Form 720

TAXES FOR FOREIGNERS

Specialized Advisory on Form 720

If you reside in Spain or your company is located here, and you hold shares, securities, bank accounts, or real estate abroad with a value exceeding 50,000 euros, remember that you must file Form 720 before March 31st.

Although European courts considered this model “contrary to Union Law,” the Spanish Government has maintained it by modifying certain aspects to comply with European regulations; therefore, it remains in force.

At JDV, we are tax advisors specializing in the filing of Form 720. CONTACT US and leave your peace of mind in our hands.

We prepare and file your Form 720 within the deadline, avoiding potential errors that could lead to a penalty.
If you have missed the filing deadline, as advisors, we take care of preparing and filing it late to avoid larger sanctions.

Who is required to file Form 720?

All individuals and legal entities resident in Spain, permanent establishments in Spanish territory of non-resident individuals or entities, and any other entities referred to in Article 35.4 of Law 58/2003 (General Tax Law) are required to file Form 720 (Modelo 720), provided that the value of their assets or rights exceeds 50,000 euros. You must file Form 720 if:

You have legal or beneficial ownership of the assets or rights.
You have the power to dispose of those assets, even if you are not the legal owner.
You are a representative, proxy, authorized signatory, or beneficiary of those assets or rights.

What happens if I do not file Form 720?

This is where the controversy surrounding this declaration lies: the disproportionate nature of its penalties. There are several scenarios:

Failure to comply with the filing obligation: A fine of 5,000 euros will be imposed for each item of data that is inaccurate, incomplete, or omitted, with a minimum penalty of 10,000 euros, as it is classified as a tax offense.
Late filing or filing by non-electronic means: A fine of 100 euros will be imposed for each incomplete or inaccurate item of data, with a minimum penalty of 1,500 euros.

All assets and rights that have not been declared by the taxpayer will be treated as unjustified capital gains for Personal Income Tax (IRPF) or Corporate Tax purposes. This scenario carries a financial penalty equal to 150% of the value of the undeclared assets and rights.