Reporting Assets Outside Spain. Form 720

Tax regulations and links to understand how to fill new Spanish tax form-720.

Form 720: Declaration of Assets Abroad. This form must be filled by all spanish residents owning assets abroad over 50.000 euros. This obligation must be fulfilled during first quarter of each year. Although this first year it is possible to fill until April 30th 2013.

In the model must be declared,

  1. accounts abroad in financial institutions,
  2. stocks, bonds, values, financial rights, and savings in insurance companies, deposited, managed or obtained abroad
  3. all types of Real Estate and rights over Real Estate abroad.

Each of the three blocks of goods, constitutes an obligation of different information to be provided, but the three reporting obligations are articulated through the same form. In this way three reporting obligations would be fulfilled by completing the form 720 informing all goods and rights with respect to the obligation to inform

It is excluded from this obligation to declare when the value thereof does not exceed 50,000 € for each type of assets. The presentation in successive years, after presenting form 720 for the first time will be mandatory when the value declared increases by more than 20.000 €.

The Declaration includes a record for each property situated abroad. For each record indicating its type and subtype:

‘C’:Accounts opened in  banking or credit entities located abroad.

  1. Current account.
  2. Savings account.
  3. Term deposits.
  4. Credit accounts.
  5. Other accounts.

·”V”: Securities or rights located overseas representative of participation in any type of legal entity, values located overseas representative of the transfer of capital to third parties or provided for its management or administration to any legal instrument, including trusts and “trusts” or mass though lacking legal personality, capable of acting in the course of trade.

  1. Values or rights of participation in any type of legal entity. As shares and participations in companies.
  2. Representative values of the transfer of capital to third parties. Bonds …
  3. Values provided for its management or administration to any legal instrument, including trusts and “trusts” or mass heritage which, though lacking legal personality, capable of acting in the course of trade

· ‘I’: shares and participations in share capital or equity fund of collective investment institutions located abroad. In this case there is no subtype.

· “S”: life insurance (savings not risk) or disability and pension time or annuities, whose insurance companies are located overseas.

  1. Insurance life or disability, whose insurance company is located abroad.
  2. Temporary or life income generated as a result of the deposit of capital, abroad.

· “B”: ownership and real rights over properties located abroad.

  1. Ownership of the property.
  2. Actual use or enjoyment and bare ownership rights over real estate.
  3. Timeshares, timeshares shifts, part-time property or similar formulas on real estate.
  4. Other rights in rem over real estate. In this case you must describe it.

It must file a return if any of those paragraphs (1:C, 2:V, I, S, or 3: B) exceds the figure of 50,000 euros, and only those sections in which the figure is over 50,000 euros.

Information to provide

Information to supply include, open accounts in financial institutions, the balances of these accounts on December 31st, the average balance for the last quarter of the year and the date of opening. All holders, authorized…  at 31 December shall declare the balance at 31 December and average balance. … Authorized holders who have ceased to be during the year, indicate only the balance of the day ceased to be holders, authorized…

In terms of the ownership of the account should be indicated if the declarant is:

  1. Holder
  2. Representative
  3. Authorized
  4. Beneficiary
  5. Usufructuary
  6. Taker
  7. With power of disposal
  8. Other forms of real property

In the case of Real Estate shall include the date and the value of acquisition, and the date of opening or cancellation of right over Real Estate and, in the case of values, rights, insurance and income deposited or managed abroad, the balance at 31 December of each year. And where appropriate the amount of transfer or sale.

The breach of this obligation has consequences on income tax and corporation tax.

Assets not declared, that cannot be proved its ownership arousing from declared income or assets, will be considered income to be taxed, and a 150% punishment over the value of them.

Penalty for not filling, filling incomplete, filing with non accurate data, will be punished with 100 euros per data with a minimum of 10.000 euros.

Cooperation with other States

On the other hand, Royal Decree approved today partially to Spanish law transposes the Community directive on administrative cooperation in the field of taxation. Thus, reinforcing cooperation in the exchange of information between countries needed for the liquidation of taxes.

Among other issues, is attributed to the tax agency competition to formulate requests for mutual assistance to other States or international organizations. This provides legal security to be achieved greater agility in the process of mutual assistance.

And already a few years ago the tax agency began to provide tax information for citizens of the EU to their respective countries through the model 299 which is filled by Spanish financial institutions, collected and processed by Tax Authority, and information send to respective countries.

The Government aims to deepen in the coming months in this type of agreements for the exchange of information, both to improve the collection of taxes, and to enhance the fight against tax fraud.

Example of filling in data for a current account

Frequently asked questions:

Important note: the obligation to submit a declaration in the case of co-ownership of a good, relies on the value of the asset, not in the value of the percentage owned.

the following questions and answers are taken from the AEAT website:

1.-Must be filed a Form 720 when ownership of a bank account abroad is shared  and  whose balance at 31 December exceed the €50.000, but whose ownership corresponds to several people?

