Am I compelled to present the Modelo 720 form on assets abroad?, Gaudium Asesores

The Modelo 720 form is not a tax you must pay, but an informative tax return.

It is mandatory for foreign residents in Spain who own accounts, assets or property which value is more than 50.000€.

You should take into account that the deadline for the presentation is March 31st 2020.

Who must present the Modelo 720?

Natural people or legal entities resident in Spain possessing or getting benefit from accounts, assets or property abroad for a value of over 50.000€.

Additionally, there are three information blocks in the Modelo 720 that contemplate the following stock types:

  • ACCOUNTS AND DEPOSITS, in financial entities.
  • Assets, like stock or investment funds, shares or income, insurance.
  • PROPERTY and rights on property

From which amount on should I present the declaration?

Currently, you must present the declaration when the total value of each item is higher than 50.000€.

For example, if you have got:

a. – Accounts in foreing banks for an amount of 15.000€
b. – An investment fund (category: assets) abroad for 58.000€
c. – Property outside Spain which purchasing value was 49.000€

In this case you must declare only the investment fund

What happens if I don’t present it?

To begin with, there are fines that go from 5.000€ to 10.000€.

Besides, if Hacienda finds out that you did not present the Modelo 720 in the case of:

Natural people, the possession of the good that has not been declared will be considered as  unjustified patrimonial profit and will be integrated to the  general net base of the profit, to the maximum percentage.

For legal entities, it will be considered an undeclared profit. It will be charged on the tax on Partnerships, on the oldest period.

 

To finish, there may be a penalty of 150% of the full quota of the Corporate Tax or the IRPF corresponding to the unjustified patrimonial profit. This can be avoided if you present the statement without previous requirement of the Tax Administration.

How to do this presentation

Here you will find a tutorial

Intelligent alternative: leave it to professional consultants. 


At Gaudium Consultants (Gaudium Asociados) we provide this service year after year to more than 300 clients who trust us.

Contact us, we are here to help you.