Form 720 Spain (Modelo 720) — How to Complete and File It in 2026

What Is Modelo 720?

Modelo 720 (Declaración sobre bienes y derechos situados en el extranjero) is an informative tax declaration required by the Spanish Tax Agency (Agencia Tributaria). It obliges all Spanish tax residents — both individuals and companies — to report assets held outside Spain that exceed specific thresholds.

Introduced in 2012 by Ley 7/2012, Modelo 720 was originally accompanied by extremely harsh penalties. In January 2022, the European Court of Justice ruled that Spain’s penalty regime was disproportionate and contrary to EU law (Case C-788/19). Spain subsequently reformed the penalties in March 2022 (Ley 5/2022), but the filing obligation itself remains mandatory.

Who Must File Modelo 720?

You must file if you meet ALL of the following conditions:

1. You are a Spanish tax resident (spending 183+ days per year in Spain, or having your main centre of economic interests in Spain).
2. You hold assets outside Spain that exceed 50,000 EUR in any one of the three asset categories (see below).

Who is exempt?

• Non-residents of Spain (including non-resident property owners)
• Tax residents whose overseas assets in ALL three categories are below 50,000 EUR each
• Assets already reported in a previous Modelo 720, unless the value has increased by more than 20,000 EUR in any category

The Three Categories of Assets

Each category is assessed independently at the 50,000 EUR threshold:

Category 1: Bank Accounts and Deposits

All accounts held at foreign financial institutions where you are the holder, authorised signatory, beneficial owner, or have disposal powers. This includes:

• Current and savings accounts
• Fixed-term deposits
• Accounts in fintech platforms (Revolut, Wise, N26 — if the institution is based outside Spain)
• Joint accounts (you report your proportional share)

Report: The balance at 31 December AND the average balance for Q4 (October-December).

Category 2: Securities, Rights, Insurance, and Income

Financial investments held with foreign institutions:

• Shares and stocks in foreign companies
• Investment funds and ETFs held in foreign accounts
• Bonds and fixed-income securities
• Life insurance policies with foreign insurers
• Pension funds held abroad (UK pensions, US 401k/IRA)
• Cryptocurrency held on foreign exchanges (now reported separately via Modelo 721)

Report: Value at 31 December.

Category 3: Real Estate and Property Rights

Property owned outside Spain:

• Residential and commercial property
• Land
• Timeshares and property rights (usufruct, etc.)

Report: Acquisition value (purchase price plus costs).

How to File Modelo 720 — Step by Step

Step 1: Determine If You Need to File

Review each of the three categories independently. If any single category exceeds 50,000 EUR as at 31 December, you must file for that category. You do not need to report categories that are below the threshold.

Step 2: Gather Documentation

For each reportable asset, you will need:

• Account/investment/property identification (account numbers, IBAN, property address)
• Country where the asset is located
• Institution name and identification
• Value at 31 December (and Q4 average for bank accounts)
• Date of acquisition
• Your percentage of ownership

Step 3: File Online via AEAT

Modelo 720 is filed electronically through the Spanish Tax Agency’s online platform (Sede Electrónica de la AEAT). You need:

• A digital certificate (certificado digital) or Cl@ve PIN
• Access to the AEAT online portal

Most expats file through their tax adviser or gestoría, which is strongly recommended given the complexity.

Step 4: Submit Before 31 March

The filing window is 1 January to 31 March each year, reporting on assets held at the previous 31 December.

Penalties (Post-2022 Reform)

Following the ECJ ruling in 2022, Spain reformed the penalty regime:

Infringement	Penalty (Current)	Previous Penalty (Pre-2022)
Late filing	Standard late filing surcharges (1%–15% + interest)	Up to 150% of the undeclared amount
Incomplete/incorrect information	General Tax Law penalties apply	5,000 EUR per data item (min. 10,000 EUR)
Failure to file	General Tax Law penalties (proportionate)	Undeclared amounts treated as unjustified capital gain; 150% penalty; no statute of limitations
Voluntary regularisation	Reduced surcharges + interest only	Full penalties applied regardless

Key change: The old regime’s most punitive feature — treating undeclared assets as unjustified capital gains with no statute of limitations — has been eliminated. Standard limitation periods now apply (4 years). However, the obligation to file remains, and penalties, while more proportionate, still exist.

Common Mistakes

• Forgetting UK pensions: SIPP, final salary schemes, and UK state pension entitlements may need to be reported under Category 2. Seek specific advice on pension reporting.
• Ignoring fintech accounts: Revolut (Lithuania), Wise (Belgium/UK), N26 (Germany) — if the institution is registered outside Spain, the balance counts toward Category 1.
• Not filing a subsequent declaration: You must file again if any category’s value increases by more than 20,000 EUR compared to the last filed declaration.
• Mixing up acquisition value and market value: Property (Category 3) is reported at acquisition value, not current market value. Securities (Category 2) use market value at 31 December.
• Joint account errors: For joint accounts, report only your proportional share, not the full balance. However, if you are an authorised signatory (but not an owner), you still need to report the entire account.
• Missing the deadline: The 31 March deadline is absolute. There is no automatic extension. File early to avoid last-minute technical issues with the AEAT portal.

Modelo 720 vs Modelo 721 (Cryptocurrency)

Since the 2023 tax year (filed in early 2024), Spain introduced Modelo 721 specifically for cryptocurrency assets held abroad:

Feature	Modelo 720	Modelo 721
Assets covered	Bank accounts, securities, property	Virtual currencies (crypto)
Threshold	50,000 EUR per category	50,000 EUR total crypto value
Filing deadline	1 Jan – 31 March	1 Jan – 31 March
Applies to	Spanish tax residents	Spanish tax residents
Penalty regime	Reformed (post-2022)	Standard General Tax Law

Important: If your cryptocurrency is held on a Spanish exchange (e.g., Bit2Me), you do not need to report it on Modelo 721 — the exchange reports it. Only crypto held on foreign platforms (Binance, Coinbase, Kraken, etc.) must be declared.

Frequently Asked Questions

Related Guides

• Your Guide to Spanish Tax
• Tax Regimes Across Spanish Regions
• Foreign Pensions and Taxation in Spain