Remember that April 1 2019 is the deadline.
The informative declaration on goods and rights located abroad of Spain (720 Form) is one of the main measures in the prevention and fight against Tax Avoidance.
We want to remind you briefly what is the purpose and main characteristics of this Form.
Who is required to submit the mentioned declaration in 2.018?
Those individuals or entities who being Tax Residents In Spain own assets and rights located abroad Spain and, also, those that have some power of disposal without being the owner (empowered, representatives, and / or beneficiaries).
What assets and rights should be reported?
The Law classifies the assets to be reported into three different groups using the same information Form, but each group is treated separately in terms of the values to be consigned.
a).- Accounts and deposits in financial institutions located abroad.
b).- Securities, shares, rights, insurance and income deposited, managed or earned abroad
c).- Real estate located abroad and rights over them.
Limits and exemptions for each group of goods:
– Limit of € 50,000. In the case that the value of each group doesn’t exceed the mentioned amount, there is no obligation to declare.
– There doesn’t exist an obligation to declare when the assets and rights are individually registered in the owner’s accounting. Special attention should be given to those responsible or empowered in this case because they are not exempted.
– Finally, it is also exempt from declaring current accounts abroad that must be declared by credit institutions domiciled in Spain.
What penalties or consequences arise from non-presentation of the declaration?
Undoubtedly one of the most controversial points of this model, are the strong economic sanctions that we will detail. In this sense, the penalty regime of this tax declaration has already been questioned by the European Commission, the economic-administrative courts have begun to annul sanctions, under certain circumstances, and a flood of proceedings and actions are expected.
The current regulations, however, indicate that, in the event that the tax administration detects undeclared assets, it would consider them as a capital gain or income to be charged in the oldest non-prescribed exercise.
In addition, it will be sanctioned in the following way:
– Capital gains or income: 150% of the full installment.
– Data provided incompletely, inaccurately or falsely: € 5,000 for each data with a minimum of € 10,000.
– Late compliance: 100 euros for data, with a minimum of € 1,500.
Remember that the declaration of the model 720 must be submitted electronically via the Internet and may be done either by the declarant himself or by a third party acting on his behalf.
If you need our help for the presentation of the model 720 or have any questions about it, please contact us through our email ambit@ambitassessor.com or in our offices.
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Diplômé en droit et titulaire d'un master en fiscalité et gestion financière de l'Université de Barcelone, il possède également un diplôme d'études supérieures en droit des nouvelles technologies de l'ESADE. Il est spécialisé en droit fiscal et en droit des sociétés.
Avant de rejoindre Àmbit Assessor en tant que manager en 1999, il dirigeait le département Fiscalité et Comptabilité du cabinet d'avocats Busquets Terradellas.
Pendant plusieurs années, il a également enseigné, notamment les finances publiques et le droit fiscal à l'Université ouverte de Catalogne.
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