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Do you have assets outside Spain? You may need to file modelo 720 before March 31
LS Solicitors outline what Spanish tax residents need to know about declaring property, savings and investments abroad
If you are resident in Spain and hold assets in another country, the Assets Abroad Declaration, also known as modelo or Form 720, is something you should be considering right about now. The deadline for filing is March 31, and for some residents this obligation applies even if no tax is actually due.
This requirement is particularly important for people who became tax resident in Spain during the last year, but it can also affect long-term residents whose overseas assets have increased in value.
What is Form 720?
Form 720 is an information declaration submitted to the Spanish Tax Agency. It’s not a tax return and it doesn’t automatically mean you owe tax, but it does require you to inform the authorities about certain assets and rights held outside Spain if they exceed specific thresholds.
Because the rules are detailed and the penalties for mistakes or non-filing can be significant, it’s essential to understand whether it applies to you.
Who has to file it?
Form 720 must be filed by individuals and legal entities that are tax resident in Spain and who hold qualifying assets abroad above the reporting limits.
You are considered tax resident in Spain if any of the following apply:
- You spend more than 183 days in Spain during the calendar year
- Your main economic activity or interests are based in Spain
Non-resident taxpayers are not subject to this obligation.
The €50,000 threshold explained
The obligation to file Form 720 arises when the total value of assets in any one category exceeds €50,000. These categories are treated separately, so exceeding the threshold in one does not automatically trigger the others.
New residents in Spain who meet this threshold must check carefully whether they are required to file for the first time.
Residents who have already filed in previous years only need to submit the form again if there has been an increase of more than €20,000 in any category, or if previously declared assets have been sold, transferred or cancelled.
Assets that must be declared
Form 720 is divided into three independent blocks:
1. Bank accounts and deposits abroad
This includes accounts held outside Spain where you are the holder, joint holder, authorised signatory or beneficiary. In some cases, average balances over the year must also be reported.
2. Securities, investments and financial products
Shares, investment funds, life insurance policies, pensions, annuities and similar financial assets held or managed abroad fall into this category.
3. Property and property rights outside Spain
Apartments, houses, land and rights over foreign real estate must be declared if the combined value exceeds the threshold.
An important detail many people miss is that joint ownership does not reduce the obligation. If the total value of an asset exceeds €50,000, it must be declared even if your personal share is much lower. The same applies to joint bank accounts.
What happens if you have already declared
Once you have submitted Form 720 for the first time, you don’t need to file it every year automatically.
However, you must file again if:
- The value of assets in any category increases by more than €20,000
- In certain cases, an asset previously declared is sold, closed or cancelled
Missing this requirement is one of the most common mistakes made by long-term residents.
How and when to file
Form 720 is filed online via the Spanish Tax Agency website. The filing period runs from January 1 to March 31, and the information relates to assets held as of December 31 of the previous year.
Although no tax is paid with this form, penalties for late or incorrect submissions can be severe, even if you don’t actually owe any taxes.
Getting professional help
Form 720 is widely regarded as one of the most complex tax obligations affecting foreign residents in Spain. The rules around thresholds, asset categories and reporting values can be difficult to navigate without specialist advice.
Established in 2005, LS Solicitors is known for its independent legal advice and multilingual team. Their services are tailored specifically to the needs of foreign clients navigating the Spanish legal system.
If you are unsure whether Form 720 applies to you, or want to ensure it is completed correctly before the deadline, you can contact LS Solicitors at info@lssolicitors.es for unparalleled professional assistance.
Address
La Torre Golf Resort, Town Center La Torre, Roldan, Torre Pacheco, 30709, MURCIATel: 0034 968 032 424
“International team of experts in law and economy, to help you navigate your life in Spain safely.”
LS Solicitors & Management Solutions is a law firm and management company based in the Region of Murcia, founded in 2005.The services covered by LS Solicitors & Management Solutions include help when buying a property in Spain, financial assistance, support during the relocation process, processing taxes on your behalf, dealing with inheritance issues and myriad other legal aid services that you may need as an expat or homeowner in Spain.
Contact details
- Telephone number: 0034 968 032 424
- Email: info@lssolicitors.es
- Website: www.lssolicitors.es
- Facebook page: www.facebook.com/lssolicitorsspain
Office addresses
LS Solicitors have three offices in the major expat areas of the Region of Murcia, including at La Torre Golf Resort, Mar Menor Golf Resort and in Los Alcázares.
La Torre Golf Resort
Town Center La Torre
Roldan Torre Pacheco
30709 Murcia
Mar Menor Golf Resort
The Boulevard
Calle Pino Carrasco 6, Local 9B
30700 Torre-Pacheco, Murcia
Los Alcázares
Plaza Río Borines
Local 62.8
30710 Los Alcázares, Murcia
Office hours
Monday to Friday: 9am-2pm
