Many citizens from other countries decide each year to become residents in Spain but are unaware of the obligation to file Form 720 declaring their assets abroad if the value exceeds certain limits and they face sanctions of very high amounts.
Although this declaration has been complained to the European Economic Court for its excessive penalties and may be removed when the Court makes its sentence, for the time being it is still required to be presented.
The period for submitting the declaration is from 1 January to 31 March 2021
Requirements to be obliged to present the model 720:
1. To have obtained the residence permit in 2020 and to have resided in Spain for more than 183 days in that year.
2. To possess any of the following groups of assets abroad whose value, adding up all the assets in that group, exceeds 50,000 euros:
– Real estate
– Bank account balances at 31/12/2020
– Stocks, bonds or investment funds
If any of the groups of assets exceeds the established limit, model 720 must be submitted with complete information on all the assets that form the group..
If you obtained the residence in 2020 and you think that you may be obliged to present the model 720, contact with the fiscal advisers of Imont Legal Services so that they verify your information and, if it is necessary, to present the model 720 avoiding in this way the possibility of receiving great sanctions.