Form 720: Annual informative declaration on assets and rights located abroad

We remind you that the deadline for submitting Form 720, the annual informative declaration on assets and rights located abroad for the 2023 financial year, ends on April 1, 2024. Do not leave this critical obligation until the last minute.

Natural and legal persons resident in Spanish territory, permanent establishments in said territory of non-resident persons or entities and the entities referred to in article 35.4 of the LGT (recumbent inheritances, communities of property, etc.) must supply the Tax Administration, except in some instances or exemptions, the following information:

Information on accounts located abroad opened in entities dedicated to banking or credit traffic of which they are owners or beneficiaries or in which they appear as authorised or in some other way have the power of disposal.
Information on securities or rights representing participation in the capital or own funds of any legal entity, on securities representing the transfer of own capital to third parties, on securities, contributed for their management or administration to any legal instrument, including trusts and “trusts” or assets that, despite lacking legal personality, can act in economic traffic, and on the shares and participations in the social capital or equity fund of collective investment institutions, of which they are owners and are deposited or located abroad, as well as the life or disability insurance of which they are policyholders and the life or temporary annuities of which they are beneficiaries as a result of the delivery of capital in money, movable or immovable property, contracted with entities established abroad.
Information about real estate and rights over real estate owned by you located abroad.

These obligations extend to those who are considered real owners by article 4.2 of Law 10/2010 on the prevention of money laundering and the financing of terrorism, also including representatives, authorised persons, beneficiaries or persons with power of disposition.

There will be no obligation to report on any account when the balances as of December 31 do not jointly exceed €50,000, and the same circumstance applies to the average balances of the last quarter. This quantitative limit also applies to the assumptions mentioned in sections b) and c).

The presentation of the declaration in subsequent years will only be mandatory:

When any of the joint balances as of December 31, or the average balance, had experienced an increase of more than €20,000 compared to those that determined the presentation of the last declaration. This quantitative limit also applies to the values in sections b) and c).
In cases of “cancellation/transfer” of any of the assets in sections a), b) or c) reported in previous years.

When transferring accounts or securities to Spain, there is no obligation to inform as long as this does not imply the cancellation of their status as owners or real owners.

The regulations establish a regime of infractions and sanctions, including monetary fines, related to non-compliance with these information obligations, reaching €20,000.