Tax form 720

Raymundo LarraĆ­n Nesbitt, March, 21. 2019

Lawyer Raymond Nesbitt gives all Spanish tax residents a gentle reminder to submit tax form 720 over the next weeks. Last day to submit it is the 1st of April 2019.

The following blog post has been summarised to avoid unnecessary tax technicalities. The quoted tax rates are subject to change from one year to the next. Seek professional legal advice on your matter – see disclaimer below. Image courtesy of Blog Self Bank.

Photo credit: AEAT logo

Blog post copyrighted © 2018, 2019. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
Lawyer - Abogado
21st of March 2019

This tax form is for reporting purposes only, you do NOT pay any tax on submitting it.

I have structured this blog post as a FAQ for ease of comprehension.

Who needs to declare?

All Spanish tax residents who own assets overseas over €50,000.

E.g. Mr. and Mrs. Smith live all year round in Mijas Costa, Spain. They own two houses in Berwickshire, England, have open bank accounts in the UK and receive UK-based pensions.

Mr. and Mrs. Smith are in fact tax resident in Spain and they both need to submit tax form 720.

Again, and for the avoidance of doubt, if you are non-resident in Spain you do NOT need to file this tax form; it’s only for residents.

Who is considered tax resident in Spain?

The Spanish Tax Office applies - amongst others - the following broad criteria:

  • You spend more than 183 days in a calendar year in Spanish territory.
  • Your centre of financial interests is located in Spain.
  • Your spouse and/or underage children live in Spain.

 

Obligation to report?

You must report all assets in a particular category if the value of your total assets in it exceeds €50,000.

2019 submission period

From the 1st of January until the 1st of April 2019.

Can I file it after the submission period?

Yes, but penalties apply. Ask us.

If you have already filed tax form 720 in the past

You only need to file it again if:

  • The value of an existing asset grew by more than €20,000, or
  • You sold an asset, or
  • You obtained a new asset.

 

Penalties for non-compliance

The disproportionate fines levied are (very) stiff.

  • Failing to file 720 or filing it incorrectly: €5,000 per infraction.
  • Minimum fine of €10,000 for each group of assets.
  • Penalty of 150% on unpaid income tax.

 

The Common Reporting Standard and you

Please take good note that with the advent of the Common Reporting Standard (CRS), signed by over 100 countries to combat tax evasion, as from the 1st of January 2018, the Spanish Tax Office is being spoon-fed fiscal information by your home tax office.

For example, both HM Revenue & Customs and Ireland’s Revenue Commissioners are busy supplying the Spanish Tax Office with detailed information (and vice versa) on all your overseas assets and reported income derived abroad as from the 1st of January 2018.

We strongly advise you to submit tax form 720 if you are resident in Spain to avoid steep penalties.

 

Larraín Nesbitt Lawyers offers this tax service: Tax form 720

 

 

Larraín Nesbitt Lawyers, small on fees, big on service.

Larraín Nesbitt Lawyers is a law firm specialized in taxation, conveyancing, inheritance, and litigation. We will be very pleased to discuss your matter with you. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 951 894 675 or by completing our contact form to book an appointment.

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en mi pupila tu pupila azul,
¡Qué es poesía! ¿Y tú me lo preguntas?
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Gustavo Adolfo Claudio Domínguez Bastida (1836 - 1870). Was a brilliant young Spanish poet belonging to the Romanticist bewegung. He was also a playwright, literary columnist and talented writer. Clearly, he had a penchant for blue-eyed girls. Posthumously he would be acknowledged as one of the most notorious and gifted figures in Spanish literature, displaying a truly rare artistic sensibility. He would die young aged only 34 from tuberculosis, known as the "the romantic illness," as befits any true romantic poet. His crowning achievement would become his Rimas y Leyendas (Rhymes and Legends), an assorted collection of bewitching tales and poems that draws from popular Spanish folklore.

 

Tax services available from Larraín Nesbitt Lawyers

 

Non-resident taxation-related articles

 


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