If you are a resident in Spain and own assets or rights abroad, it is important to be aware of your obligation to report them using Modelo 720. This declaration must be submitted within the established deadline, which runs from January 1 to March 31, 2025. Below, we provide all the necessary information to comply with this requirement.
What is Modelo 720?
Modelo 720 is an informative declaration that must be filed by individuals and legal entities residing in Spain who own certain assets and rights abroad, provided they exceed the thresholds established by law. Its main purpose is to combat tax fraud and ensure that the Spanish tax authorities have a proper record of assets located outside the country.
Who is required to file Modelo 720?
All residents in Spain who, as of December 31, 2024, or at any time during the year, meet any of the following conditions:
- Bank accounts: Being the owner, representative, authorized user, or beneficiary of bank accounts in foreign entities, or having disposal power over them.
- Securities, rights, insurance, and annuities: Holding securities, rights, life or disability insurance policies, or annuities abroad.
- Real estate: Owning real estate or rights over real estate located outside Spain.
What assets and rights must be declared?
The obligation to declare arises when assets and rights abroad exceed the following economic thresholds:
- Bank accounts: If the balance on December 31, 2024, or the average balance of the last quarter of the year, exceeds €50,000.
- Securities, rights, insurance, and annuities: If the total value of these assets on December 31, 2024, is over €50,000.
- Real estate: If the value of real estate or property rights exceeds €50,000.
Deadline for submitting the declaration
The declaration for the 2024 fiscal year must be submitted between January 1 and March 31, 2025. If technical issues prevent submission within this period, the Tax Agency grants an additional four calendar days.
When must you file Modelo 720 again?
If you have already submitted Modelo 720 in previous years, you are only required to file it again in 2025 if:
- The balances or values previously declared have increased by more than €20,000.
- You are no longer the owner, authorized user, representative, or beneficiary of the previously declared assets or rights.
Complying with this obligation is crucial to avoid possible penalties. If you need more information or professional advice, consult a tax expert to ensure your declaration is accurate and complete.