  • There is a reporting obligation on the bank account when this limit is exceeded (if none of the other exceptions to the obligation to declare apply) regardless of the number of the account holders. Must be informed total balances, indicating the percentage of participation.

 2.-Must be filed a Form 720 when sharing ownership of Real Estate located abroad whose acquisition value exceeds the €50,000, at 31 December but whose ownership corresponds to several people?

  • Yes, there is a reporting obligation on the property when this limit is exceeded (if none of the other exceptions to the obligation to declare apply) regardless of the number of owners. Must be informed total acquisition value, indicating the percentage of participation.

3.-If a person ceases to be authorized in an account of a financial institution located abroad on June 2012 must file form 720? in that case, which has to be balance and the date to be reported?

  • There is obligation to declare if the balance that existed in the account on the date of the revocation of the authorization, if happened by the end of year would had determined obligation to declare by 31 December.
  • The content of the Declaration in connection with this account in the event that there is obligation to declare it must inform about:
    • Business name or full name of the Bank or credit as well as his home.
    • The complete identification of the account.
    • The date of the revocation of the authorization.
    • The account balance at the date in which I leave be authorized.

4. Do I need to declare pension schemes contracted abroad?

  • There is no obligation of information about pensions plans  (for contributions to them or capital into them) as long as is not fulfilled the requirement that is covered by the scheme and capital is withdrawn.

5-When an individual moved abroad once started the exercise and must file the tax on the income of natural persons by this exercise. Are you required to file also the information model with respect to the property and rights abroad?

  • Yes, provided in accordance with the regulation of these three obligations of information is obliged to fill form 720

6.- If a person is the “owner” of an account abroad whose balance at 31/12 is € 40,000 and is also “authorized” in other current account whose balance at 31/12 is €30,000, there is obligation to declare?

Yes, provided that no if no cause of exoneration.

7. Form Field “Tax Number in the country of fiscal residence”. There are no instructions what should be put in this box?

The instructions on how to fill concrete boxes are in the link that is up on the design of the model 720 records:

  • It will indicate the tax identification number of the entities declared in the previous field, assigned in the country or territory of residence tax.
  • This field will be blank when the “type of asset” take the value “B”.

Example: in the case of an account in the Bank Espirito Santo of Portugal, will be the VAT Number of this entity in Portugal.

8. Do I need to declare asset which have been sold during the financial year, and before 31 December has been reinvested in other assets?

No. When the loss of the status of owner or real owner referred to in the last paragraph of article 42 ter.1 have his origin in the transmission of values and rights, and the amount obtained had been entirely used in the acquisition of other securities or rights which must be declared, You only must declare balances at 31 December.


9. What exchange rate is used to value goods in foreign currency?

  • The European Central Bank official exchange rate will be used at December 31, for the balance at 31 December and for converting into euros fourth quarter average balance. BOE-Bank of Spain resolution
  • In the case of cancellations of accounts, the official rate on the date of cancellation will be used.
  • In the case of real estate, the value of acquisition, as well as in the rest of goods and rights subject to Declaration, must conform to the exchange rate prevailing on the date of December 31 for the year corresponding to the declared information.
Esta entrada fue publicada en English, IRPF, Sociedades. Guarda el enlace permanente.

426 respuestas a Reporting Assets Outside Spain. Form 720

  1. Ana dijo:

    El ano pasado presente mi 720 en relacion a una propiedad que tenia en el extranjero en 2015. En 2016 la vendi. Tengo ahora en 2017 que presentar de nuevo mi 720 en relacion a 2016 aunque en ese ano vendiese la propiedad? Gracias

  2. Derek Beatty dijo:

    I am new to this modelo 720. My wife and myself moved to Spain last July and have a house worth more than 100 000 euros in england. We rent house in England but our joint bank savings n England are less than 50 000 euros. We know we have to declare house but do we also need to declare savings on form 720 and do we have to declare rent on form 720.

    • Only, Spanish tax residents must fill 720 form.
      Tax residency in Spain is either you are resident 365 days of calendar year or no one. Is not possible to be resident only part of the year.
      So if in 2016 you were resident in Spain fro more than 183 then you may qualify for tax residency.
      If you arrived to Spain after the 2nd of July, then you was less than 183 days, so 2016 you are non-resident.

  3. Tim dijo:

    Hello. I inherited a 50% share of a property in the U.K. Last year. I am tax resident in Spain. Does this property need to be declared in the M720? It was not an acquisition but obviously has value. Many thanks

  4. Bruce dijo:


    Thank you very much for your informative blog. My wife and I are U.S. citizens and residents who are planning to spend about 11 months in Spain. We plan to arrive in Spain in early August 2016 (possibly with a week-long visit in July to find an apartment) and to return to the United States in mid-June 2017. We will travel to Spain on a non-lucrative visa and do not plan to work in Spain. We would rent an apartment, open a bank account and sign up for utilities. I expect we also would need to obtain an NIE and apply for a “residency” permit.

