If you hold assets or rights outside of Spain, you are likely familiar with the Form 720 (Modelo 720). As we enter the first quarter of the year, the window for this mandatory informative filing has officially opened.
At Font-Serrat Asesores, we believe that clarity is the best tool for tax compliance. To help you prepare, we have summarized everything you need to know before the March 31, 2026 deadline.
1. What exactly is Form 720?
Form 720 is an informative declaration regarding assets and rights located abroad. It is crucial to remember that it is not a tax in itself—you won’t have to pay a fee upon submission—but it is a mandatory disclosure to the Spanish Tax Agency (Hacienda) to ensure transparency regarding your international wealth.
2. Who is required to file in 2025?
Residents in Spain (both individuals and legal entities) must file this form if, as of December 31, 2024, they hold assets in any of these three categories exceeding €50,000:
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Category 1: Accounts held in foreign financial institutions (banks).
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Category 2: Stocks, bonds, insurance policies, or income managed or deposited abroad.
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Category 3: Real estate property or rights over such property located outside of Spain.
«What if I filed last year?» You only need to file again if the value of any previously declared category has increased by more than €20,000, or if you have sold/cancelled an asset that was previously reported.
3. The Deadline: Don’t Wait Until March 31st
The deadline for the 2024 tax year is March 31, 2026.
Gathering the necessary documentation—such as average balances, acquisition values, and bank certificates from foreign entities—can take time. We recommend starting the process early to avoid last-minute stress or technical issues with the Tax Agency’s digital portal.
4. Important Reminder: Cryptocurrencies
Please note that since last year, virtual currencies held abroad are no longer reported on Form 720. Instead, they are reported on the specific Form 721. If you hold crypto assets, make sure you are filing the correct documentation.
5. Why Professional Guidance Matters
While the European Court of Justice previously ruled against Spain’s disproportionate penalties for Form 720, the obligation to declare still exists. Failure to report, or reporting incorrectly, can still lead to significant fixed-rate fines.
Precision is key to avoiding unnecessary scrutiny from the tax authorities.
We Are Here to Help
Navigating international tax laws can be complex, but you don’t have to do it alone. At Font Serrat Asesores, we specialize in international taxation and asset management. We will analyze your specific situation, verify if you meet the reporting thresholds, and handle the submission on your behalf.
Ensure your peace of mind this tax season. Visit our website at www.fontserrat-asesores.com or contact us today to schedule a consultation.