Form 720 Spain: frequently asked questions
We’re here to help you with all your queries regarding Form 720 Spain
Two or three obligations within the same form
Yes. You can use one form to declare two or three types of blocks of assets, without having to submit a new Form 720 Spain for each one.
Submission date
If in comparison to last year’s form there has been an increase of more than 20,000 euros regarding the combined limit for each block, then you have to submit the form again this year. If the increase is less than 20,000 euros or there is a decrease, you won’t have to submit it again.
If your Form 720 Spain is made up of several blocks, you only have to resubmit the block that meets the condition mentioned above.
Valuation of rights and assets
These must be valued according to the balance at 31 December. However, you will come across certain exceptions, so it’s best you talk to our experts to be sure.
This will depend on whether the securities representing your holding in a company’s share capital or own funds are traded on an organised market or not. The AEAT specifies the valuation category for each case.
The value will be the property value on the date it’s transferred to you.
No. You only need to declare the existing balances at 31 December. When you use the earnings from the sale of the securities for buying other securities or rights, these new ones will have to be declared provided they meet the relevant conditions
You must use the exchange rate on 31 December.
If you happen to be obliged to declare the current account that has been closed, the balance will be converted at the exchange rate on the day it is closed.
You must use the exchange rate on 31 December of the year you are declaring.
Yes. You will have to take into account these exchange rate increases, except when they affect real estate.
Real estate value is determined by the exchange rate on the purchase date and is exempt from subsequent changes due to exchange rate fluctuations.
The purchase date will be when you gain full ownership. The purchase value is the result of calculating the value of the initial real right and the value of consolidating the ownership.
You must declare the percentage of your holding, grossing up the purchase value. If you don’t know the purchase value paid by the rest of the owners, the full value may differ for each owner, in which case some of the owners may have to declare it and others may not.
Yes. The purchase price should include all expenses strictly related to buying the property and the related taxes.
Individually. You must report these individually as these assets could entail different obligations and would therefore be included in different blocks.
Obligation to submit
Yes. It must be declared regardless of the number of account holders provided you are not exempt from the obligation. You must declare the total value and indicate your ownership percentage.
Yes. It must be declared regardless of the number of joint owners provided you are not exempt from the obligation. You must declare the total value and indicate your ownership percentage.
This will depend on the type of asset.
In the case of securities, rights, insurances and income abroad, you must declare them in Form 720 Spain regardless of whether they are registered in your accounting records.
For real estate and bank accounts abroad, you don’t have to include them in Form 720 Spain when they are registered in your accounting records.
No. Legal entities don’t have to additionally declare any of the three blocks of assets and rights in their Form 720.
Yes. You must report your 30% ownership of a bank account abroad with a 150,000 euro balance.
Yes. The Tax Agency requires that you report all authorisation revocations. You must report the date of the revocation, the existing balance on that date, identify the account and business or company name of the bank and its address.
No. Regardless of why you are not obliged to submit this form, you are not required to inform that you no longer own an asset.
Yes. You must declare any income you collect.
Yes.
Yes. You are obliged to provide an informative statement regardless of whether the account balance is less than 50,000 euros.
Yes. You must submit Form 720 Spain, unless the institution is considered a tax resident in Spain and, therefore, this information has already been provided.
The rest of the real owners will be obliged to submit it depending on whether they meet the provisions of the regulation.
Yes. Except in the cases in which the regulation waives this requirement.
No, given that in this case you would be below the 50,000 euro limit.
Yes. Provided the property meets the requirements provided in the regulation.
No.
No.
Yes.
This depends on the type of asset, you can find more information on the AEAT website.
Yes.
Provided the requirements are met, the resident company will have to perform the informative statement using Form 720.
You must declare your stake in the company where you are a controlling shareholder.
No.
No.
Yes.
This will depend on the place of residence of the constituent, trustee and beneficiaries.
Yes. In this case, the only companies that are exempt from submitting Form 720 Spain are those that voluntarily maintain accounting records.
Yes.
No.
As the holder.
You have to declare the investment fund and the bank account.
No.
Yes, and you should declare the recumbent inheritance given that it is considered a company.
Yes.
No.
Yes. You must submit Form 720 Spain to indicate that you no longer own the securities you have sold.
Yes.
The form and how to fill it in
Tax code (NIF), full name or company name of the declarant, telephone number and name of the contact person.
Subkey of asset or right, key of the declarant’s status, subkey of asset or right, type key of asset or right and country code.
In relation to the company address or location of the property: country code, percentage of ownership (except in the case of an authorised party) and origin of the asset or right.
Account identification key, account code, entity identification, date of incorporation and valuations depending on the origin of the asset.
Identification of the entity, identification key, identification of the securities, valuation 1, securities representation key and number of securities. However, the need to provide some of the above will depend on the key type (V or I).
Date of incorporation, type key of the property, purchase value, transfer date, valuation 1 and 2. Yet the obligation to fill in these fields varies depending on whether it is an asset type A or C.
Yes.
Risks and penalties
The minimum penalty is 30,000 euros.
The minimum penalty is 10,000 euros.
The minimum penalty would be 20,000 euros, i.e. 5,000 euros for each error, omission or false data.
The minimum penalty would be 10,000 euros, i.e. the minimum penalty that can be imposed.
Yes. Check out our blog on regularisation.
That will depend on each particular case, the Tax Agency details and specifies each case.
The penalties for late submission vary depending on each case, check out our blog for more information.