Model 720 is an informational declaration that tax residents in Spain must submit to report their assets and rights located abroad. This obligation was created by the Tax Agency to combat tax fraud and obtain detailed information about taxpayers’ wealth outside of Spain.

If you have assets outside the country, it is important to understand who is required to submit it and the consequences of not doing so correctly.

 

More information

 

What is Model 720?

Model 720 is an informational declaration that includes the assets and rights of taxpayers who are residents in Spain but located abroad, such as:

  • Real estate: properties located outside Spain.
  • Bank accounts: balances of accounts or financial products abroad.
  • Securities and financial assets: shares, funds, insurance, etc., located outside Spain.

The applicable regulations governing Model 720 are two specific orders: Order HAP/72/2013 and Order HFP/1180/2023.

Who is required to submit Model 720?

The obligation to submit this model applies to tax residents in Spain who, in the fiscal year, have assets outside Spain’s borders.

Key requirements for submitting it:

  • Real estate: If the total value of the properties exceeds €50,000.
  • Bank accounts: If the average balance abroad exceeds €50,000.
  • Other financial assets: If the total value exceeds €50,000.

If your assets or accounts abroad exceed these thresholds, you will be required to submit Model 720. Additionally, what happens after the first year? If you have already submitted Model 720 once (because you exceeded the €50,000 threshold), you only need to submit it in the following years if the balance of any information category increases by more than €20,000 compared to the value declared in your last filing.

 

When and how is Model submitted?

The deadline for submitting Model 720 is generally March 31 of the year following the year to which the declaration refers.

Steps to submit Model:

  1. Access the Tax Agency’s electronic platform.
  2. Fill out the form with detailed information about your assets and rights abroad.
  3. Sign and submit the declaration.

The submission process is completely online and does not require any tax payment, as it is purely informational.

 

Consequences of not submitting Model 720

Failing to submit Model 720 can have serious consequences, as the Tax Agency imposes heavy penalties.

Penalties for not submitting Model:

  • Fixed fine of €5,000 for each piece of data or set of data omitted, with a minimum of €10,000.
  • Proportional fines: The penalty percentage may vary depending on the type of undeclared asset, reaching up to 150% of the undeclared amount.

Additionally, the prescription for this obligation extends to 10 years, which means the Tax Agency can review the last 10 years of your declaration if Model 720 has not been submitted.

 

How to avoid penalties for Model 720?

To avoid problems with the Tax Agency, we recommend:

✅ Submit Model 720 on time.
✅ Review the data before submitting it to avoid errors or omissions.
✅ Consult with a specialized tax advisor to guide you through the process and avoid penalties.

 

✅​ Need help with Model 720?

At Adlanter, we have a team of tax experts who can help you fulfill the Model 720 obligation, ensuring that all information is correctly submitted and avoiding potential penalties.

📞 Contact us and we will assist you in fulfilling all your tax obligations efficiently.

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