Between January 2019 and the end of March 2019, all residents with assets abroad need to file a tax form called Modelo 720, assets report for residents in Spain over the tax year 2018, from 01/01/2018 to 31/12/2018.
This modelo 720 is in place since January 2013, reporting over the year 2012, this Modelo 720, assets report for residents in Spain has become compulsory for all Spanish nationals and foreign nationals being tax residents in Spain.
This Model 720 is for all tax residents in Spain with more then 50.000,-€ abroad in bank and savings accounts, properties and/or investments, obligations, deposits, annuities, etc.
The assets to declare are divided into 3 groups, bank accounts, property and bonds/annuities and deposits. If in 1 of the 3 groups you have over 50.000,-€ then you need to report this to the Spanish Tax office using Modelo 720.
This Modelo 720 is for your assets worldwide, meaning everything you own worldwide, beside your assets in Spain.
For new residents, meaning people that have become residents in 2018, in the year 2019 this Modelo 720 needs to be done over your assets on the 31st of December 2018.
For the tax residents that already have reported their assets to the Spanish tax office before, they only need to report when in the year 2018, if there has been a change in their assets abroad for a sum larger than 20.000,-€ in one of the above groups.
For all other residents in Spain, that did not report their assets before, but in the year 2018 their assets abroad have grown over the limit of 50.000,-€, in one of the described groups, have to report now in 2019 over the year 2018.
Please be aware that the Spanish tax office gives heavy fines to tax residents in Spain not reporting their assets abroad! The tax offices in Europe since a few years are working closely together, sharing data about nationals working or living abroad about taxation and assets. Not declaring might get you into troubles, when the tax office founds out about any undeclared assets in other countries.
If you have any questions about Model 720 or taxes in Spain, please contact us!