Modelo 720: Foreign Assets
Declaration requirements for Spanish residents with overseas assets.
What is Modelo 720?
Modelo 720 is an informative declaration that Spanish tax residents must file to report assets held outside Spain. It's not a tax payment - it's a disclosure requirement. You can file it online through Agencia Tributaria.
The form was introduced in 2012 to combat tax evasion. While controversial (the European Court ruled its penalties excessive), the filing obligation remains.
You only need to file if your overseas assets exceed €50,000 in any of the three categories: bank accounts, securities/investments, or real estate.
The Three Categories
Category 1 - Bank accounts: All accounts at foreign banks where you're a holder, authorized signatory, or beneficiary.
Category 2 - Securities and investments: Shares, funds, bonds, insurance policies with cash value, annuities held abroad.
Category 3 - Real estate: Property and property rights located outside Spain.
Each category is assessed independently. If you have €60,000 in foreign bank accounts but only €30,000 in foreign property, you only declare the bank accounts.
When to File
Initial filing: If you reach the €50,000 threshold in any category as of December 31, file by March 31 of the following year.
Subsequent years: Only file again if there's been a change of more than €20,000 in any previously-declared category since your last filing.
No need to re-file unchanged assets each year - only material changes trigger new filing obligations.
What Information is Required?
Bank accounts: Account numbers, bank name and address, balance as of December 31, average balance during the year.
Securities: ISIN codes where applicable, number of shares/units, value as of December 31, entity holding the assets.
Property: Address, acquisition date, purchase price, percentage ownership, valor catastral if available.
Penalties
The original penalty regime (up to 150% of undeclared assets) was struck down by the European Court of Justice in 2022.
Spain has since reformed the penalties to align with EU law. Current penalties are more proportionate but filing remains mandatory.
Non-filing can still result in fines and increased scrutiny of your tax affairs. It's not worth the risk.
Common Questions
UK assets post-Brexit: Still reportable - the UK is now outside the EU but assets there are still 'foreign' for Spanish purposes.
Joint accounts: Report the full balance but indicate your percentage ownership.
Cryptocurrency: Currently in a gray area - the Catastro has suggested it should be declared but specific guidance is evolving.
Disclaimer
This guide is for informational purposes only and does not constitute legal, tax, or financial advice. Tax laws and regulations in Spain may change, and individual circumstances vary. We accept no liability for decisions made based on this information. Always consult with a qualified tax professional for advice specific to your situation.