What is Form 720?
Form 720 is an informative declaration that tax residents in Spain must file if they hold assets or rights abroad exceeding €50,000. It is not a tax in itself — it is an obligation to inform the Spanish tax authority of what you hold outside Spain.
What needs to be declared? Bank accounts abroad, property outside Spain, shares, investment funds, life insurance policies and other assets.
When do you need to file?
The filing period runs from 1 January to 31 March each year. You only need to file it the first year you exceed the €50,000 threshold, and afterwards only if there are significant changes compared to the previous year.
What happens if you don't file?
The penalties for not filing Form 720 can be very high:
- Minimum fine of €10,000 per group of undeclared assets
- €5,000 fine for each incorrect or incomplete piece of information
- Undeclared assets may be considered unjustified capital gains
The good news is that if you file it correctly and on time, there is no additional cost beyond the management fee. At TAXNOVA we prepare it for you without any complications so you can sleep easy.