How to declare your assets abroad in Spain (Modelo 720)

What it is

Modelo 720 (declaración informativa sobre bienes y derechos situados en el extranjero) is a form on which Spanish tax residents report what they own outside Spain. It's an information return: you don't pay tax with it. The tax itself is in your yearly Renta.

It catches many new residents out, because savings, investments or a home back in your home country count.

Do you have to file?

You must file if, on 31 December, you were tax resident in Spain (see the Renta guide) and any one of these three groups was worth more than €50,000:

1. Bank accounts abroad, as owner or as an authorised person (for example on a parent's account).
2. Investments abroad: shares, funds, bonds, life insurance and annuities held with foreign companies.
3. Property abroad, such as a house or flat.

Each group counts separately: €40,000 in accounts and €40,000 in a fund means no filing. Negative balances reduce the total.

After your first Modelo 720, you only file again when:

• a group has grown by more than €20,000 since you last declared it, or
• you sell, close or stop owning something you declared.

You don't file it if you're on the special regime for people moving to Spain (Beckham law). Your family members who aren't on the regime still might.

Cryptocurrencies held with providers abroad go on a separate form, Modelo 721, with the same €50,000 limit and the same dates.

Before you start

You'll need:

• A digital certificate or Cl@ve: the form is filed online only.
• For each asset: where it's held (bank or company, country, account number or ISIN), the date you got it, and its value. For accounts, the balance on 31 December and the average balance of the last three months; for investments, the value on 31 December; for property, its purchase price and address.

Steps

1. Add up each group on 31 December, using your bank and investment statements.
2. If any group is over €50,000, open Modelo 720 on the Agencia Tributaria website between 1 January and 31 March.
3. Enter each asset (one entry per account, investment or property) and file it.
4. Keep the receipt. You'll use it to compare next year's values with the €20,000 rule.

Cost

Filing is free. A tax adviser charges for their help.

Common pitfalls

• Thinking it's only for the rich. Savings or a home back in your home country can pass €50,000 in one group quickly.
• Mixing up the deadlines. Modelo 720 is due by 31 March, months before the Renta.
• Forgetting accounts where you're only authorised, such as a family member's account you can use.
• Not filing because the old fines were struck down. In 2022 an EU court ruling led Spain to drop the extreme penalties, but the obligation stayed and ordinary fines still apply.

When to ask a helper

Ask someone who filed Modelo 720 with assets in your home country recently: they'll know which statements their bank gave and how they valued a home abroad.