Time for the Spanish 720 againTaxes Thu, 8 Jan 2015
It’s two years ago that foreigners living in Spain were first introduced to the 720 asset declaration form. In case you are blissfully unaware, the 720 is a form on which foreigners living in Spain must record assets of a specified value and type held in other countries. Over the years there has been some confusion and a great deal of suspicion about what declaring this information might lead to.
Now, two years later and the Spanish 720 is proving to be much less controversial. No longer are the free newspapers and forums flooded with questions, concerns and criticism. In fact, it’s gone extraordinarily quiet out there. However, that doesn’t mean that the requirement has gone away.
Residents in Spain who have completed a form previously, will need to reconsider at this time every year whether their circumstances have changed and whether this warrants a new form being registered.
Reasons for completing a 720 in 2015
Even if you feel pretty sure that you do not have to resubmit your form this year, do check against the list below. Keeping your 720 up-to-date is as important as submitting it in the first place. Take time to reflect, does any of this apply to you?
- There has been an alteration in your circumstances such as:
- You have purchased or sold property abroad
- Investments have matured
- You have changed account numbers
- You have cancelled previously declared assets
- Your assets have altered by 20,000€
If it does, then you should contact your fiscal representative in Spain and renew your form as soon as possible.
It’s not just where circumstances have changed that a 720 might need completing in 2015. There are still people who have not declared and perhaps on hindsight would like to ensure that they are complying with the requirement. After all, those who did have lived to tell the tale and the fine for late declaration is much less than if you’re ‘found out’.
Another group who will need to register their assets in 2015 are those who moved to Spain during 2013. You will need to complete the 720 if:
- You have accounts held abroad where the total balance of all the accounts exceeds 50,000€
- Other assets and pensions held abroad exceed 50,000€ in value
- You have a property or business premises abroad
If you’ve realised any of this applies to you, don’t panic. There is still time to complete a new form as the window runs from 1st January to 31st March. Make it your new year resolution to keep compliant in Spain.