- Declaration of assets abroad - AEAT Form 720
Advice on filing form 720
Head of the firm
Filing the correct form 720 with expert supervision
With more than 30 years of experience advising on international taxation in Malaga, we understand that the 720 tax form, the declaration of assets abroad, represents a significant challenge for many taxpayers. The complexity of correctly reporting assets and rights located outside Spain gives rise to uncertainty and concerns about the possibility of making mistakes. At Pascual Asesores, we prioritise your interests and seek to protect you from possible sanctions.
The assistance of a professional advisor in the preparation of the 720 tax return is essential to avoid mistakes and ensure compliance, making the most of tax planning opportunities. It is crucial to recognise that the legislation relating to foreign asset declarations is complex and subject to changes, which may go unnoticed by the ordinary taxpayer. With the support of a specialised advisor, significant tax optimisation can be achieved, avoiding costly penalties and ensuring peace of mind.
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Advice on declaring assets abroad
Frequently asked questions about Form 720
Form 720 is an informative declaration (No payment required) on assets and rights located abroad, which must be filed by individuals and legal entities resident in Spain with the State Tax Administration Agency (Agencia Estatal de Administración Tributaria, AEAT).
This declaration is compulsory for those who own or hold assets abroad whose combined value exceeds 50,000 euros.
- Accounts in financial institutions located outside Spain: Any account in which the taxpayer is the holder, representative, authorised or beneficiary, or in which he/she has powers of disposal, must be reported.
- Securities, rights, insurance and annuities:This includes shares, debentures, equity securities of any type of entity, as well as rights to any type of life or disability insurance, or temporary or life annuities of which they are holders as a result of the delivery of capital in cash, movable or immovable property.
- Immovable property and rights over immovable property located abroad: This refers to any immovable property or real right (such as usufruct) over property located outside Spain.
Form 720 must be filed in the first quarter of the year, i.e. between 1 January and 31 March, in respect of the information for the previous tax year. Therefore, taxpayers who are obliged to report assets and rights located abroad the combined value of which exceeds 50,000 euros in any of the specified categories (accounts with financial institutions, securities, rights, insurance and annuities, and real estate and rights to real estate located outside Spain) must comply with this obligation within that period.
It is important to bear in mind that this declaration is for information purposes and its filing is carried out telematically through the website of the State Tax Administration Agency (AEAT). In addition, it is only necessary to file form 720 again in subsequent years. if new goods are acquired or rights that meet the criteria for declarationor if the value of those already declared is increases by more than 20,000 euros with respect to those previously declared.
Failure to deliver this model has two types of severe repercussions:
Penalties for non-declaration.
- Penalty of €5,000 for each missing, incomplete, inaccurate or false item of information or set of information, with a minimum penalty of €10,000.
- Penalty of €100 for each item of data or set of data, with a minimum penalty of €1,500, in cases where the declaration is made after the established deadline without a prior request from the Tax Administration.