    My understanding is that, with this schedule and plan, we would NOT be tax-residents of Spain and would NOT be obligated to file a form 720 in 2016 or 2017 or pay the wealth tax on non-Spanish assets. Is that correct?

    Also, do you have suggestions about how we should complete various forms (e.g., our applications for residency permits and NIEs) to minimize the risk that Spanish authorities will claim that we are tax residents (or is that not a real risk)? Is there anything we should obtain in advance in the U.S. to confirm our status as U.S. tax residents (I am not sure if such documentation exists).

    Thank you in advance and best regards

  5. Anthony Coles dijo:

    I shall be submitting Form 720 for the first time as a new fiscal resident of Spain in 2015. I have threebank accounts in three separate countries. Do I report them all on the same form or a separate form for each?

  6. Jane Williams dijo:

    What is unacceptable with this law, firstly it discriminates against non Spanish nationals, secondly if you have a joint bank account and your participation is 50% of the balance the sum in euros could be under the 50k rule and therefore you would not need to complete the 720 in the first place. This is simply a scam by the Spanish Tax authorities to fine you a amount far in excess of the crime of late reporting. This has been reported to the European courts that Spain once again is in error. Shame on you Spain yer again you cannot be trusted.

    • Sorry, but discriminates Spanish residents with asets abroad, Spanish citizens and non Spanish citizens.

      European comision started infraction process against Spain on the 19th November. Lets see in the following months what will happen

      We will keep posting news on mayor Spanish Journals.

  7. Richard dijo:

    I have a flat in the Uk bought in 1992 for less than 50000 euros. I checked the land registry but theres no value listed. According to th HMland registry website they dont show the purchase price on properties bought before 2000.

    What do I need to to to show adquisition value?

    The previous owner renewed the 99 year lease in 1990 and the value stated on the lease is 30000. Would that be accepted although it was 2 years earlier?

    What other ways are there of showing adquisition value on propertys purchased pre 2000?

    Thanks in advance

    • in 720 form you declare acquisition value, that you say is under 50.000€, so you dont need to fill this form for this real estate.
      This acquisition value is the one stated in Deed, or sell purchase agreement, and do not change in the future, you will always declare for the same value.

  8. Vil dijo:

    Dear Javier,

    Thanks for your excellent Blog.

    Is it true that if you have lend out money to a friend say in 2013 which would be obliged to report in the 720 form on 31/12/13 is not reportable because it is not in an acccount in your own name because the balance is less then 50000. When the money is returned in 2014 it will show on the 720 on 31/12/2014 or if lend again will not show again?

    Thanks Vil

  9. sylvia dijo:

    What if you are joint owner of a property (one is tax resident Spain – the other is not), and the house has a 50% joint ownership, but you have never resided in the house and your share does not exceed the 50,000 euro at purchase (or should this be at todays value) ? Do you need to declare

    • You need to declare it in form 720 if real estate acquisition value (100%) is over 50.000 €, even if you have only 50%.

      But also the non resident one needs to pay taxes for owning real estate in Spain, it is a small tax, about 0,27% of cadaster value per year. For this a form 210 must be fill.

  10. Anthony Coles dijo:

    Where do I obtain a form 720? Can it be downloaded? Having recently arrived in Spain, I do have a NIE but no tax number.

    • First you need to activate your NIE as tax number filling form 030.
      720 cannot be downloaded, must be filled by Internet.
      For 720 get advise from us or any other advisors, as penalties for mistakes are quite big.

  11. Lisa dijo:

    Declare en 2012 datos de una cuenta bancaria. El ano pasado el banco ha cambiado de direccion. Todos los demas datos son iguales. Tengo que notificar Hacienda del cambio? Si la respuesta es si, como se hace. No es cuestion de modificar algo, porque la direccion era correcta en 2012. Es que uno de los datos han cambiado en al ano 2014. Que hago? Nada? Algo?
    Muchas gracias

  12. Susan dijo:

    Really useful site especially the questions and answers but could I query question/s in Feb/March from Christine & Irving Duncan?
    Surely if you live most of the time in Spain i.e.over 183 days you must be tax resident here and getting a tax residence certificate from HMRC should not, as you suggest, allow them to live here in Spain a d simply declare & pay taxes in UK?
    I didn’t understand this to be true but are you saying you can choose to continue to pay taxes in UK and not in Spain?

    • In that case for days you are tax resident in Spain according to Spanish tax regulations.
      If in UK you are also resident according to UK tax regulations, then there is a residency conflict.
      This conflict of double residency is solve by tax convention.
      Tax convention, has higher rank than UK and Spains tax regulations.
      Tax convention says that in casa of residency conflict, domestic regulations do not apply, and instead applies article 4th of tax convention.
      Under tax convention in many cases you are resident of the country where is your personal and economical centre. Even if you live 365 days in the other country.

      • Sara dijo:

        Buenos dias Javier y gracias por estas informaciones.
        Con respeto a su ultma respuesta, como es posible saber cuales sono los casos en que.. “you are resident of the country where is your personal and economical centre. Even if you live 365 days in the other country…”?

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