Remarks on the Spanish Form 720 for assets and rights abroad.

As you probably know, compliance with the obligation to report on securities, rights, insurance and income deposited, managed and obtained abroad is done by filing an annual information return (Spanish Form 720) relating to the securities, rights, insurance and income deposited, managed or obtained abroad of which you are the holder at 31 December of each year, or at any time during the year to which the report refers, if you no longer have such status at the end of the year, although there are some?remarks on the?Spanish Form 720 for assets and rights abroad?that you should bear in mind.

The following are some of the remarks on the?Spanish Form 720?for assets and rights abroad that you should bear in mind when submitting your information declaration:

1. You must report your current account balances using the appropriate?exchange rate, corresponding to the information to be reported. You should also be clear about the exchange rate to be applied in case you cease to hold your bank account during the year, but there is an obligation to file the Spanish Form 720.
2. If you are unable to obtain the average balance of your bank account because, for example, your bank abroad does not provide it, which is unfortunately common, you should be aware that this is not considered an impediment by the Spanish Tax Agency that justifies non-compliance with your obligation to file a tax return.
3. If you have a credit card that is associated with a bank account where you are allowed to make deposits that are remunerated, you must also declare it in the?Spanish Form 720.
4. If you have a global account in which different assets are included, you must declare all of them, as they may constitute assets that are subject to different reporting obligations.

Example:

If two individuals resident in Spain (John and Maria) hold a foreign bank account with a balance of 160,000 euros on 31 December, where John owns 70% (112,000 euros) and Maria 30% (48,000 euros), then each individual must file an information declaration, reporting an account with a balance on 31 December of 160,000 euros, indicating their 70% and 30% share respectively in that account on?Spanish Form 720.

If you need to declare your assets and rights abroad, using the?Spanish Form 720, at?Perez Parras Economists and Lawyers?we are experts in?International Tax Law.?Contact us?so that we can help you, give you a quote and make your declaration of assets abroad correctly, avoiding the penalties that any type of error in the?Spanish Model 720?entails. Our professional team, with offices in the centre of?Malaga?and in?Nerja, is made up of?lawyers with double degrees in Law and Economics,?bilingual and experts in national and international?taxation, for residents and?non-residents.