March 31st is the deadline in Spain for filing information on assets and rights held abroad, which is known as Form 720. This filing relates to the following categories of assets:
1) Accounts in financial institutions located abroad, including those in which only a power of attorney is held, authorized, or available.
2) Securities, rights, insurance and income deposited, managed, or obtained abroad.
3) Real estate and property rights in relation to property located abroad.
Obliged to file form 720
Both individuals and legal entities resident in Spanish territory, as well as permanent establishments in Spanish territory of non-resident persons or entities, are obliged to file this information.
They must report changes in their filing status on December 31st or, in the event that they have lost their obligatory status during the year, the information will refer to the date on which they ceased to have such status.
Does not apply in the following cases
- Less than the 50,000 threshold for each of the three existing categories (bank accounts, securities and real estate), measured separately.
- Legal persons and other entities resident in Spanish territory, as well as permanent establishments in Spain of non-residents, will not report those items (bank accounts, securities and real estate) recorded and identified in their accounts individually, under certain conditions.
- Current accounts opened in establishments abroad of credit institutions addressed in Spain, which must be declared by said institutions to the AEAT (Spanish Administration), provided that they could have been declared in accordance with the regulations of the country where the account is located
The filing of the return will only be required for those items which, by category, and individually considered, have undergone a variation of more than 20,000 euros with respect to the last return filed.
Submission of the declaration past the deadline, submission which is incomplete, inaccurate or presents false data or by means other than electronic, computer or telematic, is a very serious infringement. Infractions activate a burdensome penalty regime.