If you are a tax resident in Spain and own assets abroad, it is important to understand what Modelo 720 is and in which cases the obligation to file it arises.
It is one of the most discussed declarations in the area of international assets, and at the same time one of the most misunderstood.
What is Modelo 720
Modelo 720 is an informational declaration of foreign assets that must be submitted by tax residents in Spain.
Important:
this is not a tax payment, but an obligation to inform the Agencia Tributaria about certain assets located outside Spain.
The purpose of the form is to disclose information about residents’ foreign assets.
Which assets are covered by Modelo 720
The declaration covers three categories of assets:
- Bank accounts abroad
current accounts
deposit accounts
savings accounts - Real estate located outside Spain
- Securities, investments and insurance products
shares
company participations
investment funds
brokerage accounts
insurance products with an investment component
Each category is evaluated separately.
The €50,000 threshold
The obligation to file arises if the value of assets in one of the categories exceeds €50,000.
It is important to understand:
- the threshold applies separately to each category
- assets within each category are aggregated
- if the threshold is exceeded in at least one category, the filing obligation arises for that category
For example:
If you have €55,000 in foreign bank accounts but no real estate or investments, the declaration is submitted only for the bank account category.
Who must file Modelo 720
The obligation arises for individuals and legal entities who:
- are tax residents in Spain
- own assets outside Spain
- exceed the established threshold of €50,000
This applies not only to owners, but also in certain cases to persons with control, signatory rights or beneficial ownership.
Filing deadlines
Modelo 720 is submitted annually in electronic form.
The filing period runs from January 1 to March 31 of the year following the reporting year.
For example:
Information for 2025 must be submitted by March 31, 2026.
Is it necessary to file every year
After the first filing, the declaration must be submitted again only if:
- the value of assets increased by more than €20,000 compared to the previous declaration
- new assets appeared
- previously declared assets were closed or disposed of
If there are no changes and the threshold increase does not occur, a new submission may not be required.
Liability and the importance of correct filing
For many years Modelo 720 was considered one of the strictest informational reporting obligations in Spain.
Despite legislative changes in recent years, the obligation to correctly disclose information remains extremely important.
Errors in filing, incomplete information or late submission may lead to financial consequences.
Why confusion occurs
Many new tax residents in Spain:
- are not aware of the existence of this form
- believe that if taxes were paid in another country, nothing needs to be reported
- assume that the bank or broker automatically handles the issue
However, Modelo 720 is a separate reporting obligation within the Spanish tax system.
Conclusion
Modelo 720 is an informational declaration of foreign assets for tax residents in Spain.
If you have bank accounts, real estate or investments outside Spain and their value exceeds €50,000, it is important to determine in advance whether a filing obligation arises.
RoboTaxMaker helps structure information about international assets and simplifies the preparation of declarations in accordance with Spanish legislation.