Many taxpayers forget to declare their assets abroad, risking penalties that can reach €20,000. Learn about Modelo 720 and avoid surprises.
The Ministry of Finance requires those with bank accounts, securities, insurance, or real estate abroad to file Form 720 before March 31. Why? Because the Tax Agency closely monitors the financial transactions of tax residents in Spain, both within and outside Spain, to prevent fraud and ensure tax collection.
These are the reasons why you should declare your assets abroad.
Modelo 720 is an informative declaration that includes the value of assets held abroad. It is intended for all taxpayers with assets exceeding €50,000 in any of the following categories:
- Bank accounts in financial institutions located outside of Spain.
- Securities, rights, insurance, and income managed or generated outside the country.
- Real estate and rights thereto located abroad.
Even if you have already filed your return in previous years, you will need to file a new return if the value of your assets increases by more than €20,000 compared to the previous year. Otherwise, the Treasury may impose penalties.
Basic requirements for filing Modelo 720 without problems with the Treasury
The filing period is open from the beginning of the year and ends on March 31, 2025. The process is completed online on the website of the State Tax Administration Agency (AEAT). To complete it, you will need:
- A digital certificate or access code for the AEAT website.
- Documentation with updated information on bank accounts, investments, insurance, or properties.
- Summary of your assessment, to verify whether the amount exceeds (or does not exceed) €50,000 in each block.
Be careful with the deadlines: if you don’t file on time or if you omit information, the Treasury fines can be very high. Fines can reach up to €20,000 if you violate the law.
The regulations establish different penalties depending on the type of violation. The following table details the main amounts:
| Type of violation | Possible penalty |
| Failure to file Form 720 or late filing | From €100 to €20,000 |
| Failure to report or incorrect reporting (e.g., tax address) | Fines starting at €100 |
| Declarations with errors or omissions, without financial los. | Between €150 and 2% of the value of the assets. |
| Inaccurate responses to individual requests from the Tax Agency | Also between €150 and 2% of the undeclared value |
As you can see, the Tax Agency is not one-to-mince words when it comes to controlling fraud. Therefore, it’s a good idea to prepare your documentation in advance, review your information, and, if in doubt, consult a specialized advisor or visit the Tax Agency’s website.
If you have any questions, please do not hesitate to contact us directly: US Tax Consultants
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