On October 30th, 2012, the Spanish Government approved a tax law to help fight against tax evasion: (Ley 7/2012, de 29 de octubre, de modificación de la normativa tributaria y presupuestaria y de adecuación de la normativa financiera para la intensificación de las actuaciones de la prevenión y lucha contra el fraude).
This Spanish law requires you to provide to the Spanish tax authorities information about offshore accounts, offshore investments, and real estate located abroad.
The submission of the Form 720 does not imply any additional taxation, since it is informative (however it opens the door to any regularization that should be made as a result of providing this information).
Filing is not required for individuals, legal entities, and permanent establishments that have already registered and sufficiently identified the information in their accounting, according to the Spanish Code of Commerce (offshore values, rights, insurances and revenues, deposited, managed or obtained abroad are not included in this exception ).
Once the first Form 720 is submitted, the individual will have the obligation of submitting this form during the following years if:
Non-fulfillment of this obligation carries the following penalties: