Resident taxpayers who have assets located outside of Spain may be subject to a reporting obligation (Form 720).
For the purpose of this reporting obligation, the return is divided into three different groups of information: (i) Bank Accounts (ii) Investments and (iii) Properties.
As a general rule, and individual is subject to this reporting obligation in the following situations:
- When the value at December 31st, of any of the three groups is more than 50.000 euros.
- After the first obligation, when there is a cancellation or an increase in the value of any of the groups of 20,000 euros or more, or if any of the groups not reported in previous years reaches the 50,000 euro threshold.
Among others, the following will be required to file this return:
- Individuals resident in Spanish territory, unless they have been granted with the Special Regime.
- Communities of assets and inheritances.
- Real owners of the assets at any time of the year to which the declaration refers.
- The holders, representatives, authorized, or beneficiaries of financial accounts located abroad, or
- those who have had disposition powers over them, or who have been real holders, at any time of the year to which the declaration refers.
This return is informative and no payment will arise at the time of filing. However, the penalty regime for not filing or late filing is very strict and may lead significant penalties.
In addition to the possible penalties for the not filing or late filing, all those assets and rights that the taxpayer is required to report, which are informed late, may be included as an unjustified capital gain for Personal Income tax purposes.
The deadline for submission is from January 1 to March 31 following the end of the corresponding year. Electronic filing is mandatory for this tax return.