{"id":3758,"date":"2019-12-09T16:22:27","date_gmt":"2019-12-09T15:22:27","guid":{"rendered":"https:\/\/etl-ilia.es\/uncategorized\/blog\/modelo-720-herencias-extranjero\/"},"modified":"2021-05-05T16:10:27","modified_gmt":"2021-05-05T14:10:27","slug":"form-720-inheritances-abroad","status":"publish","type":"post","link":"https:\/\/etl-ilia.es\/en\/form-720-spain\/form-720-inheritances-abroad\/","title":{"rendered":"Form 720 Spain, inheritances abroad"},"content":{"rendered":"<p><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling titulo-microsite-container\" style=\"--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap\" style=\"max-width:1248px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-flex-column\" style=\"--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:0px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;\"><div class=\"fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column\"><div class=\"fusion-text fusion-text-1 titulo-microsite\"><p style=\"text-align: center; margin-top: 28px;\"><a href=\"https:\/\/etl-ilia.es\/en\/form-720-spain\" target=\"_blank\" rel=\"noopener noreferrer\">FORM 720 SPAIN<\/a><\/p>\n<\/div><\/div><\/div><\/div><\/div>\n<div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-2 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap\" style=\"max-width:1248px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-1 fusion_builder_column_1_1 1_1 fusion-flex-column fusion-animated small-column\" style=\"--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;\" data-animationType=\"fadeInUp\" data-animationDuration=\"0.4\" data-animationOffset=\"top-into-view\"><div class=\"fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column\"><div class=\"fusion-title title fusion-title-1 fusion-sep-none fusion-title-text fusion-title-size-two\" style=\"--awb-margin-top-small:0px;--awb-margin-right-small:0px;--awb-margin-bottom-small:10px;--awb-margin-left-small:0px;--awb-font-size:20px;\"><h2 class=\"fusion-title-heading title-heading-left fusion-responsive-typography-calculated\" style=\"margin:0;font-size:1em;--fontSize:20;--minFontSize:20;line-height:1.3;\">Have you received an inheritance abroad? Do you know which taxes you have to declare?<\/h2><\/div><div class=\"fusion-text fusion-text-2 contenido-texto\" id=\"post\"><p class=\"intro\">We often look upon inheritances as a gift, but they come with important tax implications that lead to many people being forced to give up their inheritances. According to figures provided by the General Council of Notaries, as of 2007, there has been a 110% increase in people having to forego their inheritances. This is due to the high taxes to be paid when inheriting. This article explains <a href=\"https:\/\/etl-ilia.es\/en\/form-720-spain\/\" target=\"_blank\" rel=\"noopener noreferrer\">Form 720 Spain<\/a> and the implications it has on inheritances abroad.<\/p>\n<\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-3 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;\" id=\"toc\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap\" style=\"max-width:calc( 1200px + 0px );margin-left: calc(-0px \/ 2 );margin-right: calc(-0px \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-2 fusion_builder_column_1_1 1_1 fusion-flex-column fusion-animated small-column\" style=\"--awb-bg-size:cover;--awb-border-color:#5c5c5c;--awb-border-top:0;--awb-border-right:0;--awb-border-bottom:0;--awb-border-left:0;--awb-border-style:solid;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:0px;--awb-margin-bottom-large:0px;--awb-spacing-left-large:0px;--awb-width-medium:100%;--awb-spacing-right-medium:0px;--awb-spacing-left-medium:0px;--awb-width-small:100%;--awb-spacing-right-small:0px;--awb-spacing-left-small:0px;\" data-animationType=\"fadeInUp\" data-animationDuration=\"0.5\" data-animationOffset=\"top-mid-of-view\"><div class=\"fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column\"><div class=\"accordian