The Modelo 720 is an informative declaration made to the Spanish authorities advising them of any asset an individual holds outside of Spain, with a value of 50.000€ or more. This declaration has to be made before the 31st March and is in relation to the value of the assets as of the 31st December the previous calendar year. Any asset held within Spain does not need
to be declared as it will already be known to authorities.
Modelo 720 has 3 reporting categories, split into bank accounts, investments and immovable property and the limit of 50.000€ applies to each. If the asset in question is in a different currency, the exchange rate will determine whether or not there is a need to declare. For example, if an individual has 30,000 pounds in a UK bank account, this would not need to be declared as with the current exchange rate, this would be equivalent to approximately 33,000€ and therefore short of the 50.000€ requirement.
Many individuals have bank accounts or investments that are held in joint names with a partner. If this is the case, each person must declare the asset as if they held it individually, stating the full amount and their percentage of ownership.
Once an asset has been declared, there is no need to declare again in later years, unless the value of the asset has changed by more than 20,000€ or the asset has been sold or closed down.
As with many declarations worldwide, there are fines that an individual could face if they fail to provide the information requested. These fines could be imposed due to late submission of the declaration or for misleading or false information.