Are you a tax resident in Spain? Do you have property of over € 50,000 outside Spain? If so, form 720 is for you.
The form 720 is a declarative obligation for tax residents in Spain. As of 2013, all assets outside Spain are to be declared.
Who is concerned?
Owners, beneficiaries, co-signatories and authorized signatories of assets abroad.
What should be declared?
The goods to declare are divided into three groups of goods:
- bank accounts opened in foreign establishments
- securities, rights, insurance contracts managed abroad
- real estate located abroad
The declaration is mandatory if the value of one or more of these groups is greater than 50,000 €. It will have to be renewed the following year if the value of the assets in each category increases by € 20,000.
How and when should the statement be presented?
It must be presented electronically between 1 January and 31 March of the following year. The declaration might be submitted at a different time or in another form but the penalties are heavy.
What are the penalties?
Late submissions, without prior notice to the Spanish tax agency (AEAT) incur a fine of € 100 for each data or set of data (with a minimum of € 1,500) for property or right to property that should have been included in the declaration.
In case of incomplete, inaccurate, or false declarations, the penalty is 5000 €.
In case of non-declaration and if the tax authority discovers the goods abroad, the fine will be equivalent to 150% of the amount due to the tax office.
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