At Welex we explain and clarify you all the doubts you might have on the main issues of the statement of assets and rights abroad. We explain you the key points in our guide below:
What is this statement of assets and rights abroad and when did it become valid?
This statement is an adjustment of the Spanish tax law that forms part of the legislation that pursues fraudulent activities. In this way, it is obliged to inform about the assets and rights you possess abroad. This law became valid from the 1st of January 2013.
In short, it means you need to inform about the assets and rights you have abroad.
What must be declared in Spain?
This statement includes the obligation to inform on these three categories:
- The bank accounts you have at a bank abroad.
- Income, rights, securities and insurances managed and deposited abroad.
- Assets and real estate abroad, including any real rights thereon.
Which taxpayer does this informative obligation corresponds to?
To all natural persons resident in Spain, as well as companies and commercial establishments abroad that have: a holder, representative, beneficiary, authorized person or final beneficiary that must provide this information, provided that the sum of one of these three aforementioned categories that need to be declared (bank accounts; securities, rights; assets and real estate) exceed the sum of 50.000 €.
Should the value of each category not exceed this sum (50.000€), you are exempt from this obligation.
From the tax year 2012, this statement is only obligatory if the value of the balance of each category has increased by more than 20.000 euro regarding the statement of the year before.
How and when do you need to make this statement?
The model 720 duly filled in and presented online, must be filed between the 1st of January and the 31st of March of the next year.
It is important to correctly fill in form 720 given the fact that not filing the form, not filing it within the said period of time, or filing an incomplete form or with some error or omission regarding some asset or property is considered a severe infraction, etc. The economic penalties by the Spanish Tax Office may be very high.
Therefore, at Welex we recommend you to hire a professional team of advisors to handle the necessary documentation for this form and any other similar formality. Contact the Spanish accountants of our firm in Marbella today!
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