo 720?
2. If my name is on the account that is shared between myself and my relative, but the entire account balance does not belong to me. What number am I supposed to enter in the percentage of participation option field? Modelo 720 does not accept 0 in this field.
Thank you!
Hi Jean,
This is the best summary of the modelo 720 that I’ve found! Answering questions that I’ve struggled to find answers for elsewhere.
Paul
Glad to be of help 🙂
Dear all,
Could you please advice me on the field ‘Origen del bien o derecho’ in the form 720? In 2018, I’ve acquired a cooperative share in the inheritance proceedings. That’s why in 2019 I filled out the 720 model for the first time choosing the option A (bien o derecho que se declara por primera vez o que se incorpora en el ejercicio de la declaracion) in the field ‘Origen del bien o derecho’. When filling the form 720 for 2020 I am not sure whether the same option A should be selected or if I should select option M – bien o derecho que ya ha sido declarado en ejercicios anterios.
Thank you very much,
Tereza
Hi,
I struggled with the same question.
In the “BOE” (official bulletin of the State of Spain) it is said that one should chose option “M” when there is a raise of 20.000 or more in the said category.
One is also obliged to declare when one discontinues a bank account, then one should chose option “C”
For me it is not clear if one should only declare the closed accounts or all accounts at the specific year (2020) .
I chose to declare the active accounts with option “M” although they don’t have a raise of more then 20.000 euros. Option A is not the right choice i think.
So, question comes down to: declare the active accounts with “M” or not declare them again.
The tax office could not give me a straight answer.
I think its better to declare too much then too little.
The biggest problem with the modelo 720 is that there are many things absolutely unclear and nobody can give you the right answer.
If you work with a competent tax consultant they will give you all the answers. I struggled a lot myself until I found my current tax lawyer. Contact me if you want me to put you in touch.
Cuando se trata de impuestos y España el mejor consejo es :
Run Forest , run!!
jajajaj
Muy cierto eso.
Hi Jean,
It seems that there is an official stance on cryptocurrencies now and that they should be included?
Thanks,
John
Hi John, can you link me to it?
Thank you for your article. Just one question: “if the cash balance in your account on the platform is stored in an omnibus account like Lemon Way and it is directly linked to you, you then need to declare that cash balance as at end of year.”, what do you mean by “it is directly linked to you”?
For example Mintos, but also others have an omnibus account (or at least, I think they do), but how can I know if it’s directly linked to me? Does it require extra steps from my end to open such account or should I find about it somewhere? Does it mean that I have some kind of IBAN or other coordinates that are unique to me (instead of a shared one with all other investors)?
Welcome. The latest advice I have is that it is prudent to share the details of such accounts. If you don’t have the IBAN you can share the investor account of the platform, for example Mintos.
Thanks for the information Jean. Very useful. You mention “In all probability, the EU courts will make Spain remove the modelo 720 within the next two years”. Are there any developments on this challenge that you are aware of, or is it still in the process?
Still in process unfortunately Damian.
You can use Google Translate on this article for more information on the latest: http://fiscalblog.es/?p=5968
I am a French expat under Beckham law: This year I am planning to quit my job in October and so I will lose Beckam status. If i stay in Spain till end of the year will have to submit form 720? And what If i leave Spain few days after I have quitted my job?
Hi, I am looking into the Beckham law myself, would you mind sharing the firm that helped you with the process ?
I have lived and worked in Spain since August 2019. I benefit from the Beckham law tax regime. Do I need to declare any assets and/or savings I have in the UK?
Under Beckham rule I believe you are exempt from this declaration.
If a property is in your name in the uk but it is mortgaged and the equity is only 20,000 pounds so i need to declare it? If yes i am late doing the paperwork because of the coronavirus. Will i be fined?
Thanks
Hi Jean,
my wife and I became Spanish resident from the UK at the end of May2019. I have not submitted a Modelo 720 and I am currently completing a Tax return online for completion by end of June 2020 in Spain. Our income and any savings would be significantly below 50,000 euro and we do not own property except in Spain. Am I correct that in this case the Modelo720 was not required or should I have completed year 1 by March 31st 2020 anyway and then not a subsequent one.
