{"id":3769,"date":"2019-12-17T08:10:29","date_gmt":"2019-12-17T07:10:29","guid":{"rendered":"https:\/\/etl-ilia.es\/uncategorized\/blog\/modelo-720-valoracion-de-inmuebles\/"},"modified":"2021-05-19T17:47:33","modified_gmt":"2021-05-19T15:47:33","slug":"form-720-property-valuation","status":"publish","type":"post","link":"https:\/\/etl-ilia.es\/en\/form-720-spain\/form-720-property-valuation\/","title":{"rendered":"Form 720 Spain, valuation of Real Estate"},"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;\"><h2 class=\"fusion-title-heading title-heading-left fusion-responsive-typography-calculated\" style=\"margin:0;--fontSize:26;line-height:1.3;\">Do you own a property abroad?<\/h2><\/div><div class=\"fusion-text fusion-text-2 contenido-texto\" id=\"post\"><p class=\"intro\">If so, you should know that in certain cases you must submit <a href=\"https:\/\/etl-ilia.es\/en\/form-720-spain\/\" target=\"_blank\" rel=\"noopener noreferrer\">Form 720 Spain<\/a> to inform the Tax Agency and if you don\u2019t, you may be fined. But you will surely have many questions: How are properties valued? What happens if you\u2019re a co-owner of the asset or have bought and paid for it in foreign currency? This article provides all of your answers.<\/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-3769-1\"><div class=\"fusion-panel panel-default toc panel-bc5e818f0e377d66e fusion-toggle-no-divider fusion-toggle-boxed-mode\"><div class=\"panel-heading\"><h4 class=\"panel-title toggle\" id=\"toggle_bc5e818f0e377d66e\"><a class=\"active\" aria-expanded=\"true\" aria-controls=\"bc5e818f0e377d66e\" role=\"button\" data-toggle=\"collapse\" data-target=\"#bc5e818f0e377d66e\" href=\"#bc5e818f0e377d66e\"><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\">Table of contents<\/span><\/a><\/h4><\/div><div id=\"bc5e818f0e377d66e\" class=\"panel-collapse collapse in\" aria-labelledby=\"toggle_bc5e818f0e377d66e\"><div class=\"panel-body toggle-content fusion-clearfix\">\n<ul>\n<li><a href=\"#informative-statement-form-720-spain\">Informative statement: Form 720 Spain<\/a><\/li>\n<li><a href=\"#frequently-asked-questions-regarding-the-valuation-of-properties-in-form-720-spain\">Frequently asked questions regarding the valuation of properties in Form 720 Spain<\/a><\/li>\n<li><a href=\"#what-happens-if-you-don\u2019t-declare-property-abroad-and-rights-over-these\">What happens if you don\u2019t declare property abroad and rights over these?<\/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=\"informative-statement-form-720-spain\" class=\"anchor\"><\/div>\n<h2 data-fontsize=\"22\" data-lineheight=\"33\">Informative statement: Form 720 Spain<\/h2>\n<p>The obligation to report assets and rights abroad is regulated by Additional Provision 18 of the General Tax Law that establishes the obligation to inform the Treasury Department of:<\/p>\n<p>Accounts abroad.<\/p>\n<p>Titles, assets, securities located abroad.<\/p>\n<p><strong>Real estate assets and rights over these when located abroad.<\/strong> In this case, the information to be provided is:<\/p>\n<ul>\n<li>Identification of the property and type.<\/li>\n<li>Location (country, city\/town, street, number).<\/li>\n<li>Date on which its was acquired.<\/li>\n<li>Purchase value. In relation to this, we\u2019ll now look into the main questions taxpayers ask.<\/li>\n<\/ul>\n<div id=\"frequently-asked-questions-regarding-the-valuation-of-properties-in-form-720-spain\" class=\"anchor\"><\/div>\n<h2 data-fontsize=\"22\" data-lineheight=\"33\">Frequently asked questions regarding the valuation of properties in Form 720 Spain<\/h2>\n<p>If you own a property let\u2019s say in Paris, you should ask your tax adviser if you are required to submit Form 720 Spain. In relation to the above, some of the most frequently asked questions that arise are:<\/p>\n<ul>\n<li><b>Property owned by several people.<\/b> Going back to the previous example, imagine you and your siblings all own a house in Paris. If at 31 December the acquisition value exceeds 50,000 euros, you must submit Form 720 Spain. As the property belongs to several people, each one must submit the form reporting the total value of the property without apportioning, including each person\u2019s percentage of ownership.<\/li>\n<li><b>Property owned on joint marital basis.<\/b> It may occur that the apartment in Paris is owned by a member of a couple married under a joint marital property basis. In this case, the spouse who is not the owner will have to declare as if he\/she were the beneficial owner.<\/li>\n<li><b>Value of the property in the event of an inheritance or donation. <\/b>To find out if you are obliged to submit the form, you must take into account the value of the property at the time of acquisition.<\/li>\n<li><b>Acquisition price in foreign currency. <\/b>If an individual or legal entity has purchased a property abroad and has paid for it in a currency other than the euro, the purchase price will be determined taking into account the exchange rate at 31 December of the year in which it is declared.