Modelo 100 – Income Tax Return

This is the twenty-fifth year that we at Global Accounting have been helping Swedes declare their income in Spain and Sweden. If you are a resident in Spain, you must declare all your worldwide income for the tax year 2023. The Spanish tax return is submitted during the period of May-June 2024.

To assist you with the tax return, we need information about pensions, stock dividends, securities transactions, interest income, salary income, board fees, and any other income. We also need to know which bank account you want any refunded tax, paid in Sweden, to be deposited into, and from which bank account in Spain the Spanish tax should be deducted. It’s important to remember that you no longer receive income statements from Sweden; instead, you must retrieve these statements yourself and forward them to us. You can find income statements on the payers’ websites. Certain expenses can be deducted from income. These deductions mainly concern costs for dependent children, dependent retired parents, family member’s disability, interest and amortization on housing under certain conditions, and paid rent, also under certain conditions.

Spouses are free to decide whether they want to be taxed separately or jointly.

If you owe additional tax, either 100% of the remaining tax must be paid by June 30th, or 60% by June 30th and the remaining 40% by November 7th. You can decide which of these two payment options you prefer. For those who have received Swedish pension that has been SINK-taxed, we assist with the application for refund of double-paid tax.

If you are filing a tax return for the first time as a resident in Spain, you need a digital signature. Contact us and we will order it for you.

If you need help with your Swedish tax return, we are also happy to assist with that. If you want help from us at Global Accounting, you can email the documentation or book a meeting. Preferably by April 10th to guarantee it’s done on time.

Modelo 714

It’s time to declare your wealth, both in and outside of Spain, as of December 31, 2023. The wealth declaration should be made during the period from May to June 2024 on form 714. The wealth tax has been removed from the 2022 income year on assets up to 3,000,000 euros, but the declaration should still be made with a 100% tax deduction for wealth up to 3,000,000 euros. For wealth from 3,000,000 euros and above, tax should be paid, according to a new decision on December 27, 2022. This applies to both resident and non-resident individuals.

The declaration is made individually, which means that spouses are taxed separately and taxed on their own part. It’s important to note that if you have assets of 700,000 euros or more, you should contact us to analyze your situation (the threshold amount may vary between different autonomous communities).

You are welcome to send all documentation to us via email or visit our office so we can prepare the wealth tax return in good time.

Modelo 718

Do you have wealth of 3,000,000 euros or more? Then you may need to declare in modelo 718. Modelo 718 is a wealth declaration that is made during the period of July 2023.

The declaration is made individually, which means that spouses are taxed separately and taxed for their own part. It is important to note the value of the property; if the value is 2,000,000 euros or more, you should contact us to analyze your situation (the threshold may vary between different autonomous communities).

You are welcome to send all documentation to us via email or visit our office so we can prepare the wealth tax return in good time.

Modelo 720

It’s time to submit form 720, which is information about the assets you have outside of Spain that exceed 50,000 euros. The information refers to the situation as of December 31, 2023, and must be presented to the Spanish Tax Agency no later than March 31, 2024. Assets abroad are divided into three areas: liquid assets (bank funds), securities, and real estate that you owned as of December 31, 2023. If any of these three groups individually exceeds 50,000 euros, there is an obligation to declare the asset.

For example, if you have 20,000 euros in cash at SEB and stocks in Sweden worth 35,000 euros, you don’t need to present this form. However, the form should be presented if you have, for example, 30,000 euros in cash at SEB and 30,000 euros in cash at Swedbank. The value to be reported in the form is the market value of the assets.

If you have previously submitted form 720 to the Spanish Tax Agency, you only need to declare again if the total value of your assets in any of the three groups has increased by at least 20,000 euros. If you have disposed of any asset, you should also provide this information through form 720, even if you have done so before.

Form 720 has led to major discussions due to its overwhelming and disproportionate sanctions for failure to submit and late presentation of the form. The European Commission has, because of this, sued Spain in the EU Court of Justice as they consider the sanctions to be discriminatory and disproportionate. Until the matter is resolved, form 720 remains in effect.

We at Global Accounting can compile and present the information form to the Spanish Tax Agency on your behalf. For us to do this, we need to have all documentation regarding your assets by March 15th at the latest.

You are welcome to contact us via email, phone, or visit our office.

+34 952 82 82 52

revisorn@globalaccounting.es