MODEL 720: Informative declaration of assets abroad.
In 2022, the Model 720 It was marked by the elimination, by the European Union, of the severe sanctioning regime contained in its regulation, since these sanctions were disproportionate for the taxpayer, in the case of not submitting it or submitting it with erroneous data or information.
However, Model 720 is still valid and the March 31 ends its presentation before the Tax Agency of those assets (movable or immovable) located abroad and that exceed certain quantitative limits (€50,000) with a value date of December 31 of the year to be declared.
The Tax Agency issued a frequently asked questions document about this model and from those we will now reflect those that are most interesting:
Ask: In the case of a bank account abroad whose balance amounts to €150,000 on December 31, 2012, and which is owned by a resident entity (70%=€105,000) that has it registered in its accounting and a resident natural person (30%=€45,000). Is there an obligation to declare on the part of the natural person?
Answer: The natural person must submit an informative declaration, reporting on an account with a balance on December 31 of €150,000, indicating that their participation in it is 30 %.
Ask: Is there an obligation to submit a declaration when ownership is shared over a bank account opened abroad whose balance on December 31st exceeds €50,000, but whose ownership corresponds to several people?
Answer: There is an obligation to report on the bank account when this limit is exceeded (and none of the other exceptions to the obligation to declare apply) regardless of the number of account holders. The total balances will be reported without prorating, indicating the percentage of participation.
Ask: If a person is the "holder" of a checking account abroad whose balance as of 12/31 is €40,000 and is also "authorized" in another checking account whose balance as of 12/31 is €30,000. Is there an obligation to declare?
Answer: Yes, as long as there is no cause for exoneration.
And what if the second account was from a company (resident in Spain) that has it registered and identified in its accounting?
Answer: No, in this case the balance of the checking account, whose owner has been exempt from the obligation to declare, would not be counted.
Ask: If a resident is the owner of a single checking account abroad (not having the status of owner of any other account), and on April 4, 2012 it had a maximum balance of €67,000. The balance as of December 31 is €45,650 and the average balance for the last quarter is €46,200.45. Should I declare the account on form 720?
If I cancel the account on April 8, 2013, when I had a balance of €56,246.75. Should I report the cancellation on model 720?
Answer: In relation to the first question, the answer is that the account should not be the subject of a declaration since, although throughout the year €50,000 has been exceeded, neither the average balance for the last quarter nor the balance as of December 31st exceeds that amount. amount.
In relation to the second question, the answer is that the cancellation of the account should not be reported either since I have not been required to submit the informative return for bank accounts previously.
Ask: If a natural person habitually residing abroad who is a personal income tax taxpayer has an account opened in an establishment abroad of an entity domiciled in Spain, is there an obligation to submit an informative return on this account if the rest of the circumstances provided for in the article occur? 42 bis of the General Regulation approved RD 1065/2007, of July 27, to be obligated?
Answer: Yes, there is an obligation to submit an informative return, unless there is sufficient accreditation from the entity that has reported on this account.
Unless you have been informed of the status of “tax resident” or “personal income tax taxpayer” in Spain, the entity domiciled in Spain will not have provided the information related to your account.
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