Who must file the information return
Individuals and legal entities living or based in Spain, who have assets or rights abroad must file this information return.
Assets or rights that must be declared
The assets or rights have been broken down into the following categories or blocks of information:
- Accounts in financial institutions located abroad.
- Securities, rights, insurance and income deposited, managed or obtained abroad.
- Real estate and rights on realty located abroad.
Obligation to file the return
- In general, the form 720 must be filed, when all the balances together or the securities exceed €50,000. This limit is applicable to each of the aforesaid blocks separately.
- If the form 720 has been filed in a previous year, it only has to be filed for the fiscal year 2019 in one of the following circumstances:
- The total value of the assets or rights of each one of the categories of assets, which are taken into account separately, has increased by more than €20,000 compared to the amount declared previously.
- When the interested party is no longer the holder, designated party, representative, etc., of the assets and rights declared previously.
The deadline to file form 720 for the financial year 2019 is the 31st of March, 2020.
If the information return is not filed, even though this is mandatory, the penalty will be imposed, which consists in a fixed monetary fine of €5000 for each piece of information or set of data that should have been provided in the return but is missing, or which has been provided but is incomplete, inaccurate or false, the minimum is €10,000.
The fine will be €100 for each piece of information or set of data, with a minimum of €1500, when the information return has been filed after the deadline, if this hasn’t been approved beforehand by the Spanish Tax Agency.
NB: Legal entities do not have to file the form 720 when the assets or rights located abroad have been separately registered in their accounts and completely identified. If you think that you should file form 720, please get in touch with us as soon as possible.