Did you hear about a model 720 before?
If you’ve thought that we are going to talk about a car model or a fashion business, we have to say that the thing is more ordinary.
A model 720 is one of the most important tax declarations in Spain. The form 720 shall be submitted by all citizens and fiscal residents of Spain, if they possess any assets in other countries. You should submit your model 720 before March 31st , 2020 this year, declaring information for the previous year 2019.
The assets you hold abroad are divided in three groups in the model 720 and their status is assessed as for December 31 of the reporting year:
- Bank accounts – if the total balance of accounts exceeds 50,000 €
- Investments (stocks, deposits, dividends, etc), insurances, pensions held abroad – if their value exceeds 50,000€
- Property or business property – if their total cost exceeds 50,000€
It is crucially important to submit a model 720 after the first year of the fiscal residency in Spain. You are considered a fiscal resident if you have spent more than 183 day per year in Spain. The necessity of resubmitting the declaration will depend on the status of your assets. If there are no changes comparing with the previous year, there is no need to resubmit the form.
For not completing the model 720, if you have to, you risk incurring a substantial fine which may exceed 10,000 €.
You still have time to submit the form 720 to the Spanish Tax Authority before the deadline March 31st , and after fulfilling all the obligations you can keep enjoying a wonderful weather and a comfortable life in Spain.