Do you have assets abroad and don’t know if you have to declare them? If you are familiar with the ‘Form 720’, but are not sure what it consists of or how to file it, you have come to the right place. Here we will explain everything you need to know about this form and guide you through the process of filing it.
What is Form 720?
Form 720 is an informative declaration that must be submitted by those tax residents in Spain who own assets or rights abroad with a value of more than 50,000 euros. This includes bank accounts, real estate, securities or insurance. It is an obligation imposed by the Tax Agency in order to control tax evasion.
Why is Form 720 important?
The 720 model is essential to avoid penalties, as not filing this declaration or filing it incorrectly can lead to significant fines. Although in recent years there have been changes in the penalties, not complying with this obligation continues to be a reason for penalties by the Inland Revenue.
Who must file Form 720?
Any person or company that is a tax resident in Spain and has assets abroad that exceed 50,000 euros is obliged to file form 720. This includes not only individuals, but also entities, such as companies, associations or even foundations. For example, if you have a bank account abroad with more than 50,000 euros or a property valued at more than that amount, you must report it using this form.
How to file form 720?
Now that you know what form 720 is, it is important to understand the process to file it correctly. Although it may seem complicated, with the right guidance, such as the one we offer at ATL Despacho, this procedure becomes easier.
Step 1: Prepare the information
Before you start filing Form 720, you need to gather all the necessary information about your assets abroad. This includes:
- Bank accounts: You should declare the balances of your accounts as at 31 December of the previous year, as well as the average balance for the last quarter.
- Real estate: You will need the cadastral data or identifiers of the property, as well as the purchase or appraisal value.
- Securities, insurance and rents: You must declare the value of these assets at the end of the corresponding year.
Step 2: Completing the form
Form 720 is filed electronically through the Tax Agency’s website. If you are not familiar with the system, it is advisable to enlist the help of a tax advisor. ATL Despacho offers this type of service, helping companies and individuals to comply with their tax obligations efficiently and without complications.
Step 3: Filing Form 720
Once you have all the information prepared and the form completed, the next step is to submit it. Remember that the deadline for submitting the Form 720 is 31 March of the year following the year to which the information corresponds. For example, if you are declaring assets for the year 2023, you have until 31 March 2024 to submit the form.
What happens if you do not file form 720 on time?
The Tax Agency can impose significant penalties if you do not file the 720 form on time or if the information provided is incorrect or incomplete. Although the fines have been revised following a ruling by the Court of Justice of the European Union, it is better to avoid problems. At ATL Despacho, we can help you comply with all your tax obligations on time, avoiding penalties and problems with the tax authorities.
Benefits of professional advice
Taxation can be complicated, especially when it comes to complying with specific regulations such as the 720 tax return. Having a tax advisor not only ensures you comply with the law, but also ensures peace of mind. At ATL Despacho, we offer tax, accounting and employment consultancy services to companies of all sizes in Las Palmas and other regions of the Canary Islands.
We ensure that our clients meet their tax obligations without worry, while they focus on growing their businesses. Whether you need help filing the 720 tax form or any other tax procedure, we are here to help you.
Form 720 is a compulsory declaration for those who own assets abroad worth more than 50,000 euros. Failure to file on time can lead to significant penalties. Therefore, it is vital to have the help of experts to guide you through the process and ensure that your declaration is correctly completed. At ATL Despacho, we specialise in offering tax, accounting and employment solutions that will help you comply with all your legal obligations without complications.
If you need more information or advice on how to file form 720, do not hesitate to contact us. We are here to support you every step of the way.
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