Tax Form 720 is an informative declaration required by the Tax Agency that aims to provide detailed information on the assets and rights located abroad of taxpayers resident in Spain.
The assets that have to be declared in this declaration are divided into three main groups:
- Bank accounts and deposits
- Securities, rights, insurances and incomes
III. Real estate and rights over real estate
The obligation to declare occurs for resident taxpayers when the joint limit of 50,000 euros is exceeded in any of the aforementioned groups of assets and rights.
For the following years, the obligation to file occurs in the event that the balance of any of the groups has increased by more than 20,000 euros. To check this variation, the balance of each group is compared with the balance reported in the last return filed.
Tax Form 720 is filed electronically and the deadline for filing is between 1 January and 31 March of each year, referring to the previous tax year.
Failure to comply with this obligation may result in significant financial penalties from the Tax Agency, so it is important to comply with this tax obligation.
In short, all taxpayers resident in Spain who meet the aforementioned criteria are obliged to file Tax Form 720 in order to comply with their tax obligations and avoid possible penalties from the Tax Agency.
Sara Gámez Córdoba.
