WHY DO I HAVE TO FILE THE 720?
The Model 720 is an informative declaration that anyfiscal resident in Spain who has assets or rights abroad is obliged to file.
The assets to be declared are divided into three blocks:
- Accounts and open deposits in banking entities located abroad.
- Investments and participations of any kind in any entity abroad.
- Real estate and rights over them, located abroad.
If you have not submitted it before:
If you have assets located abroad that exceed € 50,000 and you are an individual or an entity with residence in Spain, you have the obligation to file. It is important that you do so.
If you have already submitted it:
The Model 720 must be re–submitted:
- If any of the assets declared in the last 720 are cancelled.
- If there is an increase in the joint limit established for each block of information greater than € 20,000 with respect to the one previously filed.
IS IT SO IMPORTANT TO SUBMIT THE 720?
The report must be submitted on time and without errors.
The 720 has a much stricter system of obligations and penalties than for the rest of the informational tax reports.
WHAT IS THE SUBMISSION DATE?
The 720 is filed from January 1 to March 31 of each year, with respect to assets as of December 31 of the previous year. It must be submitted electronically at the Spanish Tax Agency.
IF I DECIDE NOT TO FILE, ARE THERE ANY PENALTIES?
Yes, there are penalties and hefty ones at that. You would face fines of at least € 1,500 for submitting it after the deadline, and € 10,000 for not submitting it … and they could be much higher.
If you do not file the 720, the fine is set at € 5,000 for each piece of data that should have been included in the return, with a minimum of € 10,000.
In the case of submitting the declaration after the deadline, without prior requirement from the Spanish Tax Agency, the penalty will be € 100 for each piece of information, with a minimum of € 1,500.
There will also be a penalty if the report is not submitted electronically. An authorized digital certificate is necessary to submit the 720 electronically.
Undeclared assets, the ownership of which cannot be proven from declared income or assets, will be considered taxable income with a 150% penalty on their value. Penalty for not completing, or completing incompletely,or filing with inaccurate data, will be sanctioned at € 100 per piece of data with a minimum of € 10,000.
IS IT EASY FOR THE SPANISH TAX AGENCY TO DISCOVER ME IF I DO NOT FILE IT?
Yes, of course. The Tax Agency has the tools to detect whether you have the obligation to file the 720 and if you have not done it.
Most Western countries signed an agreement for the exchange of financial information (FATCA) and cooperation in tax matters in 2013. The Spanish Tax Agency has the authority to formulate requests for mutual assistance to other States or international organizations.
A few years ago, the Tax Agency began to provide tax information of EU citizens to their respective countries through Form 299 which is completed by Spanish Financial institutions and collected and processed by the Spanish Tax Authority.
The exchange of information has been automatic since 2017.
CAN I PERSONALLY SUBMIT THE RETURN?
It is an informative statement, but the fines are so heavy that you must think about the risk of being wrong.
We have seen previously that fines are much higher than in other sanctioning procedures, so submitting the 720 with professionals guarantees greater peace of mind.
WHY CHOOSE U.S. TAX CONSULTANTS TO PREPARE THE 720?
Experience. We have been filing both Spanish and American taxes for more than 55 years. Our knowledge of the 720 comes from the many returns submitted since its inception in 2013.
Quality. The professionalism and experience of our professionals are a guarantee. Our quality controls prevent mistakes from being made. That said, it is important that the information you provide us is correct and up to date.
Tracking system for the client. U.S. Tax Consultants has designed an email customer information tracking system (TMS), specific to the 720. Thanks to this system, you will always know in which phase of the process your return is.
Payment by credit card. You can easily and safely pay by credit card.
DOES THE 720 AFFECT THE REST OF MY TAXES?
Having the 720 declaration is of great help for the preparation of the Spanish IRPF Model 100 and in the case of U.S. Persons for the 1040 or the Streamline (tax amnesty).
U.S. Tax Consultants recommends that tax preparation be centralized and carried out by a single agency, as it reduces the risk of errors by having all the client’s tax information for all Forms and Declarations.
For this reason, we offer a comprehensive tax filing service for both AEAT the Spanish Tax Agency and theIRS.
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28043 Madrid, Spain
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