This document provides information about Form 720 filing requirements in Spain. Form 720 must be filed by Spanish tax residents to report assets held abroad if the value of bank accounts, investments, or real estate exceeds 50,000 euros. It outlines what assets must be reported, including bank accounts, stocks, insurance policies, and real estate. Failure to file or filing incomplete or inaccurate information can result in fines of up to 150% of unreported asset values. The deadline to file Form 720 is March 31, 2014.

1. Modelo 720
Antonio Rodríguez
NML Consultores
US Tax Consultants
Travesia de las Cañas, 2
28043 Madrid
Tel.: 91 5194392
info@nmlconsultores.com

2. Modelo 720
Fraud Prevention Law 7/2012
Form 720 of the – Agencia Tributaria
AEAT: Report of all assets abroad.

3. Modelo 720
Law 7/2012 approved according to the
Community Directive on
administrative cooperation in the field
of taxation. Thus, reinforcing
cooperation in the exchange of
information between countries needed
for the liquidation of taxes.

4. Modelo 720
The Government aims to go deeper in
this type of agreements for the
exchange of information with other
countries, both to improve the
collection of taxes, and to enhance the
fight against tax fraud.

5. Modelo 720
The Tax Agency has the responsibility,
among other issues, to formulate
requests for mutual assistance to other
States or international organizations.
This provides legal security to achieve
greater ease in the process of mutual
assistance.

6. Modelo 720
And, already, a few years ago, the tax
agency began to provide tax
information for citizens of the EU to
their respective countries through the
Form 299 which is filed by Spanish
Financial Institutions, collected and
processed by Tax Authority.

7. Who must declare
• All Spanish tax residents on 2013.
• Spanish permanent establishments
owned by non-residents.
• All Spanish entities such as
community properties and estates.

8. Who is a Spanish tax resident
• All those physically present in Spain over
183 days per year, unless residence in
another country can be certified.
• Whose principal activities or economic
interests are in Spain.
• Spanish residence will be presumed, if the
spouse and minors reside in Spain.

9. How to determine your residence
• Anyone who resides in Spain over 183
days is presumed to be a Spanish tax
resident.
▫ EXCEPTION: Those certified by the IRS
as US Tax Residents.
• Those granted special non-resident
five years tax status (Beckham Law)

10. If you have residence in Spain
• You must file IRPF, before June 30th 2014
with all your worldwide income, unless
you are exempt from doing so under a
bilateral treaty.
• You must file Form 720: Assets abroad,
before March 30th.
• Other taxes for residents:
▫ Impuesto de patrimonio. Wealth Tax
▫ Impuesto de trasmisiones/donaciones. Gift Tax.

11. Reporting assets outside Spain
This form must be filed by all Spanish
Residents owning assets abroad, only if
they are over the limits described later.
1. Bank accounts.
2. Investments.
3. Real Estate.

12. Reporting assets outside Spain
•Form 720 must be filed if any of
these blocks exceeds the amount
of 50,000€ and only the block in
which the amount is exceeded.
•If you have filed Form 720 last
year, it must be filed again this
year if any block had an increase
of 20,000€ during 2013.

13. BLOCK 1 Bank accounts
Accounts in financial
institutions abroad, which
includes current accounts,
savings accounts, term
deposits, credit accounts…

14. BLOCK 1 Bank accounts
Information on each account
should include the balance of these
accounts on December 31st, the
average balance for the last quarter
of the year and the date of opening.
Also if you are account holder,
authorized…

15. BLOCK 1 Bank accounts
Holders and authorized
holders, who have ceased to be
during the year, must indicate
only the balance of the day
ceased to be holders or
authorized holders.

16. BLOCK 2 Stock and investments
Stocks, bonds, values,
financial rights, and savings
in insurance companies,
deposited, managed or
obtained abroad.

17. BLOCK 2 Stock and investments
Information on the investments
should include the acquired date,
purchase price and value at
December 31, sale price and date of
disposition, capitalization and
rescue value at December 31.

18. BLOCK 2 Stock and investments
• Section 1
Securities or rights located overseas
representative of participation in any type of legal
entity; values located overseas representative of
the transfer of capital to third parties or provided
for its management or administration to any legal
instrument, including trusts though lacking legal
personality, capable of acting in the course of
trade.

19. BLOCK 2 Stock and investments
• Section 2
Shares and participations in share capital or
equity fund of collective investment institutions
located abroad.

20. BLOCK 2 Stock and investments
• Section 3
Life insurance (savings not risk) or pensions or
annuities, whose insurance companies are located
overseas.

21. BLOCK 3 Real Estate
All types of Real Estate and rights over
Real Estate abroad, which include
ownership of the property, actual use
or enjoyment and bare ownership
rights over real estate, timeshares,
timeshares shifts, part-time property
or similar formulas on real estate,
other rights over real estate.

22. Estimated value
When the assets belong to more
than one owner / beneficiary,
all owners must declare the
assets for the full amount,
indicating percentage of
ownership.

23. Exceptions
When the assets have already
been declared in Spain,
individually identified, as part
of a business.

24. Due date
• March 31, 2014.
• Applications can be completed only
OnLine by authorized tax consultants
or those with digital signature or PIN.
• Heavy sanctions for noncompliance

25. Fines
Penalty for not filling, filling incomplete,
filing with non-accurate data, will be
punished with 100 euros per data with a
minimum of 10.000 euros.
Assets not declared, that cannot be proved its
ownership arising from declared income or assets,
will be considered income to be taxed, and up to
150% penalty over its value.

26. Other obligations
• To report all transactions with non
resident banks, to the Bank of Spain
(Form DD1 and Form DD2)
• To report transactions with non
residents in relation to any other asset,
including loans, insurance and real
estate.

27. The End
Travesia de las Cañas, 2
28043 Madrid
Tel.: 91 5194392
info@nmlconsultores.com
www.USTaxConsultants.net
www.NMLconsultores.com