Declaration of assets held abroad
About Declaration of assets held abroad, we would like to remind our clients and readers of the potential obligation to submit Form 720 to the Spanish Tax Authorities (Agencia Tributaria) if they hold assets or rights located abroad.
Form 720 is an informative tax return and does not, in itself, trigger any tax payment. However, it is a mandatory reporting requirement designed to provide the authorities with details of certain categories of foreign assets. Failure to comply, or submitting incomplete or inaccurate information, may result in significant penalties.
Categories of overseas assets that must be declared
The reporting obligation applies to Spanish tax residents who hold, directly or indirectly, assets abroad falling within the following three categories:
The obligation arises when the total value of assets within any one of these categories exceeds €50,000 as at 31 December of the relevant tax year. Once Form 720 has been submitted for a particular category, it must be filed again in subsequent years if the value of the reported assets increases by more than €20,000 compared with the previous declaration, or if assets have been sold, cancelled, transferred or newly acquired.
The filing deadline is 31 March of the year following the tax year being reported. As this is a formal reporting requirement, it is essential to gather accurate and complete information in advance of the deadline to avoid errors.
Given the complexity of international financial arrangements and the strict compliance framework surrounding foreign asset reporting, we strongly recommend reviewing your position in good time. Early assessment allows for proper verification of thresholds, valuations and reporting criteria.
Should you believe you may be affected, or if you require clarification regarding your specific circumstances, we would be pleased to assist you in analysing your situation and managing the submission process on your behalf. If you have any queries regarding the obligation to declare assets held abroad (Form 720), please contact our law firm in Marbella specialises in financial and tax law.
Telephone: +34 951 052 811
Whatsapp: +34 643 89 04 96
Form 720 information tax return on goods and rights held abroad.
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