Tax form 720 (Orden HAP/72/2013, de 30 de enero, por la que se aprueba el modelo 720, declaración informativa sobre bienes y derechos situados en el extranjero, a que se refiere la disposición adicional decimoctava de la Ley 58/2003, de 17 de diciembre, General Tributaria y se determinan el lugar, forma, plazo y el procedimiento para su presentación. (BOE 31-enero-2013) is an informative tax declaration that only Spanish tax residents are obliged to submit to the Spanish tax office every year. It was started in 2012, and the main reason to it was the Spanish Inland Revenue controlling the underdeclared earnings to those who decided placing assets and wealth outside the Spanish Territory bounderies.
Deadline to present this tax return is 31.03.2020.
Tax form 720 is particularily sectioned in three separated sections:
- Bank accounts placed overseas.
- Properties located outside Spain, and;
- Bank Trusts if any also placed outside Spain.
In case of being obliged to any of these sections, you will be obliged to submit this informative tax declaration before end of March.
Section 1 is bank account information. You should give the Spanish Inland Revenue all kind of information about this account of yours placed overseas i.e. name of the bank, bank account number, date the account was started or closed, bank account balance on the 31.12.2019, avarage balance in the account in the last quarter of the year and bank account balance at the time the account was cancelled during the year 2019.
Exactly the same to Section 2 if you had any type of Company share investment, life insurance pension benefits, and/or lifetime or temporary early retirement pensions, and the same to Section 3 if you had any type of properties, premises, … placed overseas.
If you did not submit this tax declaration, and you were obliged to, should you then be considered as tax frauding, and be aware of enormous amount of tax penalties fines which vary between 1.500 euros and 10.000 euros plus income tax penalties that could raise your income tax bill by 150% if worse case scenario.
If you are Spanish tax resident, should you then inform the Spanish Revenue to all your banking assets, and property/ies located overseas in 2019 if being higher than 50.000 euros, solely in your name or jointly together with someone else.
Once this tax return is done one year, and providing the value of the assets located in any of the three described sections did not vary up or down by more than 20.000 euros, you will not be obliged to subit it again.
If you seemed to be obliged to present this tax form before 31.03.2020, and you wished our Firm to assist you and present it in your representation, should you let us have all following information:
- Full names
- NIEs
- Dates you became Spanish residents.
- Bank account number overseas
- Bank office name and address
- Account balance on 31.12.2019
- Average account balance in the last quarter of the year 2019 (Oct., Nov., and Dec).
- House address and joint or solely owners.
- Exact date when you bought it.
- Exact value you paid and declared when you bought it.
Our cost for submitting this tax declaration is 150.00 euros.