Hi Dave, as you have no foreign assets above 50,000 then you should not complete the Modelo 720.
Hi.
I bought a piso in Portugal in May 2019 for 64,000 euros. I mistakenly thought I could declare it in the renta this year in June and have just discovered that I needed to declare it using the modelo 720 before the 31st March.
I’m not sure what my consequences and penalties are for this misjudgement. What should I do? I want to be transparent with my earnings and from what I am reading this error could cost me a huge amount of money for just two months late filing.
Am I looking at a big penalty for my error?
Any advice really appreciated.
Andrew
I note that you state if any of your asset groups increase by 20,000euro then you need to submit a revised 720. No mention of a reduction in equivalent value. After searching many sources I cannot determine for instance if a bond matures it is a requirement to make a declaration showing that it has matured? Needless to I am reluctant to pay a gestor fee just to declare something no longer exists!
Yes it is a requirement to declare that.
what about a reduction of more than 20,000euros in say an investment due to a revaluation or as a result of a partial withdrawal?
Thanks
No that wouldn’t necessitate a submission.
Once you have submitted your first Form 720, you will only have to do it again, if:
Hi Jean,
I became a resident in Spain in February 2020. Must I submit the 720 in 2020 or next year?
Regards,
Dag
Next year.
Hi the paper i have been given in relation to filling in the model 720 seems to be a conflict of information, my wife and i have a joint bank account in England that is below the 50,000 threshold, but other financial assets shares, life insurance bond,
that in themselves are probably over the threshold, do we add them together or only declare the other financial assets, shares etc
Hi Anthony, in this case I’d rather you contact a qualified advisor to make sure you get everything right. Feel free to contact me if you want to get in touch with my tax lawyer.
Thanks been in today each one a separate item, so if you haven’t got the max amount in any of the 3 categories don’t need to declare
Do Prudential income draw down plans have to be declared on a Modelo 720?
Hi Susan, unfortunately I don’t know enough about that to be able to help you. Feel free to contact me via email and I’ll put you in touch with my advisor.
Hello Jean,
I am very much in doubt if i am obliged to fill in the form 720 or not.
I myself have a current account still abroad with some 4000 euros on it 31 december 2019. Further i had a limited authorization (only allowed to make payments in his name) of an account of my father with some 3000 euros on it 31th december 2019. (was only for a short time due to his illness)
Also my wife had a saving account outside Spain with 44.000 euros on it.
We are married.
The authorization is only on my name, she cannot access the account of my father.
The savings account is only on her name. I declare only half?
Is there an obligation to declare for both? Only me? Or neither of us?
If the answer is yes, do you know of some good advisor in Madrid?
Hi Carlo,
send me an email via the contact form and I’ll be happy to refer you to my trusted advisor.
Good morning Jean Galea,
First of all, I’d like to thank you for your blog, very interesting one! Thanks for your time dedicated to others.
I would like to clear some doubts that I have regarding the Modelo 720 and its three groups (bank accounts, insurance/rights and real estate).
First, I understand from the Spanish laws that every foreign account having an IBAN number enters, by default, in the first category of “bank accounts”. Is that right, or could there be exceptions implying that, even though a bank account has got an IBAN number, it may not be considered as entering in the first category?
Finally, I also have a pension plan outside of Spain, with the possibility of surrender at any time (surrender can be done in cases not covered by the Spanish law), and whose financial entity does not operate in Spain as a free service provision. I know it is necessary to declare that plan in the Mod. 720 though, does it enter in the second category “insurance/rights” or could it enter in the first category “bank accounts”?
Thanking you a lot in advance for your time.
Best,
André
Hi Andre,
As far as I know all bank accounts go into the first category if they have an IBAN number.
I’m not very familiar with the intricacies of pension plans, so I would recommend contacting a specialist. Many Spanish accountants and gestors might not be familiar with foreign pension plans, so I would recommend asking a company like Blevins Franks, as they specialise in these kinds of setups, especially for nimimising wealth tax burden and potentially that would also have implications on the modelo 720 declaration.
Do we have to declare a private pension scheme contracted abroad like 401K in US? If so, in which category?
