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).
In Form 720, you must report your foreign assets when the assets exceed the amount specified below.
This form is for informational purposes only. It does not imply any additional taxation. However, it opens the door to any regularization that should be made as a result of providing this information.
This Spanish law requires you to provide information to the Spanish tax authorities about offshore accounts, offshore investments, and real estate located abroad.
Who is obliged to provide this information?
What information must be provided?
If the information hasn't changed since last year, do I have to file another Form 720?
When is the filing deadline?
What happens if I don't file?
You are required to file if your assets in any of the 3 categories exceeds the stated threshold.
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: