As the leading law firm in Marbella, it is our pleasure to inform you about Spain’s model form D6, relating to foreign investments.
In this article, we explain everything you need to know about the D6 model, the rules governing who has to present it, under what conditions it is mandatory, the associated key terms, etc. Also, if you are someone who has to declare Spanish investments abroad with the D6 model, we show you how to do it, step by step. At Welex, Marbella’s leading property solicitors and law firm, we are always here to help.
What is the D6 model, or Declaration of Foreign Investments?
The 6 model comes from the Ministry of Economy, more specifically the State Secretary of Commerce, and is a declaration for the registration of Spanish investments abroad, for companies listed on the Stock Exchange or Organisational Market, when deposited in an entity domiciled abroad or in the custody of the holder of the investment.
Who is required to submit it?
This model must be submitted in two cases: for anyone who has to declare operations (or flows) and for those who have to declare deposits in external entities.
A- The statement of operations (flows) is to be made for each investment, participation, or liquidation involving 10% of the stock capital of the non-resident company, if the investor is a member of the management body or if the amount of the investment exceeds the figure of €1,502,530.26. There is a term of one month to present the form from the date of completion of the operation.
B- The declaration of deposits does not take into account any specific amount and must be presented by all holders of securities located abroad. The declaration is presented in January, and the position is calculated at the end of the year, on December.
Is the D6 obligatory?
Yes, the D6 model is compulsory for stakeholders whose holdings include foreign investments primarily for those companies that are listed on the stock exchange, in the case that these securities are deposited in foreign countries.
This model does not replace model 720, which must be presented at the Tax Office, but complements it. Even if there has been no consequence to date due to the omission of its presentation or its late presentation, this does not mean that there are no sanctions in this regard.
Failure to comply with the obligation to submit this model, D6, can lead to a fine of up to 25% of the undeclared amount, with a minimum of €3000. Late declaration entails penalties ranging from €300 in the first 6 months to €600 after that deadline.
How do I complete the D6 mode?
To complete the model D6, you can download this program, called AFORIX. Once downloaded and installed, select the model D6 – Spanish Investment in Negotiable Securities.
To complete this form:
1-First, choose whether you wish to declare flows or deposits in the corresponding box.
2-If you are reporting a rectification, this must be indicated in the box with the number of the declaration to be replaced and the new one
3-Fill in the data of the investor: Surname and name or company name, NIF or NIE, and the address of the registered office of the owner of the investment.
4-The next step is to fill in the investment data: the ratio of deposited securities (or transactions) made. Here you have to specify several things:
– Type of operation: In the case of a statement of flows, this is marked with a 2, and in the case of sales with a 4.
– Date (only in the case of declaration of flows).
– Percentage of participation, whether equal to or more than 10%.
– ISIN code: Information that can be provided by the broker and that refers to the international number of identification of the securities.
– Value Description: Value name
– Issuer: Code of the nature of the issuer, whether resident or not.
– Value: Value code, whether a participation title, short or long term debt, etc.
– Country: Code of the country in which the operation was performed.
– Currency: Code of the currency in which the value is denominated.
– Number of titles or shares.
– Nominal in the currency of denomination: Amount of the deposit in the currency type indicated.
– Effective amount: Of the entire position, in the indicated currency.
5- Lastly, in Diligences, we fill in the data of the investor, or representative of the taxpayer, who should receive notifications.
What documentation do I need to present the D6 model?
In addition to the completed model D6, you need to submit extracts from the securities accounts in foreign countries, in addition to a copy of your DNI or NIE.
How can I submit the D6 model?
You have three ways to present this model:
A- You can present it physically, with your documentation in paper, by going to any office of the administration registry.
B- You can send it by ordinary mail to the following address: Ministry of Economy, Industry and Competitiveness. Paseo de la Castellana, 162 28046 MADRID. To the attention of the General Secretariat for International Trade in Services and Investments
C- You can submit it online or by email with an electronic signature.
Should you have any doubts or enquiries referring to this issue or similar issues, please do not hesitate to contact our expert advisors, here at Welex!