If you are a resident in Spain and own assets outside the country with a value of more than €50,000, then you’ll need to fill out the Modelo 720 tax declaration. This form is designed to provide information about the assets that Spanish residents have abroad, including financial accounts, real estate, and shares.
The purpose of the Modelo 720 is to help combat tax fraud and ensure that Spanish residents are paying their fair share of taxes. The information provided on the form is used to detect any discrepancies between assets declared in Spain and those held abroad.
SO, WHO NEEDS TO FILL OUT THE MODELO 720? The declaration is mandatory for anyone who is a tax resident in Spain and meets the following criteria:
- If you own assets worth more than €50,000 in a foreign country. This includes bank accounts, investment portfolios, and real estate.
- If you’re the owner of a foreign company or hold shares in one.
- If you’ve inherited assets from a foreign estate.
If you meet any of these criteria, you’ll need to fill out the Modelo 720 declaration by March 31st of each year.
So, how do you fill out the form? The process can be complicated, and it’s recommended that you seek the help of a tax advisor to ensure that you’re completing it correctly. Here’s a breakdown of the information that you’ll need to provide:
- Personal Information: You’ll need to provide your name, address, and tax identification number.
- Asset Information: You’ll need to list all of your foreign assets, including the value of each item and the country where it’s located. This includes bank accounts, real estate, shares, and other investments.
- Income Information: You’ll need to provide information about any income generated by your foreign assets, including interest, dividends, and capital gains.
It’s essential to fill out the Modelo 720 accurately and on time to avoid any penalties or fines. Failure to comply with the requirements can result in fines of up to €10,000 per item, with a minimum penalty of €1,500.
In summary, if you’re a tax resident in Spain with assets worth more than €50,000 abroad, it’s essential to fill out the Modelo 720 declaration by March 31st of each year. Seek the help of a tax advisor to ensure that you’re completing the form correctly and avoiding any penalties or fines. By providing accurate and timely information, you can ensure that you’re fulfilling your tax obligations and contributing to the Spanish tax system.
Marfour International Law Firm expert tax advisory services and can assist with the preparation and submission of both tax models, ensuring that you meet all the necessary deadlines and fulfill your tax obligations based on your unique circumstances. With our assistance, you won’t have to worry about anything.
