720 Form


Since the expiration day for declaring the 720 form is getting closer, we would like to remind to all of those living in Spain of the main innovations introduced by the Royal Decree 1558/2012, of November 15th, which, among other things, establishes the obligation to inform property and rights located abroad.


A tax obligation required on the basis of the HAP / 72/2013 order dated January 30th, with which the Form 720 was approved, for the declaration of the aforementioned assets.

The aforementioned document establishes the obligation to present an annual disclosure statement, between 1 January and 31 March of the year following the one to which the information refers, concerning property assets, rights located abroad, belonging to to natural persons residing in Spain, to Spanish companies, to the permanent branches of foreign companies and other entities.

This new rule is incorporated by the Spanish state on the basis of Council Directive 2011/16 / EU of 15 de February 2011, on administrative cooperation in the tax and tax field, for which Directive 77/799 / EEC is derogated. The information statement, model 720, can only be submitted electronically via the Internet, by accessing the website of the Tax Agency.


In order to make this declaration, the tax payer must have his own electronic certificate, or in the absence of it, the declaration can be presented by a person authorized to access the system representing third parties (Example: Accountant or Spanish tax advisor).

The information obligation has been divided into three groups or blocks:

  1. [Current accounts opened with deposits in banks located abroad].
  2. [Shares, rights, life insurance, income insurance, time deposits managed or contracted abroad].
  3. [Real estate and rights on immovable property located abroad].

In particular:

Block A. Current accounts in banks or financial institutions located abroad

This first block includes:

current accounts, savings accounts, time deposits, credit and any type of current account or money deposit facility located abroad.

To understand: the typical current account that we never closed in Italy and that we use when we return to spend the holidays or to collect the rent of a ‘hypothetical house of property of which we still pay the mortgage, or in which we still have domiciled the various annual fees of municipalities, or services such as electricity and gas, where we collect the INPS pension, the returns of a fund or treasury bills.

The information obligation is established for those who:

are currently, or have been at any time of the previous year, owners, represented, authorized, beneficiaries of the assets on which they have the power of disposal (use and usufruct) or of which they are the real owners.

The information to be provided includes both the balance at the end of the year and the average balance corresponding to the last quarter.

From this obligation the following account holders are exempt:

  1. Current accounts belonging to companies exempt from Company tax.
  2. Current accounts recorded and correctly identified in the company accounts.
  3. Current accounts opened in foreign branches of credit entities domiciled in Spain, which are then subject to declaration by the entities themselves.
  4. When the current account balance as of December 31 and the last quarter’s balance do not exceed € 50,000 together.
  5. When in the following years, any balance in the total referred to in the preceding paragraph supposes an increase of more than € 20,000 compared to the balances declared in the last declaration, managed and obtained abroad.

Block B. Values, rights, insurance, life annuities deposited.

In this second group we include:

  • Values ​​or rights representative of the investments in any type of legal entity.
  • Values ​​representative of the sale to third parties of its capital.
  • Values ​​made for the management or administration of any legal instrument, including fidecomisso and “trusts” or assets.
  • Shares or holdings in the share capital or assets of collective investment institutions.
  • Life insurance or disability insurance for those who appear to be stipulated.
  • Temporary annuities or annuities of which you are a beneficiary.

The information obligation is required to:

owners and those who have the consideration of royal holders also extends to those who have exhibited this condition at any time of the year (except for temporary life insurance or life annuities)

This obligation will not affect the following assets and rights:

  • When the obliged tax is a tax exempt entity.
  • When they are registered and identified in the company accounts.
  • When the values ​​referred to above do not exceed, as a whole, the amount of € 50,000
  • When in the following years the combined value for all the values ​​has not been increased by an amount equal to € 20,000 compared to what was declared in the last statement

Block C. Property and rights on real estate located abroad.

The third group refers to real estate and property rights located abroad (ie outside Spain in any country in the world).

The information obligation is established for those who:

are or have been, at any time of the year, holders or have the character of real holders.

This obligation will not affect the following properties and rights:

  • When the tax liability is a tax-exempt entity.
  • When they are registered and identified in the company accounts.
  • When the values ​​referred to above do not exceed a total of € 50,000
  • When in the following years the combined value for all purchase values ​​has not been increased by an amount of € 20,000 compared to what was declared in the last statement.


The threshold of € 50,000 under which the declaration is not to be presented is established for each group of goods or rights. For example:

  • If a person owns assets and rights for a total amount of € 90,000 of which € 30,000 are from the first group. € 40,000 of the second group and € 20,000 of the third group will not be required to present the declaration.
  • If a person is the holder of assets and rights for a total amount of € 90,000 of which € 20,000 are from the first group, € 60,000 from the second group and € 10,000 from the third group, he must present the declaration only of the assets and rights of the second group.

In subsequent years, he/she will be obliged to declare only if the assets and rights of each of the groups have increased over € 20,000.


If a person in the year N declares goods and rights of any of the groups for an amount of € 60,000 and in the year N + 1 the assets and rights of this group have a value of € 70,000, the tax payer will not have to present any declaration with respect to the second group.

Instead, he will certainly be obliged to present the declaration if the value of the assets and rights of this same group in the year N + 1 was € 90,000.

In none of the previous cases will there be an obligation to present the declaration if the tax payer has already registered and clearly identified goods and rights abroad in his accounts.

We highly recommend to those who have real estate in Italy or in other countries of the world or current accounts with balances of more than 50,000 euros or life insurance or life annuity of amounts higher than those indicated to contact a Spanish accountant or a tax consultant to clarify further doubts and studies his situation and then obtain the relevant advice of the case, to make the corresponding statement, if it were in the suppositions of the law.

 In this link you will find some useful information offered by the Spanish Tax Agency.



There are important penalties for those who have to make the declaration  and he/she does not realize it before the deadline or even for those who, while realizing it in time, omits data or provides erroneous data in it, either by their own will or accidentally.



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