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Only 10 days more to file Modelo 720

Mar 18, 2020 | Modelo 720, Uncategorized | 5 comments

It is only an informative declaration, but it has severe penalties.
If you were fiscal resident of Spain during 2019 and you have financial accounts or real estate properties outside Spain, you must file it.

Modelo 720 is an Informative Declaration on goods and rights located abroad. There are many articles in the press that say that the courts are backing down the sanctions of the Treasury for not filing the 720. Now that the time comes to comply with it, the question arises of who should file the model and whether it is really necessary to do so.

Behind the issue is the Motivated Opinion that the European Commission sent to Spain in February 2017 regarding the 720 model and its subsequent Biding Consultation where the AEAT offers significant alternatives, in order to reduce fines significantly. Brussels considers that this regime and informative declaration constitutes a restriction on the freedoms of the Treaty on the Functioning of the European Union.

The real challenge of the 720 is how complicated it is to fill out, which means that in many cases it is necessary to have a specialized consultant.

However, today this model is 100% current. The result is that if you want to avoid fighting with the Treasury, you should file it. The deadline to do so is from January 1 to March 31.

Residents in Spain are required to file it, if they have more than € 50,000 in assets abroad, including accounts and deposits, shares and property and real estate as of December 31, 2019. If model 720 has already been filed in a previous year, you will only have to declare again for the same group of goods if their value has increased by at least € 20,000.

5 Comments

  1. Justin Welch

    Hi,
    I met with you guys in late 2018.
    I believe I need to file a modelo 720.

    Regards

    Reply
  2. Fernando del Rey

    Should US IRA accounts be considered as part of the assets abroad to include in the Modelo 720?

    Reply
    • Antonio Rodriguez

      Yes, they are!

      Reply
      • Fernando del Rey

        But aren’t they equivalent to “Planes de Pensión” in Spain?

        Reply
        • Fernando del Rey

          And if to be declared, under which of the 3 blocks of the Modelo 720 should the IRA accounts be included?

          Reply

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