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Modelo 720: What is the modelo 720?
The modelo 720 Modelo 720 is a tax declaration in Spain that is required of people who are tax residents in Spain and have assets abroad. Its purpose is to increase tax transparency and prevent tax evasion. The obligation to file applies to natural and legal persons who are liable to pay tax in Spain and exceed certain thresholds for foreign assets.
When are you obliged to declare the modelo 720?
The declaration of the modelo 720 Modelo 720 is mandatory if the total value of the foreign assets exceeds one of the following thresholds:
You are also obliged to submit a new declaration if the value in one of the above 3 categories has increased or decreased by €20,000 compared to the last declaration.
When are you not obliged to make the declaration?
If none of these thresholds are exceeded, no levy of the modelo 720 Modelo 720 necessary. This also applies if the foreign assets are below the stated amounts or if there are no relevant changes compared to the previous year.
Deadline
The submission deadline for the modelo 720 Modelo 720 ends every year on March 31stThe declaration must include all relevant foreign assets from the previous year.
If you are subject to unlimited tax liability in Spain in 2024 and hold foreign assets above the defined thresholds, you will have to declare the modelo 720 Modelo 720 by 31 March 2025.