fusion-accordian\" style=\"--awb-border-size:1px;--awb-icon-size:13px;--awb-content-font-size:16px;--awb-icon-alignment:right;--awb-hover-color:#f9f9f9;--awb-border-color:#5c5c5c;--awb-background-color:#ffffff;--awb-divider-color:#e0dede;--awb-divider-hover-color:#e0dede;--awb-icon-color:#ffffff;--awb-title-color:#169e8c;--awb-content-color:#666666;--awb-icon-box-color:#333333;--awb-toggle-hover-accent-color:#5c5c5c;--awb-title-font-family:&quot;Lora&quot;;--awb-title-font-weight:400;--awb-title-font-style:normal;--awb-content-font-family:&quot;Oxygen&quot;;--awb-content-font-style:normal;--awb-content-font-weight:400;\" id=\"toc-toggle\"><div class=\"panel-group fusion-toggle-icon-right fusion-toggle-icon-boxed\" id=\"accordion-3758-1\"><div class=\"fusion-panel panel-default toc panel-b2784140d08d961e5 fusion-toggle-no-divider fusion-toggle-boxed-mode\"><div class=\"panel-heading\"><h4 class=\"panel-title toggle\" id=\"toggle_b2784140d08d961e5\"><a class=\"active\" aria-expanded=\"true\" aria-controls=\"b2784140d08d961e5\" role=\"button\" data-toggle=\"collapse\" data-target=\"#b2784140d08d961e5\" href=\"#b2784140d08d961e5\"><span class=\"fusion-toggle-icon-wrapper\" aria-hidden=\"true\"><i class=\"fa-fusion-box active-icon awb-icon-minus\" aria-hidden=\"true\"><\/i><i class=\"fa-fusion-box inactive-icon awb-icon-plus\" aria-hidden=\"true\"><\/i><\/span><span class=\"fusion-toggle-heading\">Questions about Form 720 Spain, inheritances abroad<\/span><\/a><\/h4><\/div><div id=\"b2784140d08d961e5\" class=\"panel-collapse collapse in\" aria-labelledby=\"toggle_b2784140d08d961e5\"><div class=\"panel-body toggle-content fusion-clearfix\">\n<ul>\n<li><a href=\"#what-tax-implications-are-behind-an-inheritance\">What tax implications are behind an inheritance?<\/a><\/li>\n<li><a href=\"#what-is-declared-in-form-720-spain-in-relation-to-inheritances\">What is declared in Form 720 Spain in relation to inheritances?<\/a><\/li>\n<li><a href=\"#who-is-obliged-to-submit-form-720-spain\">Who is obliged to submit Form 720 Spain?<\/a><\/li>\n<li><a href=\"#what-is-the-deadline-for-submitting-form-720-spain\">What is the deadline for submitting Form 720 Spain?<\/a><\/li>\n<li><a href=\"#what-happens-if-you-inherit-assets-abroad-and-don\u2019t-submit-form-720-spain\">What happens if you inherit assets abroad and don\u2019t submit Form 720 Spain?<\/a><\/li>\n<li><a href=\"#why-is-it-so-important-to-be-guided-by-an-expert-tax-consultant\">Why is it so important to be guided by an expert tax consultant?<\/a><\/li>\n<\/ul>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-4 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap\" style=\"max-width:1248px;margin-left: calc(-4% \/ 2 );margin-right: calc(-4% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-3 fusion_builder_column_1_1 1_1 fusion-flex-column fusion-animated small-column\" style=\"--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:1.92%;--awb-margin-bottom-large:20px;--awb-spacing-left-large:1.92%;--awb-width-medium:100%;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-spacing-right-small:1.92%;--awb-spacing-left-small:1.92%;\" data-animationType=\"fadeInUp\" data-animationDuration=\"0.4\" data-animationOffset=\"top-into-view\"><div class=\"fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column\"><div class=\"fusion-text fusion-text-3 contenido-texto\" id=\"post\"><div id=\"what-tax-implications-are-behind-an-inheritance\" class=\"anchor\"><\/div>\n<h2>What tax implications are behind an inheritance?<\/h2>\n<p>If you receive an inheritance, you must deal with several taxes:<\/p>\n<ul>\n<li><b>Inheritance and donation tax.<\/b> This tax has been transferred to the Autonomous Communities, therefore the tax to be paid will depend on the last place of residence of the deceased.<\/li>\n<li><b>Municipal capital gains tax<\/b> <b>(Tax on the Increased Value of Land).<\/b> You will have to pay this if you inherit urban properties or lands.<\/li>\n<li><b>Personal Income Tax (IRPF).<\/b> In principle, if you inherit an apartment from your father you won\u2019t pay IRPF because it is considered that you have already paid taxes through Inheritance Tax, but if you have received income from renting this apartment you must declare this capital gains in the IRPF return.