{"id":18581,"date":"2019-03-15T12:05:42","date_gmt":"2019-03-15T11:05:42","guid":{"rendered":"https:\/\/etl-ilia.es\/general\/modelo-720-y-patrimonio\/"},"modified":"2024-07-23T13:08:28","modified_gmt":"2024-07-23T11:08:28","slug":"model-720-heritage","status":"publish","type":"post","link":"https:\/\/etl-ilia.es\/en\/form-720-spain\/model-720-heritage\/","title":{"rendered":"Model 720 and Heritage"},"content":{"rendered":"

MODELO 720<\/a><\/p>\n<\/div><\/div><\/div><\/div><\/div>\n

Do you reside in Spain but have assets or assets abroad? Do you know the Model 720?<\/strong> In this article, we give you all the details so that you know what you must declare, how and what can happen if you do not present this model.<\/p>\n

In 2012, the General Tax Law was modified by Law 7\/2012, and the need to report on assets and rights located abroad using Form 720 was introduced. The objective of the change was to fight against fraud.<\/p>\n<\/div><\/div><\/div><\/div><\/div>

Form 720 and assets abroad: what should you declare?<\/h2>\n

You will have the obligation to present Form 720 in three different cases:<\/p>\n

    \n
  • When you have accounts in financial institutions located abroad.<\/strong> For example, you have an amount deposited in a bank account in Argentina.<\/li>\n
  • When you own securities, rights, insurance or income deposited, managed or obtained abroad<\/strong>. For example, you own several shares in a company located in Germany.<\/li>\n
  • When you own properties located abroad or rights over said properties. <\/strong>For example, you have a home in Paris (France).<\/li>\n<\/ul>\n

    Who must present Form 720?<\/h2>\n

    You will have to submit the declaration on assets and rights abroad when:<\/p>\n

      \n
    • You have submitted it previously, and there has been an increase of 20,000 euros in one of the categories detailed in the previous section.<\/li>\n
    • You exceed the limit of 50,000 euros in any of the categories.<\/li>\n
    • The ownership of an asset or right that you have reported in a previous declaration is extinguished.<\/li>\n<\/ul>\n

      What is the deadline to submit Form 720?<\/h2>\n

      The obligation to present Form 720 must be fulfilled between January 1 and March 31 of the year following the year to which the information that appears in the declaration refers.<\/p>\n

      What happens if you do not present Model 720?<\/h2>\n

      One of the most important controversies that implementing Form 720 entailed was that despite being an informative declaration, quite high penalties are regulated for non-submission or submission after the deadline.<\/p>\n

      If you are obliged to present the declaration for the three obligations that we have seen and you do not do so, a penalty of 30,000 euros could be imposed, and if it is only with respect to one of the obligations, the penalty may be 10,000 euros.<\/p>\n

      Suppose you submit Form 720 voluntarily, even after the deadline. In that case, the sanctions will be lower, but if you do so because you have received a request from the Tax Agency, additional surcharges may be imposed.<\/p>\n

      What can you do to know if you should file Form 720 and do it on time?<\/h2>\n

      If you have doubts about whether or not you should present Form 720, you must consult a tax expert who can tell you whether there is an obligation. In addition, it will help you avoid errors and penalties and reduce your tax burden.<\/p>\n<\/div><\/div><\/div><\/div><\/div>