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What is Modelo 720 Spain?
Modelo 720 Spain is a mandatory informative declaration form that tax residents in Spain must file to report certain assets and rights located abroad.
Introduced in 2012, this form is not a tax return but a transparency measure required by the Spanish Tax Agency to monitor foreign assets and combat tax fraud.
The obligation applies to both individuals and legal entities residing in Spain who, as of December 31st of the previous year, own or control assets abroad whose combined value exceeds €50,000 in any of the following categories:
- Bank accounts and deposits held in foreign financial institutions.
- Securities, rights, insurance policies, and annuities (such as shares, bonds, investment funds, and life insurance).
- Real estate and rights over real estate (including properties, usufructs, and similar interests).
If you have already filed Modelo 720 Spain in previous years, you are only required to submit it again if the value of any category increases by more than €20,000 compared to your last declaration, or if you lose ownership or rights over any of the reported assets.
Who must file Modelo 720?
The requirement to file Modelo 720 Spain applies to anyone who is a tax resident in Spain, including both natural persons and legal entities, who meet the asset thresholds.
Tax residency generally means spending more than 183 days per year in Spain or having your main economic interests there.
The form must also be filed by those who have authority over, or are beneficiaries of, relevant foreign assets.
Certain exemptions exist, such as for individuals under the Special Expatriate Tax Regime (“Beckham Law“), but these do not automatically extend to spouses or family members.
When is Modelo 720 filed?
The filing period for Modelo 720 Spain is from January 1st to March 31st each year, reporting the status and value of assets as of December 31st of the previous year.
For example, assets held on December 31st, 2024, must be reported between January 1st and March 31st, 2025. The form must be submitted electronically via the Spanish Tax Agency’s online platform.
If technical issues prevent timely filing, a few additional days may be granted, but extensions are generally not available.
Examples of when you must file Modelo 720
You are required to file Modelo 720 Spain, among other scenarios, if:
- You have sold or purchased property abroad.
- Your foreign investments have matured or been sold.
- You hold a life insurance policy abroad.
- You have opened or closed a bank account outside Spain.
Penalties for Non-Compliance
The Court of Justice of the European Union (CJEU) ruled in 2022 that the previous penalty regime was excessive and disproportionate.
Currently, penalties for late filing without prior notice are €100 per data item or set of data, with a minimum of €1,500 per asset category.
However, the obligation to file the form remains in force, and compliance is essential to avoid tax complications.
The requirement to file Modelo 720 Spain remains, but penalties have been adjusted to comply with European Union regulations.
Additional notes:
Modelo 720 Spain does not include cryptocurrencies for tax years up to 2022; for later years, check current regulations.
Submission is exclusively online, via the Spanish Tax Agency’s electronic headquarters.