<\/li>\n<li><b>Property consolidation. <\/b>You may acquire the bare ownership of a property abroad and then the right of use at a later date, thus consolidating full ownership. In these cases, the value of the asset will be calculated taking into account the value of the initial real right and the value at the time of consolidating the ownership. The acquisition date will be that on which the ownership is consolidated.<\/li>\n<li><b>Property with several owners and different acquisition dates. <\/b>In this case, the amount to be declared will be that of the ownership percentage, calculated by grossing up the amount paid for the percentage of the property.<\/li>\n<li><b>Purchase costs.<\/b> You can include the purchase costs and taxes in the acquisition value of the property.<\/li>\n<li><b>Amounts paid on account.<\/b> You may find that before buying a property abroad, you will pay certain amounts (deposit or down payment) on account of the price. In this case you won\u2019t have to submit the Form 720 Spain informative statement.<\/li>\n<li><b>Frequency for submission of Form 720 Spain.<\/b> In the event of having already submitted Form 720 Spain, you\u2019ll only have to submit it again when there has been a 20,000 euro increase in one or more of the reporting obligations compared to the amount recorded on the last statement you submitted.<\/li>\n<\/ul>\n<div id=\"what-happens-if-you-don\u2019t-declare-property-abroad-and-rights-over-these\" class=\"anchor\"><\/div>\n<h2 data-fontsize=\"22\" data-lineheight=\"33\">What happens if you don\u2019t declare property abroad and rights over these?<\/h2>\n<p>According to section 2 of Additional Provision 18 of the General Tax Law mentioned above, tax offences include the non-submission of Form 720 on time, the submission using incomplete, inaccurate or false data or submission via means other than the electronic means provided in cases in which you are obliged to use these means.<\/p>\n<p>These tax offences are considered to be very serious and in the event of non-compliance with the obligation to report on assets, properties and rights over these when located abroad, the fine could be as high as 5,000 euros for each data or series of data related to the same property or the same right over a property, with a minimum of 10,000 euros.<\/p>\n<p>If you are obliged to submit the form, and you do it voluntarily but outside the deadline (without an official requirement from the Tax Agency), the fine will be 100 euros for each data or series of data related to the same property, with a minimum of 1,500 euros.<\/p>\n<p>In addition, not declaring property or rights over these can entail consequences in relation to other taxes such as IRPF. In this case, it could be considered as an unreported capital gain and could also lead to a fine.<\/p>\n<p>However, the Spanish courts are beginning to overturn some of the penalties related to Form 720 Spain. If you want more information, feel free to read our post \u2018<a href=\"https:\/\/etl-ilia.es\/en\/form-720-spain\/form-720-spain-unlawful\/\" target=\"_blank\" rel=\"noopener noreferrer\">Form 720 Spain, unlawful<\/a>\u2019.<\/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 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-5 fusion_builder_column_1_1 1_1 fusion-flex-column fusion-animated small-column\" style=\"--awb-padding-top:5px;--awb-padding-right:10px;--awb-padding-left:10px;--awb-overflow:hidden;--awb-bg-color:#f9f9f9;--awb-bg-color-hover:#f9f9f9;--awb-bg-size:cover;--awb-border-color:#dbdbdb;--awb-border-top:1px;--awb-border-right:1px;--awb-border-bottom:1px;--awb-border-left:1px;--awb-border-style:solid;--awb-border-radius:3px 3px 3px 3px;--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-order-medium:0;--awb-spacing-right-medium:1.92%;--awb-spacing-left-medium:1.92%;--awb-width-small:100%;--awb-order-small:0;--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-center fusion-content-layout-column\"><script data-b24-form=\"click\/30\/i5k01s\" data-skip-moving=\"true\">\n        (function(w,d,u){\n                var s=d.createElement('script');s.async=true;s.src=u+'?'+(Date.now()\/180000|0);\n                var h=d.getElementsByTagName('script')[0];h.parentNode.insertBefore(s,h);\n        })(window,document,'https:\/\/cdn.bitrix24.es\/b16501187\/crm\/form\/loader_30.js');\n<\/script><div class=\"fusion-text fusion-text-4\" style=\"--awb-text-color:#636363;\"><p class=\"intro\" style=\"text-align: center;\">As a result of the above, it is paramount you speak to a<strong> tax expert<\/strong> who can help you submit <strong>Form 720 Spain<\/strong> in time and correctly assess the property or the right over it that you are to declare. This will ensure you avoid mistakes that could lead to a financial burden for you.<\/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":2266,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[90,491],"class_list":["post-3769","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-form-720-spain","tag-estate","tag-form-720-spain"],"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, property valuation | ETL ILIA<\/title>\n<meta name=\"description\" content=\"Form 720 Spain, property valuation. 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