Form 720 and Form D6: How do they complement each other?

In a previous post, we talked about Form D6 (declaration of investments abroad) and the people obliged to present it, and we have also commented on other occasions about various aspects of Form 720 Spain (declaration of assets and rights abroad). In this post, we want you to see how Form D6 and Form 720 complement each other.

Form 720 and Form D6: Essential features

Both models are mandatory, so they must be presented if you are in any of the cases established by law since, otherwise, they could impose a penalty.

Much has been said about Form 720 since, despite being an informative declaration, its non-presentation entails the imposition of important sanctions.

With Form 720, an attempt is made to fight against tax fraud. It should be reported on:

• Accounts and deposits in financial entities that are abroad.
• Shares, insurance, financial products, and income managed or obtained abroad.
• Real estate and rights thereon located abroad.

There will be no obligation to present Form 720 when the sum of the groups does not exceed 50,000 euros.

For its part, with Form D6, Spanish investments abroad by companies listed on the stock exchange or organized market are declared to the Registry of Spanish Investments abroad if the securities are deposited with an entity domiciled in a foreign country or remains under the custody of the investment owner.

When is Form 720 and Form D6 presented?

On January 1, the deadline for filing returns of Form 720 begins and will run until March 31.

Form D6 is presented in January of each year in the case of deposits and will refer to the status as of December 31 of the previous year. In the case of operations, the presentation must be made within a month from the operation’s completion.

What happens if you do not file them or do it after the deadline?

Both forms are mandatory, so they must be presented if you are in any of the cases established by law since, otherwise, they could impose a penalty.

In the case of Form D6, the penalty for not presenting it could be up to 25% of the undeclared amount, with a minimum of 3,000 euros.

If Form D6 is presented after the deadline, the penalty can be between 300 and 600 euros, depending on how long it takes to file the return.

In the case of Form 720 Spain, in the case of non-declaration, the sanction can be 150% of the personal income tax and 5,000 euros for each piece of information or data set, with a minimum of 10,000 euros. If you declare after the deadline, the penalty is 100 euros for each piece of information, with a minimum of 1,500 for each group of goods.