From the FAQ page, it looks like it is not necessary but I have seen in some sites and also from a tax consultant that it needs to be declared. Is it in the grey zone, meaning it is safe to declare?
If you want to be a 100% safe you can declare it, although it is not mentioned as a requirement. The model tries to catch the obvious assets: bank accounts, shares and real estate. It leaves out many others and that’s one of the bad things about it. By doing that it puts many people in doubt and instills unnecessary fear. That in turn makes people seek expert advice, sometimes getting fleeced for it and encountering conflicting opinions.
Hello I am Spanish with an ownership of an apartment in Ireland and tenants paying rent. Because my tenants are paying the rent to a Spanish account,according to Irish revenue 20% of the total amount of rent must be withhold by the tenant or by a designate agent for tax purpose,and then, at the end of tax year revenue with to their math with me.
Can I declare to the Spanish agencia tributaria(Revenue) my income from the property in IRELAND and pay all my taxes in Spain(Irish and Spanish) in one go and all together, instead to pay my taxes for that tenancy in Ireland and then declare that income to the Spanish system .I am aware because of the agreement between Spain and Ireland I do not need to pay taxes in both places but as previously said.Is there a way that I can pay everything in Spain and them Irish revenue claim that money from the Spanish revenue?
I am a foreigner and will be a resident of Madrid next year. Will I need to fill out this form? I understand that Madrid residents have an exemption, is that correct?
No they don’t have an exemption. They are only exempt from paying wealth tax through a 100% refund in place in this region.
Hi
I was a resident in spain 2012-2013 when this modelo 720 started. I left spain in 2014.
I now want to come back and live in Spain again.
Any idea if I will have a problem with submitting the 720 from 2019? Will it trigger an alert from 2013? And then multas!?
Thanks
I doubt it will but to be sure obtain the advice of a lawyer in Spain.
Hi Jean,
what is the process to ask for an extension of the deadline?
My bank won’t give me the necessary information until end of April and tells me I have to ask the authorities for an extension of the deadline for the modelo 720…
many thanks,
Jacob
Hi Jacob, I’m not familiar with that procedure, although I would strongly encourage you to submit it within the timeframe as there are fines for submitting it late.
Regarding the 720 declaration firm: Do we have to declare RRSP accounts in Canada when one has become a resident in Spain?
Sorry I’m not familiar with what those accounts are.
Hello Mabel,
Have you found any info on declaring Canadian RRSPs on a 720 _
regards,
Shane
amazing how liuttle information it is about rrsp withdrawls and hacienda , its been 2 years im trying to get an anwser ….
Hi Maria, I was told that RRSP don’t have to be declared in the 720 form. Only cash or investments over 50.000€
Hi Jean,
At first paypal accounts look like they don’t need to be declared but researching the issue I found this information
http://blog.legisconsulting.com/2018/03/modelo-720-cuestiones-y-casos-especiales/
which links to the following page
https://petete.minhafp.gob.es/consultas/consultas/?num_consulta=V1419-15%20
saying that paypal accounts must also be declared.
I see, that seems correct. In my opinion, the modelo 720 is very problematic as it is not clear what should go in and what should not, and secondly it is almost impossible not to make mistakes when filling it in.
How many people have time to search through all the questions asked and then interpret the vague answers given before deciding what to put in? Not to mention that the process of filling in the forms can be quite cumbersome which means that you’ll probably have to hire a consultant to hope to get it right, and the going prices for filling in the modelo 720 seems to be in the region of 400-600 euro each person, which is scandalous. I hope that eventually this form will be eliminated, although the case in the European Parliament is taking a long time to be processed.
Hi Jean,
Is there a website where modelo 720 can be downloaded to be filled in?
Thank you in advance,
Tereza
No it’s something you fill in and submit online.
Thank you very much Jean. I am now trying to access the online form: https://www.agenciatributaria.gob.es/AEAT.sede/procedimientoini/GI34.shtml and then selecting con cl@ve IPIN, then I enter my NIE number and then the support number. The page tells me then that in order to receive the PIN they need to send me the invitation letter to my address.
Is there a way on how I can access the online form without having this invitation letter as I am now living in Germany?
Thanks a lot for your help,
Tereza
Unfortunately I don’t know the answer to that question.