Model 720: Declaration of Assets and Ownership Overseas
What is the Model 720?
Who is obliged to submit the Model 720?
If you have overseas assets that fit into any of the three groups (see below) and those amount to or exceed 50,000 euros, and only for the group in which this amount is exceeded, you need to submit the Model 720.
Do I need to submit the Model 720 every year?
Once you have made the 720 declaration, regarding your assets overseas, you only need to declare your overseas assets in subsequent years when:
- Any of the three groups experiences an increase in value greater than 20,000 euros.
- You are no longer the owner of the aforementioned assets (sale, transfer, etc., even if you made a loss).
In any of the 3 sectors, you did not previously have to declare that you had assets to the value of 50.000€, but NOW (in the fiscal year 2020) you do have assets to the value of or exceeding 50,000€.
When do I have to submit it?
For those who are a fiscal resident, and need to submit a new Modelo 720, or if your circumstances have changed from last year’s declaration, please remember that the period for presenting the Modelo 720: Declaration of assets and rights located abroad for the year 2020 is from 1 January to 31 March 2021.
Which are the three groups?
Three distinct groups define this declaration:
- Bank Accounts. Bank accounts which are already open, or for which you are already an account holder during the year which corresponds to the declaration. (Valuation: Whichever is the highest: the balance as of December 31st or the average balance for the last quarter of 2020).
- All types of financial assets. These include information on securities, assets, shares or amounts representing the capital stock of all types of entities, or the transfer of capital to third parties held abroad, as well as life insurances for which they are the beneficiary and annuities or temporary income of which they are the beneficiary. (Valuation: Value on 31st December 2020).
- Real estate. All types of Real estate. (Valuation: Acquisition cost).
Failure to meet this tax liability might be penalised by the Spanish tax.
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Model 720: Declaration of assets and ownership overseas
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