Spain. Tax Form 720: Declaration of Assets Abroad

Spain. Tax Form 720: Declaration of Assets Abroad

A recent Spanish law has transposed the Community directive on administrative cooperation in the field of taxation. Thus, reinforcing cooperation in the exchange of information between countries needed for the declaration of taxes.

Among other issues, is attributed to the Tax Agency competence to formulate requests for mutual assistance to other States or International Organizations. This provides legal security to be achieved and greater gility in the process of mutual assistance.

In this regard, all Spanish tax residents owning assets abroad over 50.000 euros, within a fiscal year, must fill this form 720. This obligation must be fulfilled during first quarter of each following year. This first year (2012) it is possible to fill it until April 30th 2013.

It must be informed,

• Accounts abroad, of any type, in financial institutions.
• Stocks and shares in any Non resident company, funds, trusts, heritage mass, directly or indirectly, bonds, values, financial rights, insurances and savings in insurance companies, deposited, managed or obtained abroad
• All types of ownership on Real Estate and rights over Real Estate abroad.

It is excluded from this obligation to declare value not exceeding 50,000 € for each type of assets.

After issuing form 720 for the first time, it will become mandatory, any year after if the value declared increases by more than 20.000 €.

Assets not declared, that cannot be proved its ownership arousing from declared income or assets, will be considered income to be taxed, and a 150% punishment over the value of them can be charged.

Penalty for not filling, filling incomplete or filing with non-accurate data, will be punished with 100 euros per data with a minimum of 10.000 euros.

Lexur Abogados, can help you in case you may need any assistance regarding the tax Form 720.

Please do not hesitate to contact us for further clarifications or additional information.