Modelo 720 in Spain: Complete 2025 Guide to Declaring Foreign Assets

Introduction

If you are a Spanish tax resident with assets abroad exceeding €50,000, you are required to file Modelo 720, the declaration of foreign assets. This mandatory filing is essential for tax compliance and avoiding significant fines. Non-residents are generally not required to file unless they recently became tax residents in Spain.

Failure to declare foreign assets can lead to severe penalties, although a recent EU Court ruling has resulted in changes to the fine structure. Understanding who needs to file, what assets must be declared, and how penalties apply is crucial for expatriates, retirees, and long-term foreign residents in Spain.

🚀 At Taxadora, we are experts in Modelo 720 and offer a full filing service to ensure your compliance with Spanish tax regulations.

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What is Modelo 720?

Modelo 720 is an informative tax form required by the Spanish Tax Agency (Agencia Tributaria) to track assets held by Spanish tax residents outside of Spain. It was introduced to prevent tax evasion and increase transparency regarding offshore accounts and investments.

Who Needs to File Modelo 720?

✅ Spanish tax residents who own foreign assets over €50,000 in any of the three asset categories. 

✅ Expats who recently became tax residents in Spain and meet the asset threshold. 

📌 Non-residents do NOT need to file Modelo 720 unless they become tax residents.

What Foreign Assets Must Be Declared?

• Bank accounts held outside Spain.
• Investments and financial assets, including stocks, bonds, pensions, and life insurance policies, private pension plans in some cases.
• Real estate properties and rights to properties located abroad.

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Modelo 720 Filing Deadline (2025)

📌 Annual Deadline: March 31 each year, covering assets held in the previous tax year.

• For 2024 assets, the filing deadline is March 31, 2025.
• Late or incorrect filings can result in penalties.

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Penalties for Non-Compliance (Updated After EU Ruling)

The Court of Justice of the European Union (CJEU) ruled in January 2022 that Spain’s Modelo 720 penalties were excessive and violated EU law. As a result, Spain adjusted the penalty structure to comply with European standards.

Current Modelo 720 Penalties (2025)

🚨 Failure to File or Late Filing:

• Standard penalties now start from €300 (reduced from the previous excessive fines).
• Maximum fines depend on the extent of the undeclared assets.

🚨 Incorrect or Incomplete Information:

• Fines of €20 per incorrect entry (minimum €300 per declaration).

📌 Previously, penalties could reach 150% of undeclared assets, but this is no longer applicable.

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Key Changes to Modelo 720 After the EU Ruling

📌 Penalty Reductions: The excessive fines that previously applied have been abolished. 📌 Statute of Limitations Introduced: The Spanish Tax Agency can only audit undeclared assets within four years of the due date. 📌 No More Automatic Taxation: Previously undeclared assets are not automatically considered taxable income in Spain.

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How Taxadora Assists Expats & Non-Residents in Spain

At Taxadora, we are experts in Modelo 720 and provide a comprehensive filing service to help you meet your tax obligations.

✅ Complete Modelo 720 Filing: We ensure your foreign assets are declared correctly and on time. ✅ Non-Resident Income Tax (Modelo 210): Required for property owners who do not reside in Spain full-time. ✅ Capital Gains Tax: Assistance with tax calculations when selling Spanish property. ✅ Property Taxes (IBI): We help set up and manage municipal property tax payments. ✅ Rental Income Tax: If you rent out your Spanish property, we ensure proper tax filings and deductions.

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Conclusion

Modelo 720 remains an important filing requirement for Spanish tax residents with foreign assets over €50,000. While penalties have been reduced following the 2022 EU ruling, failing to declare required assets can still lead to fines and tax audits.

💡 Taxadora ensures your Modelo 720 is filed correctly, helping expats and non-residents stay compliant with Spanish tax laws.

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