What is Form 720
Form 720 is an informational tax return in which residents in Spain (individuals and legal entities) must declare assets and rights held abroad. The purpose of this declaration is to prevent tax fraud and money laundering.
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What penalties apply for failing to file Form 720:
Although the penalty regime has recently been amended — penalties are now governed by the General Tax Act (58/2003), Articles 198 and 199, and are considerably more manageable than before — it is always better to avoid a penalty where possible.
What must be reported on Form 720:
Form 720 requires detailed information on the following:
- Accounts and deposits held at banking institutions located outside Spain.
- Securities representing a shareholding or participation in any entity domiciled abroad (including investment funds domiciled abroad).
- Real estate and rights over real estate situated abroad.
From what threshold must Form 720 be filed?
Form 720 must be filed when the total balance in one or more of these three reporting categories exceeds €50,000. Once filed, it must be submitted again only when there is a change in composition (for example, the sale of a property, the closure of an account, the acquisition of new shares, or the opening of a new account), or when the balance in one or more of the reporting categories increases by €20,000 or more.
Are foreign nationals required to submit Form 720?
Foreign nationals who are resident in Spain and who meet the requirements set out under Spanish tax regulations are also required to submit Form 720 if they hold assets or rights located abroad that exceed the thresholds established by law.
Simply residing in Spain does not automatically trigger the obligation to submit Form 720. The obligation to file this return depends on the total value of the assets and rights held abroad by the taxpayer — only if that value exceeds the applicable thresholds does the duty to submit the informational declaration arise.
Therefore, where a foreign national is resident in Spain and subject to Spanish tax obligations, and holds assets or rights located abroad whose total value exceeds the established thresholds, they will be required to submit Form 720 within the deadline set by Spanish tax regulations.
What is the deadline for submitting Form 720?
This declaration must be submitted before 31 March.
Contact our tax adviser for personalised guidance:
