Modelo 720: declaring overseas assets

Overview

Modelo 720 is an informational return Spanish tax residents use to declare assets held outside Spain above certain thresholds. It doesn't itself charge tax — it's a disclosure requirement, though it does inform what the Agencia Tributaria already knows about your foreign assets.

Requirements

• Applies to Spanish tax residents with foreign assets above the relevant thresholds — it doesn't apply to non-residents

Step-by-step process

• Check whether you cross the €50,000 threshold in any of three separate asset categories: foreign bank accounts, foreign securities/investments/insurance/annuities, and foreign real estate — the threshold applies separately to each category, not to their combined total
• If you cross a threshold in any category, declare the relevant assets in that category, and any others you hold, even if below €50,000 once you're required to file
• File within the window — for assets held as of 31 December of the previous year, the filing period generally runs from 1 January to 31 March
• In later years, only file again if the value of a previously-declared category increased by more than €20,000, or if you acquired or disposed of assets in a way that changes your reporting obligation

Required documents

• Statements or valuations for all foreign accounts, investments and property as of 31 December

Common mistakes

• Assuming the €50,000 threshold applies to your combined foreign assets — it applies separately to each of the three categories
• Not realising that once you've filed, you generally only need to re-file when a category's value increases by more than €20,000, not every single year regardless of change

Practical tips

• The penalty regime for Modelo 720 was significantly reformed after a European Court of Justice ruling found the original penalties disproportionate — current penalties for late or incorrect filing are considerably lower than under the original rules, but late filing still carries a real cost, so it's still worth filing on time
• This is a purely informational filing with no tax due directly from it — but it can prompt questions about whether income or gains from those assets have been correctly declared elsewhere, so keep your other filings consistent with what you declare here

How Tuchati can help

If you're not sure whether your overseas accounts or property mean you need to file Modelo 720, Tuchati can help you understand the thresholds for your situation.