Modelo 720 over year 2019
In 2020, from 1 of January to 31 of March, is the time for presentation of the modelo 720.
This model of the Spanish national tax office is for all tax residents in Spain to report their assets worldwide, so all assets you may have outside of Spain.
Please be aware that this tax report is compulsory for all Spanish nationals and foreign nationals being tax residents in Spain in the year 2019.
The tax report is not declare any income or interest received, it is just to report what you have abroad on assets. Off course the tax office does use this information later on to check on what you declare in your income tax declaration on income/interest and in the case that you for example sell a property abroad, as then capital gains might be payable in Spain.
The assets are divided into 3 groups and is about all your bank and savings accounts, properties and/or investments, obligations, deposits, annuities, etc.
The 3 groups are:
- Bank accounts (current and savings)
- Bonds/annuities, shares and deposits.
If in 1 of the 3 groups you have over 50.000,-€ invested, then you need to report this to the Spanish National Tax office, using the mentioned Modelo 720.
In the case that you have already filed this Modelo 720 before, this model is active since 2013, what do you need to be aware off? In the case that you have a change in value of your assets for an amount over 20.000,-€ in any of the groups mentioned above, then you are obliged to make an addition or a new assets report modelo 720.
What happens is you have become tax resident in 2019 and have have value over 50.000,-€ to declare in 1 or more groups? In that case in the year 2020 this Modelo 720 is your first assets report over your assets on the 31st of December 2019.
Then there can be the case that you are tax resident in Spain for a number of years already, but in the past you did not have to report as the value of your savings was 30.000,-€. In 2019 you have received for example an inheritance with a property abroad valued over 50.000,-€ and a bank account of 25.000,-€, what do you need to do? In that case you have to report now in 2020 over the year 2019 your first modelo 720 for the groups property and bank accounts.
There are heavy fines in place to tax residents in Spain that are not reporting their assets abroad! As each year more and more tax offices all over Europe are working together, it is for tax offices in other countries not that difficult to find out your assets and taxation abroad.
If you have any questions about Model 720 or taxes in Spain, just contact us!