<\/li>\n<li><b> Form 720 Spain.<\/b> In addition to the above, if you receive assets or rights abroad you must submit Form 720, which is not a tax but an informative statement that is intended to prevent tax fraud.<\/li>\n<\/ul>\n<div id=\"what-is-declared-in-form-720-spain-in-relation-to-inheritances\" class=\"anchor\"><\/div>\n<h2>What is declared in Form 720 Spain in relation to inheritances?<\/h2>\n<p>There are several situations in which you must declare inherited assets using Form 720 Spain, provided these meet a series of requirements. The most frequent assets and rights you\u2019ll have to declare are:<\/p>\n<ul>\n<li>The money you inherit when it is located in credit institutions abroad. Such as an amount deposited in an account in France.<\/li>\n<li>Inherited shares in a company located abroad. For example, if you inherit shares in an Italian company.<\/li>\n<li>Apartments in another country that you inherit or the rights over these. Imagine your parents had a flat in Portugal and they leave it to you.<\/li>\n<\/ul>\n<p>These are just a few of the most common examples, but there are many other cases of assets and rights abroad that must be declared.<\/p>\n<div id=\"who-is-obliged-to-submit-form-720-spain\" class=\"anchor\"><\/div>\n<h2>Who is obliged to submit Form 720 Spain?<\/h2>\n<p>Those obliged to submit Form 720 Spain are:<\/p>\n<ul>\n<li>Individuals and legal entities that are Spanish residents.<\/li>\n<li>Permanent establishments in Spain that belong to non-resident individuals or legal entities.<\/li>\n<li>Entities regulated in Article 35.4 of the General Tax Law (recumbent inheritances and jointly owned estates). A recumbent inheritance is a legal entity used to name the inherited estate between the death of the testator and the acceptance of the inheritance by the beneficiaries.<\/li>\n<\/ul>\n<p>The limit as of which Form 720 Spain must be submitted is 50,000 euros for each of the categories (accounts, securities and real estate abroad).<\/p>\n<div id=\"what-is-the-deadline-for-submitting-form-720-spain\" class=\"anchor\"><\/div>\n<h2>What is the deadline for submitting Form 720 Spain?<\/h2>\n<p>The period for submitting Form 720 Spain runs from 1 January to 31 March each year. If you have already submitted the form last year and there has been no increase in any of the three categories exceeding 20,000 euros, you aren\u2019t required to submit it again the following year.<\/p>\n<div id=\"what-happens-if-you-inherit-assets-abroad-and-don\u2019t-submit-form-720-spain\" class=\"anchor\"><\/div>\n<h2>What happens if you inherit assets abroad and don\u2019t submit Form 720 Spain?<\/h2>\n<p>One of the most controversial aspects of Form 720 Spain is that, despite it being an informative statement, the penalties imposed for not declaring can be exceedingly high.<\/p>\n<p>If you have to submit Form 720 Spain on the three categories seen and you don\u2019t do it within the deadline, you could be fined 30,000 euros and if the obligation is for only one category the fine would be 10,000 euros.<\/p>\n<p>In addition to the above, bear in mind that it is one thing to submit the form voluntarily and another very different is if the Treasury Department demands that you submit it. In the second case, you\u2019ll probably have to pay additional charges.<\/p>\n<p>We must highlight that the EU has advised Spain Spain to amend the regulation for declaring assets and rights abroad (Form 720 Spain) since it violates one of the EU\u2019s fundamental rights, i.e. the free movement of capital and also involves a disproportionate penalty system.<\/p>\n<p>You may also be subject to penalties arising from IRPF for not having declared the capital gain if there is any.<\/p>\n<div id=\"why-is-it-so-important-to-be-guided-by-an-expert-tax-consultant\" class=\"anchor\"><\/div>\n<h2>Why is it so important to be guided by an expert tax consultant?<\/h2>\n<p>If you inherit assets, securities or rights abroad, you must consult with a tax advisor who will:<\/p>\n<ul>\n<li>Look into your specific case and the tax implications it may have.<\/li>\n<li>Advise you on the taxes to be paid.