FORM 720 SPAIN<\/a><\/p>\n<\/div><\/div><\/div><\/div><\/div>\n If you are married with shared matrimonial property and have assets or rights abroad (for example, a bank account in France or an apartment in Portugal), it is important that you know of the obligation to submit the Declaration of Assets and Rights Abroad, or Form 720 Spain<\/strong>.<\/p>\n<\/div><\/div><\/div><\/div><\/div> To better understand the Declaration of Assets and Rights Abroad in cases of shared matrimonial property, it is necessary to know the different matrimonial property laws that exist in Spain (in the common law):<\/p>\n There are several cases in which married spouses with shared matrimonial property must file Form 720 Spain. Here are some examples:<\/p>\n If you have an obligation to submit Form 720 Spain for a common property that you have with your spouse and you do not do so, three types of sanctions could be imposed on you:<\/p>\n Since Form 720 Spain was approved in 2013, its legality has been challenged due to the high penalties that non-submission entails, especially considering that it is an informative statement.<\/p>\n The European Commission considers that the sanctions that are imposed for the non-submission of the declaration are contrary to some principles of the Treaty of the European Union such as the free movement of people and capital. For this reason, the Commission filed an appeal with the Superior Court of Justice of the European Union, which will probably issue a ruling later this year or early 2021.<\/p>\n However, numerous Spanish courts have resolved cases on Form 720 and annulled various sanctions imposed by the Tax Agency due to non-submission. For example, the Central Economic-Administrative Court, in a resolution of February 14, 2019, annulled a sanction that was imposed on a taxpayer for filing Form 720 after the deadline in 2012.<\/p>\n<\/div><\/div><\/div><\/div><\/div>Are you married and the owner of assets abroad?<\/h2><\/div>
<\/i><\/i><\/span>Questions about Form 720 Spain and shared matrimonial property<\/span><\/a><\/h4><\/div>
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What matrimonial property laws exist in Spain?<\/h2>\n
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Cases involving shared matrimonial property in which Form 720 Spain must be submitted<\/h2>\n
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\nThe Tax Agency determines that even when the formal ownership of a shared asset or right is assigned to one of the spouses, both spouses must present the Declaration of Assets and Rights Abroad. The spouse who is not the formal owner must declare themselves to be a beneficial owner.<\/li>\n
\nAccording to a binding decision by the General Directorate of Taxes of November 18, 2018, both spouses are obliged to file the informative return. In this case, too, the spouse who is not the formal owner must declare themselves to be a beneficial owner.<\/li>\n
\nAccording to a binding decision by the General Directorate of Taxes of May 21, 3013, they must submit the informative return when the bank accounts have a balance greater than 50,000 euros. Additionally, the total balances must be reported in this declaration, and the percentage of participation must be indicated.<\/li>\n
\nIn this case, we consider that, although separately the spouses do not exceed the threshold above which there is an obligation to declare (50,000 euros), the two spouses must submit the declaration because their matrimonial property is shared.<\/li>\n
\nThe answer is that if the legally established limits are exceeded, the declaration of assets and rights abroad must be submitted.<\/li>\n<\/ul>\nWhat happens if Form 720 Spain is not submitted, is filed incorrectly or is late?<\/h2>\n
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Is Form 720 Spain illegal?<\/h2>\n