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Modelo 720 (Foreign Asset Declaration)
Modelo 720 (Foreign Asset Declaration) — Modelo 720 is an informative tax declaration that Spanish tax residents must file annually to report assets held outside Spain in three categories: bank accounts, securities/investments, and real estate — when the total value in any category exceeds €50,000.
Modelo 720 is one of the most controversial and misunderstood tax obligations in Spain. Introduced in 2012, it requires anyone who is a Spanish tax resident to disclose their worldwide assets held outside the country. The European Court of Justice ruled in 2022 that Spain’s disproportionate penalties (up to 150% of the asset value) were illegal, and Spain has since reformed the penalty regime. However, the filing obligation itself remains fully in force.
What Must Be Declared?
- Category 1: Bank accounts held abroad (current accounts, savings accounts, term deposits) where the total balance exceeds €50,000
- Category 2: Securities, shares, funds, insurance policies, and investment accounts held abroad exceeding €50,000
- Category 3: Real estate owned abroad with a total acquisition value exceeding €50,000
Key Facts About Modelo 720
- Filing deadline: 1 January to 31 March each year (for the previous year’s balances as of 31 December)
- Only Spanish tax residents must file — non-residents are exempt
- After the initial filing, you only need to re-file if balances have increased by more than €20,000 in any category
- The CJEU ruling (January 2022) eliminated the disproportionate fines, but standard penalties for non-filing still apply
- Beckham Law beneficiaries are exempt from Modelo 720 for their first 5 years (they are taxed as non-residents on foreign income)
- The declaration is informational only — no tax is payable with it directly
- Failure to file can trigger an investigation and lead to the assets being treated as undeclared taxable gains
Related Legal Terms
- Modelo 210 (Non-Resident Tax Return)
- IRPF (Personal Income Tax)
- Beckham Law (Special Tax Regime)
- NIF (Tax Identification Number)
- Back to Legal Encyclopedia — A-Z Guide
Need Help with Modelo 720?
Our bilingual legal team assists expats across Spain with every aspect of modelo 720. We handle the paperwork, liaise with Spanish authorities on your behalf, and make sure nothing falls through the cracks.
This entry is part of our Legal Encyclopedia for Expats in Spain. Browse the full A-Z guide for more terms.
Disclaimer: This information is provided for general guidance purposes only and does not constitute personalised tax or legal advice. Each case must be assessed individually according to the client’s specific circumstances. It is essential to consult a qualified specialist before taking any action or making any decision.
Legal Notice: The content on this page is provided for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. No action should be taken based solely on this content without first seeking independent professional legal counsel. Each case requires individual assessment based on its specific circumstances. CostaLuz Lawyers accepts no liability for actions taken or not taken based on this content.