Modelo 720: Reporting Overseas Assets for New Residents in Spain (2025 Guide)

If you’ve recently moved to Spain or plan to become a Spanish tax resident, one of the most important obligations you need to be aware of is Modelo 720. This form requires you to declare foreign assets — including bank accounts, real estate, and investments — held outside of Spain.

In this 2025 guide, we’ll break down:

• What Modelo 720 is
• Who must file
• What types of foreign assets need to be declared
• Deadlines, fines, and recent legal changes
• How Taxadora helps expats and retirees stay compliant

Whether you’re a British retiree with a pension in the UK, a Dutch national with a property in Amsterdam, or a German remote worker with foreign investments, this is a tax obligation you can’t afford to ignore.

🧾 What Is Modelo 720?

Modelo 720 is a declaration form introduced by the Spanish government in 2013 to combat tax fraud and increase transparency regarding foreign-held assets.

It’s informative only — you’re not taxed directly by this form — but the assets you declare may affect other tax obligations, like income tax or wealth tax.

Modelo 720 applies to:

• Residents in Spain (not non-residents)
• With foreign assets over specific thresholds
• Who are required to declare annually, when certain conditions are met

🧑‍💼 Who Has to File Modelo 720?

You must file Modelo 720 if you are:

• A Spanish tax resident (i.e., living in Spain more than 183 days per year)
• And own or are a beneficiary of qualifying foreign assets that exceed €50,000 in total per category

This includes:

• Expats who have moved to Spain permanently
• Foreign retirees with overseas pensions or property
• Digital nomads and remote workers who stay in Spain long-term
• Spaniards returning from working abroad

⚠️ Non-residents do not have to file Modelo 720, but if you become tax-resident — even mid-year — this applies.

📊 What Needs to Be Declared?

Modelo 720 is broken down into three asset categories. You must declare each category if it exceeds €50,000 in value as of December 31st of the previous year.

1. Bank Accounts

Declare foreign bank or savings accounts if:

• You are the holder, co-holder, authorized user, or beneficiary
• The combined balance exceeds €50,000

Includes: UK bank accounts, offshore savings, joint accounts

2. Investments and Securities

Includes:

• Stocks, bonds, pension plans, investment funds
• Life insurance with cash value
• Any holdings in foreign entities

Declare if total value exceeds €50,000

3. Real Estate and Property Abroad

Includes:

• Properties or land owned abroad
• Timeshares
• Buildings or houses held in foreign countries

Declare if total purchase value exceeds €50,000

🔁 Do I Need to File Every Year?

Only in these cases:

• Initial declaration the first year you become tax-resident
• In subsequent years only if:
  • The value of any asset category increases by more than €20,000
  • You sell or close any asset

So, if no change occurs, you don’t need to refile annually.

📅 Filing Deadline for Modelo 720

• Deadline: March 31st of the year following the tax year
• 2025 Filing: For assets held on December 31, 2024, the deadline is March 31, 2025

Please note the filing is before the income tax season!

⚖️ Penalties and Legal Challenges

Originally, Modelo 720 came with harsh penalties:

• €5,000 per data error
• No statute of limitations
• 150% fines on undeclared assets

But after a 2022 European Court of Justice ruling, these penalties were deemed disproportionate and incompatible with EU law.

As of 2025:

• Penalties have been softened, but fines still apply for intentional fraud or negligence

Filing is still mandatory and failure to file may result in audits, income tax reassessments, and loss of credibility with Spanish authorities.

💡 Example: UK Retiree Moves to Spain

Linda, 67, moves from the UK to Costa Blanca in September 2024. She becomes a Spanish tax resident.

She has:

• £120,000 in a UK pension account
• A joint savings account with £70,000
• A holiday home in Devon worth €250,000

She must file Modelo 720 by March 31, 2025, declaring:

• The pension (investment)
• The joint account (bank)
• The UK property (real estate)

🧾 Modelo 720 vs. Other Spanish Tax Forms

📁 Documents Needed to File

To file Modelo 720 correctly, you’ll need:

• NIE number
• Bank statements for December 31 balances
• Real estate purchase deeds (with value in EUR)
• Portfolio summaries or pension statements
• Proof of ownership or beneficiary status

All values must be reported in euros, using the official exchange rate on December 31.

💼 How Taxadora Helps Expats and New Residents

Modelo 720 may look simple but it involves serious compliance issues. Taxadora helps:

✅ Identify which assets must be reported
✅ Convert foreign asset values to EUR
✅ Avoid duplicate or late filing penalties
✅ File Modelo 720 accurately and on time
✅ Provide ongoing guidance as your situation changes

👉 Start your Modelo 720 declaration with Taxadora

🙋 Frequently Asked Questions (FAQ)

Q: I moved to Spain in October — do I still need to file?
Yes. If you became tax-resident in 2024 (by staying more than 183 days), then you must file by March 31, 2025.

Q: I only have a joint account abroad — do I need to declare it?
Yes. If your name is on the account and the total value exceeds €50,000.

Q: Are pensions included?
Yes. Most foreign pensions, especially private ones, are considered investments.

Q: Is Modelo 720 a tax form?
Not directly. But the assets declared can impact other taxes like wealth tax or income tax.

Q: Will my foreign bank be notified?
Not by Spain, but many countries exchange financial data via CRS (Common Reporting Standard).

✅ Final Thoughts

Modelo 720 is an important tax obligation for anyone becoming a Spanish tax resident. While it doesn’t impose tax itself, it opens the door to further scrutiny, especially for retirees and expats with assets abroad.

Taxadora ensures you stay on the right side of Spanish law, file on time, and avoid issues with AEAT.

👉 Let Taxadora help you file Modelo 720 in 2025