Form 720: Informative declaration on assets and rights located abroad

Form 720 is an informative declaration through which certain taxpayers must notify the Tax Agency of their ownership, representation or availability of certain assets and rights located abroad, structured in three blocks of information.

Deadline and method of submission

• General deadline: between the 1st of January and the 31st of March of the year following that to which the information declared refers.

Persons required to submit the form

In general, the following persons are required to submit Form 720:

• Natural and legal persons resident in Spanish territory.
• Permanent establishments in Spain of non-resident persons or entities.
• Entities referred to in Article 35.4 of the General Tax Law, when the obligation to report applies.

In addition, the obligation may arise not only from being the owner, but also from holding certain positions with respect to the asset or right (e.g., representative, authorised person, beneficiary or beneficial owner, as applicable).

Assets and rights subject to reporting (three blocks)

Form 720 groups the information into three distinct categories, which must be analysed independently:

1.  Accounts in financial institutions located abroad.
2. Securities, rights, insurance and income located, deposited, managed or obtained abroad (including, among others, securities representing participation in entities, transfer of own capital to third parties, life/disability insurance with a foreign insurer and temporary or life annuities derived from the transfer of capital to entities located abroad).
3. Real estate and rights over real estate located abroad.

When is it filed for the first time?

The declaration is filed for the first time when, in any of the three blocks, the combined limit of 50,000€ corresponding to that block is exceeded (each block is valued and controlled separately).

Subsequent filings: when you must file again

Once the first Model 720 return has been filed in respect of one or more of the reporting obligations contained therein, you must only resubmit the form when, in relation to one or more of these obligations, there is an increase in the combined limit established for each block of information exceeding 20,000€ with respect to that determined in the submission of the last declaration.