Assets held abroad and new tax form 720
Thursday, February 7, 2013 @ 10:22 AM
The object of the this post is to inform you about the new form called 720, recently approved by the Spanish government by which people and companies that are resident in Spain have to declare their assets abroad.
If you are non-resident, you don´t have to do anything. Just beware in case you become tax resident in Spain in years on.
The form 720 will be submitted every year between January the 1st and March the 31st of the next year the information is related to. Regarding the information of assets abroad for the year 2012 the period will be (just because it is the first time to do it) between February the 1st and April de 30th.
What assets are to be declared?
1. Funds in banks opened and held abroad Spain when the sum at December 31st or the sum of the average of the last term of the year is above 50.000 €
2. Shares, insurances and any kind of financial product that added altogether have a value at December the 31st beyond the 50.000 €
3. Real estate goods and whatever rights over these kind of goods which value at December the 31st is above 50.000 €
What penalties will I have to face if I don´t do it?
Beside the taxation on the income tax and the penalties in that income tax declaration, the lack of submission of form 720 if you are supposed to, will bring you a penalty of 5.000 € per detail not declared with a minimum fine of 10.000 €. In case you declare without previous request of the Tax Office, but beyond the deadline commented above, the fines will be of 100 € per detail not declared with a minimum fine of 1.500 €
Do I have to declare every year the same goods over and over again?
No. If your heritage doesn´t change, or if the values of the assets declared don´t vary in more than 20.000 €, you don´t have to declare every year.
Best regards,
Best regards,
Antonio Robles Jara