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Penalties For Non Declaration Of Assets For Modelo 720

Not declaring your assets abroad could be a very expensive business.

Form 720. Tax declaration on property and assets abroad DUE DATE: 31 March 2018

  • Do you have bank accounts abroad?
  • Do you have a property outside of Spain?
  • Do you have securities, shares or receive interest abroad?

If so, contact us and we will answer all your questions about declaring them in Spain.

Form 720, what is it?

It is an informative declaration on goods and economic rights located or managed abroad. There is not tax to pay however there is a clear obligation to declare if your assets outside Spain amount to more than 50,000 Euros.

Who is required to declare?

Spanish Citizens and Spanish Residents both individuals and companies.

Which items must be declared?

1.Bank accounts and cash deposits located outside Spain.
This includes details such name of the account, bank account number, opening date, bank balance, etc.

2. Participation in any type of financial entity.
Insurance policies, shares , annuities and so on

3. Real estate, and the rights over them in a country other than Spain
This includes details such location, acquisition date, purchase value, etc. that should be provided.
(There are special rules for usufruct, null property, timeshare, etc.)

How and when is the declaration presented?

The informative declaration on goods and rights abroad must be submitted using form 720. This tax return can only be presented online at the Tax Office website.

This must be done between January 1 and March 31 of the year following that to which the information to be supplied refers.

***What are the consequences of not presenting the 720 tax return?***

Although the declaration on goods and rights abroad in the model 720 has an informative character, the consequences that may arise from failure to submit at all and/or on time could be very serious. There are also penalties for an incorrect submission.

Failure to comply with the obligation to inform could result in:

  • A fine of 5,000 euros for each piece of data or data set that should have been included in the declaration or is incomplete, inaccurate or false, with a minimum of 10,000 euros.
  • Fine of 100 euros for each piece of data or data set, with a minimum of 1,500 Euros, when the declaration has been filed after the deadline without prior request from the Tax Administration

Unjustified capital gain or undeclared income:

  • There is an additional fine for those in possession of an undeclared asset or right in a foreign country, as it will be considered as an unjustified capital gain, (AND THIS IS NOT YET THE WORST OF ALL FINES) which will be included as part of their income to be added to their personal income tax return.
  • In the event of unjustified capital gains, a specific sanction of 150% of the full Income or Corporation Tax (THIS IS THE HEAVIEST OF ALL) corresponding to the aforementioned unjustified capital gain is established.

You can request more information by completing the form below:

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Legal & Accounting Network

Legal & Accounting Network SL is an Estepona based Company that has been operating since 2001 offering consultancy services for individuals and Companies that require assistance with accounting, legal and tax affairs.

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