On the 1st of January, 2013 the new "Declaration of assets abroad" entered into force, this means that all fiscal (tax) from residents in Spain must be submitted and this particularly affects all foreigners living in Spain. With this new tax form, it has been established the OBLIGATION to declare the assets and rights, which are located outside Spanish territory that people own or have right to use.

This is a complicated form "data declaration", that doesn’t impose any tax payment, but it has very high penalties in the case of not filling the form, wrong or late presentation. In other words, for example, the minimum penalty would be 10,000 Euros for missing a bank account or a property located abroad. Therefore it is very important to be correctly informed and to fill it out with the help of a professional.

In our office Your Tax World, specializing in tax advice, we offer you security for correct presentation of the form 720 and a guarantee to avoid the heavy penalties that are imposed with this new standard; we will take responsibility for our work in writing. Here we summarize, for your information, the news of the new standard.

For information from 2012, the deadline for submission of the form is from the 1st of February to the 30th of April of 2013, however in the following years it will be from the 1st of January to the 31st of March. The presentation of the form 720 can only be done electronically (online).

PENALTIES: In each of the 3 blocks of properties to be declared (if it is required) and for each set of data or data not presented or containing incorrect information a penalty of 5,000 Euros is established, with a minimum of 10,000 Euros per each block. For example, a person with bank accounts (with balances exceeding 50,000 Euros) and 3 properties decides not to present the form; What would the penalty be?
- For the bank account = € 5000, but with a minimum of 10,000 €
- For the properties 3 × 5000 = 15,000 €
- TOTAL PENALTY = 25,000 €

For this reason, we want to emphasize once again the importance of visiting a professional in order to present the form and to take responsibility to submit the correct information to the Tax Office.

The obligation to report all accounts in financial institutions located abroad exists only if the ending balances or average balances are over 50,000 Euros, in all accounts together and, in subsequent years, you just have to re-declare if any joint balances have experienced an increase of over 20,000 Euros compared to the previous statement. Similar limits are applied, regarding the obligation to report on values, rights, insurance and annuities deposits, managed or obtained abroad and, on the other hand, regarding the immovable property and rights to the property situated abroad.

The taxpayers (Spanish fiscal residents) should provide the following information to the Tax Office: in 3 "blocks" of elements

1) bank accounts located in foreign entities they own, or that they are beneficiary or authorized or bearing the power of disposal of such accounts.
2) shares, assets, insurances or rights representing the capital, equity ... entity, or transfer to third parties of own capital, deposited abroad, as well as life or disability insurances and annuities in their benefit

3) Real estate and rights of ownership located abroad

In order to have proper preparation of the form we need you to provide the following information of each block to declare:

0-    general information:

  1. a)Full name
  2. b)NIE / CIF / DNI
  3. c)Address in Spain
  4. d)Telephone number and e-mail

Block 1:
a) Identification of the bank or the credit institution, and its address
b) Full identification of the current accounts, savings, temporal deposits, credit accounts
c) opening and cancellation dates, or where applicable, the date of the grant and withdrawal of authorization
d) Balance at December 31st and the last quarter average balance or the date when they cease to be owners, agents, etc.

Block 2:
a) Identification of legal entities and third parties, number and kind of shares, interests, values ​​..., value and balances on 31st of December

b) Balance on December 31st and the last quarter average balance
c) Identification of insurance entities: company name and the address.

Block 3:
a) Identification of the property, specifying its type (OM)
b) Property location, country, address.
c) Date and acquisition value
d) In the case that you stop holding/owning a property during the year: date and transmission value

In all cases is necessary to indicate the percentage of ownership of the goods/accounts/values.. In cases where there are various owners, all of them should present the form, indicating his/her percentage of the ownership.