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What is Form 720?

Form 720 is an informative declaration, mandatory for tax residents in Spain, to report assets and rights held abroad. This legal instrument, implemented to combat tax fraud and enhance financial transparency, affects both individuals and legal entities.

Who is required to file Form 720?

All tax residents in Spain who, as of December 31 of the previous year, are holders or beneficiaries of assets or rights located outside Spain whose total value exceeds €50,000 in any of the following categories:

  • Bank accounts in foreign financial institutions.

  • Securities, insurance policies, and annuities deposited, managed, or obtained abroad.

  • Real estate properties and rights over real estate located abroad.

Once Form 720 has been filed for the first time, it will only be mandatory to do so again if any amounts or values increase by more than €20,000 since the last declaration, or if you cease to be an owner, authorized person, or beneficiary of any assets previously reported.

When and how should Form 720 be filed?

Form 720 must generally be filed by March 31 of the year following the reporting period. Meeting this deadline is crucial to avoid potential penalties.

What information must be provided?

Form 720 requires the following information:

  • Details of the assets: Account number, property address, type of security, etc.

  • Identification of the entity or person with whom you have a legal relationship.

  • Value or balance of the assets as of December 31 of the relevant year.

Penalties for non-compliance. Failure to file Form 720, or filing it late, inaccurately, or incompletely, can result in significant penalties.
Although recent court decisions have questioned the proportionality of penalties related to Form 720, the obligation to report assets held abroad remains in force. It is essential to seek professional advice and review your obligations each year to avoid tax contingencies.

Recommendations

  • Annually review your foreign-held assets to determine if you exceed the reporting thresholds.

  • Collect and keep all supporting documentation (bank statements, property deeds, certificates, etc.).

  • If you are unsure about how to identify your assets or need help with the declaration process, consult a tax specialist.

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