Editor’s note: This article was first published in April 2013, and explains Spain’s form 720 procedure and rules as of the 2012 tax year. The rules have since changed: the EU Court of Justice ruled in January 2022 that the penalty regime was disproportionate, and Spain amended the law later that year.
Given the questions arising about form 720 (Modelo 720) for the 2012 tax year, Aspain11 Asesores Financieros EAFI, a Spanish financial advisory firm, explains everything you need to know about it.
What is form 720?
Form 720 was approved on 29 October 2012 as part of the amendment of tax and budget regulations and the adaptation of financial regulations to step up efforts to prevent and fight fraud, and it applies to the information return for the 2012 tax year.
It is an information return on assets and rights located abroad, and its purpose is to:
- Report accounts held with financial institutions located abroad.
- Report securities, rights, insurance and income deposited, managed or obtained abroad.
- Report real estate, and rights over real estate, located abroad.
Who has to file it?
The following are required to file form 720: individuals and legal entities resident in Spain, permanent establishments in Spain of non-resident persons or entities, and the entities referred to in article 35.4 of Law 58/2003 (Spain’s General Taxation Act).
Holders, representatives, authorised persons, beneficiaries, persons or entities with powers of disposal, and beneficial owners must report accounts with financial institutions located abroad; securities, rights, insurance and income deposited, managed or obtained abroad; and real estate, and rights over real estate, located abroad.
- There is no obligation to report any assets in a group whose combined value does not exceed 50,000 euros.
- In subsequent years, only groups whose value has increased by more than 20,000 euros since the last return filed need to be reported.
How to fill in form 720
- Form 720 must be filed online, over the Internet.
- The Agencia Tributaria website (Spain’s tax agency) sets out the steps to follow and offers some video tutorials.
Steps to complete it
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The filer goes to the Agencia Tributaria website and selects form 720, the information return on assets and rights located abroad. They then submit the return with the electronic signature generated by selecting the certificate previously installed in the browser for that purpose.
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If the return is accepted, the Agencia Tributaria displays on screen the type 1 record data, validated with a 16-character secure verification code, along with the date and time of filing.
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The filer must keep the accepted return (form 720) together with the type 1 record duly validated with its secure verification code.
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The Agencia Tributaria then validates the data submitted online, checking that the information matches the established specifications in line with the physical and logical designs.
Who can file it?
Form 720 can be filed online either by the filer or by a third party acting on their behalf.
Requirements for filing
- A tax identification number (NIF).
- A digital certificate issued by the Fábrica Nacional de Moneda y Timbre (the Spanish Royal Mint), an electronic national ID card (DNI electrónico) or any other electronic certificate accepted by the tax agency.
Useful links
- Agencia Tributaria website
- How to use the electronic ID card (DNIe)
Featured image: Zarateman, CC0 1.0, via Wikimedia Commons.
