For those of you who were tax residents in Spain in 2019

It is time to submit form 720, which is information about the assets you have outside Spain exceeding 50,000 euros. The information pertains to the situation as of December 31, 2019, and must be submitted to the Spanish tax authorities by March 31, 2020. Foreign assets are divided into three categories: liquid assets (bank funds), securities, and real estate owned as of December 31, 2019. If any of these three categories individually exceed 50,000 €, there is an obligation to declare the asset.

For example, if you have 20,000 euros in cash at SEB and shares in Sweden worth 35,000 euros, you do not need to submit this form. However, the form must be submitted if, for example, you have 30,000 euros in cash at SEB and 30,000 euros in cash at Swedbank. The value to be reported on the form is the market value of the assets.

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

Form 720 has caused significant discussion due to its overwhelming and disproportionate sanctions for failure to submit or late submission of the form. The European Commission has sued Spain in the EU Court of Justice because they consider the sanctions to be discriminatory and disproportionate. Until the matter is resolved, form 720 applies.

We at Global Accounting can compile and submit the information form to the Spanish tax authorities on your behalf. To do this, we need to have all documentation regarding your assets by March 10 at the latest.

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