Spanish law requires resident in Spain to provide information about offshore accounts, offshore investments, and real estate located abroad to the Spanish tax authorities.
Submitting Form720 does not imply any additional taxation, since it is just informative.
You must file a Form 720 if the following conditions apply:
- Offshore accounts in financial institutions and with a balance higher than €50,000. If at any time during the year the individual has the status of owner, holder, representative, authorized recipient, beneficiary or proxy holder.
- Values, rights (portfolio investments), life or disability insurances and annuity or temporal revenues, deposited, managed or obtained abroad, with a balance higher than €50,000.
- Real estate or rights on real estate located abroad with values higher than €50,000.
The Form 720 should be electronically submitted between January 1st and March 31st of the following year.
Once the first Form 720 is submitted, the individual will have the obligation of submitting this form during the following years, providing that:
- The value of any of the three categories of information has an increase of over €20,000 from the last time the Form 720 was submitted.
- If the ownership of any item included in each category has been relinquished.
Non-fulfillment of this obligation carries very severe fines.
Please note, tax regulations and tax rates change frequently in Spain, so this information may be out of date. Therefore, it is highly advisable to contact us for the latest information.
Please contact us if you want our firm to file your Form 720 by a modest fee.