Time is running out for submitting your Modelo 720 declaration for 2019, the “Overseas Assets Declaration”.
The deadline this year is the 31st March and is fast approaching.
All those tax resident in Spain – those living in Spain for more than 183 days a year or where Spain is the main residence base – should be aware that as a result of legislation passed on 29th October 2012, residents in Spain who have any assets outside of Spain with a value of €50 000 (or alternative currency equivalent) or more, are required to submit this declaration form to the Spanish authorities.
This declaration can be made online, through the Tax Office`s web page www.agenciatributaria.es where the Modelo 720 form can be located (type in Modelo 720 into the search block on the top right-hand side of the page). It must be filed between January 1st and March 31st of the first year of residence, although I would strongly advocate speaking with your tax professional, accountant or Gestoria to avoid mistakes.
What to Declare?
There are three main groups of assets that must be declared if the total joint value of the group exceeds €50 000: Property – Bank accounts – Investments
To warrant a declaration the total value of assets should exceed the currency equivalent of €50 000 in each or any one of the categories. For example, if you have three bank accounts totalling more than €50 000 you are subject to making the Modelo 720 Overseas Assets Declaration.
It is worth noting that once the limit of €50 000 is surpassed for a group then all assets in all groups need to be declared, regardless whether each asset does not surpass the limit. Additionally, the obligation to report exists where the specific assets are over €50 000 regardless of how many owners hold particular assets. Each owner should declare the total balance or value, and not the prorata value, indicating the percentage owned.
A declaration must be submitted individually, regardless of the percentage of ownership, i.e. joint accounts. For example, if you have a joint bank account with a value exceeding €50 000, although your particular share is below the threshold, say, €25 000, each owner would still be required to submit an individual declaration based on the total value of the account.
Although this declaration of assets is solely informative and no tax is charged, failure to file, late filing or false information could result in fines.
For this reason, we recommend that everybody arranges to declare their assets, to avoid the imposition of such fines. Once you have made your first declaration it is not necessary to present any further declarations in subsequent years, unless any of your assets in any category increases by more than €20 000 above the initial value declared.