If you are a tax resident in Spain and own assets or rights abroad, you may be required to submit Form 720 before March 31, 2025.
Find out who must file, which assets need to be declared, and the possible penalties for non-compliance.
1 Who Must File Form 720?
The obligation applies to:
Individuals and legal entities residing in Spain.
Permanent establishments of non-residents in Spain.
Entities with income attribution, such as civil partnerships, communities of goods, and estates in abeyance.
Owners, beneficiaries, authorized persons, or representatives of foreign assets exceeding €50,000 per asset category.
2 What Assets and Rights Must Be Declared?
Form 720 requires reporting on:
Foreign Bank Accounts
Name and address of the financial institution.
Account identification, balance as of December 31, and average balance for the last quarter.
Account opening or closing dates.
Investments, Securities, Insurance and Annuities
Stocks, mutual funds, bonds, and other financial assets.
Rights related to capital transfers to third parties.
Life insurance policies with a surrender value.
Temporary or life annuities, including insurer details and capitalization value.
Real Estate and Property Rights
Property identification (country, address, registration number).
Date and value of acquisition.
Type of ownership (full ownership, usufruct, bare ownership, etc.).
3 When is Form 720 Mandatory?
If any asset category exceeds €50,000.
If you previously filed Form 720 and the value of your assets increased by more than €20,000.
If you lost ownership or authorization over previously declared assets.
4 How to Submit Form 720?
Online filing is mandatory via the Spanish Tax Agency’s website. In case of technical issues, a four-day extension is allowed after the deadline.
5 Penalties for Non-Compliance
Following a 2022 European Court of Justice ruling, disproportionate penalties were eliminated.
However, general penalties still apply for errors or late submission:
Fines of €100 per incorrect or missing entry (minimum €1,500).
In serious cases, Hacienda may classify undeclared assets as unjustified capital gains, taxing them at the highest applicable IRPF or Corporate Tax rate.
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