Modelo 720

All foreign tax residents of Spain must declare their pensions (private and civil service) to the Hacienda, at this tax return moment there is an amnesty allowing declaration without penalties!

In addition a modelo 720 must be declared for any additional assets aquired since the last declaration, if this is done through a tax consultant they normally charge a minimum of 100 euros each submission, (one or numerous assets) so you could submit say 5 or 6 assets and the charge would be the same as for one. I understand that the Hacienda might do this free of charge! 

One thing I think would be helpful, if because of language problems one needs to employ an agent, the charge could be used against tax, as one can use charges by an accountant in the UK.

The requirement to fill Form 720 is considered illegal by European Comission .

Is it possible  that a country can impose thousands of euros fines for a person staying half year or more

 if he or she does not fill extremly complicated forms in their language?

Answer yes.

 Is this discrimination?  

Here we go again model 720 will be discussed at length again

A bit of an odd first post for a new member

Seppo 

Welcome 

Suggest you use the search function as this has been discussed many many times on EOS

Yes, I know, old post.

That time of year again and the 720 declaration of foreign assets to be completed. Now, I thought this was going to be scrapped under the EU rules? Still getting a warning that failure to declare or finding not fully declared could incur a charge of 52% of all assets plus a €10,000 fine for each part.

I was under the impression that the EU had delared this illegal or onerous or something or other.

We don't have anything not declared but transferring money to our Spanish account so as not to exceed the extra 20 grand in a year is a pain. We also bought a new car this year so we are declaring a non increase. 

Just wondered if this thing was still going especially as our solicitors have informed us they charge €80 to submit the declaration if anything has changed.

Friends of ours in France have informed us they have to do the same thing at the same time as income tax returns and their fines have been increased to 80% for late filing and a minimum €1500 fine (with no limit) for not declaring it all.

Is the EU a bit toothless on this? 

We don't have anything not declared but transferring money to our Spanish account so as not to exceed the extra 20 grand in a year is a pain.

Hi mariedav....can you flesh this out a little?

If any of your sections rise more than €20,000 since your last declaration, you have to fill in the form 720 again.
So if your savings or propery rises above that since the last declaration then the 720 must be complete and resubmitted. 

Since we have spent virtually nothing during the lockdown period that is very easy to do as my NHS and state pension (paid to UK) exceeds that amount. Buying a car and transferring money, for us, alleviated the necessity to do so. The difference in exchange rate can also up the amount considering it was about 1.13 in Jan last year but 1.20 this Jan.

I was, though, more interested in the EU saying the Spanish fines were out of proportion but nothing being done about it.

Thank you. My wife and I have to submit this form for the first time this year. The examples of King Carlos, Rajoy, the PP...all the bribery, kickbacks with non disclosed bank accounts all over the world, not to mention Senor Barcenas and his brown envelopes....doesn't imply the regime is very heavily policed.

Again, thanks for the response.....Guy

Make sure everything with an IBAN number goes under the banking bit regardless of if they are current accounts, savings accounts, savings bonds or whatever.

I posted on here some time ago about an elderly couple who were being threatened with a 4 grand fine for not declaring a fixed rate savings bond under banking and thought they came under the third section of bonds, interest etc. Because the account had an IBAN it should have gone under the money in bank accounts.

Fortunately, and quite surprisingly, the tax people agreed it was an honest mistake and cancelled the fine for them. I was rather surprised by that.

You don't need to complete a new 720 each year unless the value under one of the categories increases by €20,000 or if you close one of the accounts. Simply a nothing to declare form. 

Interestingly the EU Court of Justice has just declared the 720 against EU law and slated it as disproportionate. 

"The national legislation that obliges tax residents in Spain to declare their assets or rights abroad is contrary to Union law and it goes beyond what is necessary to achieve objectives."

It said that the fines on those who do not correctly declare their earnings abroad are "disproportiate", "discriminatory"  and are "in conflict with the fundamental freedoms of the EU". 

Spain must now "comply as quickly as possible" with the ruling or the EU will impose pecuniary sanctions.

Well, hopefully that's got rid of that.