What is the Modelo 720 declaration, and who needs to submit it?
The Modelo 720 declaration is an informational tax form that requires residents of Spain to report certain assets held outside of the country. Any individual or legal entity, including companies, trusts and estates, must submit the form if they are a resident of Spain and hold foreign assets of certain types and values.
What types of assets must be declared on the Modelo 720?
The three categories of assets that must be declared on the Modelo 720 are foreign bank accounts, stocks, shares or investments in foreign companies, and foreign real estate.
How is the value of each category of assets determined for the purposes of the Modelo 720?
The value of bank accounts and other deposits is based on the balance at the end of the calendar year. For investments, the value is based on the market value as of December 31st. For real estate, the value is based on the original purchase price.
What is the threshold for reporting assets on the Modelo 720?
The threshold for reporting assets on the Modelo 720 is €50,000 per category of assets.
When is the deadline for submitting the Modelo 720 declaration?
The deadline for submitting the declaration is March 31st each year.
Are there any exemptions or exceptions to the reporting requirements of the Modelo 720?
There are some limited exemptions, such as for assets held in certain trusts or investment vehicles, or for assets held by certain governmental or nonprofit organizations.
What should I do if I have not previously reported my foreign assets on the Modelo 720?
Anyone who has previously failed to report foreign assets on the Modelo 720 should consider consulting with a tax advisor as soon as possible to determine the best course of action.
How can I ensure compliance with the reporting requirements of the Modelo 720?
The best way to ensure compliance with the reporting requirements of the Modelo 720 is to maintain complete and accurate records of all foreign assets held outside of Spain.