<\/li>\n<li>Prepare and submit the taxes (Inheritance and Donations, Capital Gains, Personal Income Tax) and Form 720 Spain.<\/li>\n<li>Meet the deadlines foreseen in the law.<\/li>\n<li>Informs you of all possible penalties to be paid for late submission of tax returns and Form 720 Spain.<\/li>\n<li>Manage the payment and appeal of any penalties you are to pay.<\/li>\n<\/ul>\n<p>As seen, inheriting has important tax consequences and it is essential you analyse each case to decide whether or not you want to accept the inheritance and to know the amounts you\u2019ll have to pay.<\/p>\n<\/div><\/div><\/div><\/div><\/div><div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-5 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling modals\" style=\"--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap\" style=\"max-width:calc( 1200px + 0px );margin-left: calc(-0px \/ 2 );margin-right: calc(-0px \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-4 fusion_builder_column_1_1 1_1 fusion-flex-column\" style=\"--awb-bg-blend:overlay;--awb-bg-size:cover;--awb-width-large:100%;--awb-margin-top-large:0px;--awb-spacing-right-large:0px;--awb-margin-bottom-large:0px;--awb-spacing-left-large:0px;--awb-width-medium:100%;--awb-spacing-right-medium:0px;--awb-spacing-left-medium:0px;--awb-width-small:100%;--awb-spacing-right-small:0px;--awb-spacing-left-small:0px;\"><div class=\"fusion-column-wrapper fusion-column-has-shadow fusion-flex-justify-content-flex-start fusion-content-layout-column\"><div class=\"fusion-modal modal fade modal-1 share share-modal\" tabindex=\"-1\" role=\"dialog\" aria-labelledby=\"modal-heading-1\" aria-hidden=\"true\" style=\"--awb-border-color:#ebebeb;--awb-background:#f6f6f6;\"><div class=\"modal-dialog modal-lg\" role=\"document\"><div class=\"modal-content fusion-modal-content\"><div class=\"modal-header\"><button class=\"close\" type=\"button\" data-dismiss=\"modal\" aria-hidden=\"true\" aria-label=\"Close\">&times;<\/button><h3 class=\"modal-title\" id=\"modal-heading-1\" data-dismiss=\"modal\" aria-hidden=\"true\">Share:<\/h3><\/div><div class=\"modal-body fusion-clearfix\"><\/div><\/div><\/div><\/div><\/div><\/div><\/div><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start fusion-flex-content-wrap\" style=\"max-width:calc( 1200px + 0px );margin-left: calc(-0px \/ 2 );margin-right: calc(-0px \/ 2 );\"><\/div><\/div>\n<div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-6 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"--awb-border-radius-top-left:0px;--awb-border-radius-top-right:0px;--awb-border-radius-bottom-right:0px;--awb-border-radius-bottom-left:0px;--awb-flex-wrap:wrap;\" ><div class=\"fusion-builder-row fusion-row 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class=\"fusion-text fusion-text-4\" style=\"--awb-text-color:#636363;\"><p class=\"intro\" style=\"text-align: center;\">If you need some help, contact our <strong>Form 720 Spain experts<\/strong> so they can guide you based on your specific circumstances.<\/p>\n<p style=\"text-align: center;\"><div class=\"fusion-button-wrapper fusion-aligncenter\"><a class=\"fusion-button button-flat fusion-button-default-size button-default fusion-button-default button-1 fusion-button-default-span fusion-button-default-type\" style=\"--button-border-radius-top-left:4px;--button-border-radius-top-right:4px;--button-border-radius-bottom-right:4px;--button-border-radius-bottom-left:4px;\" target=\"_self\"><span class=\"fusion-button-text awb-button__text awb-button__text--default\">SEND INQUIRY<\/span><\/a><\/div><\/p>\n<\/div><\/div><\/div><\/div><\/div><\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":2,"featured_media":2261,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[120,491,89],"class_list":["post-3758","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-form-720-spain","tag-foreigners","tag-form-720-spain","tag-inheritances"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Form 720 Spain, inheritances abroad | ETL ILIA<\/title>\n<meta name=\"description\" content=\"Form 720 Spain, inheritances abroad. 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