If you’ve recently moved to Spain or plan to become a Spanish tax resident, one of the most important obligations to be aware of is Modelo 720. This form requires you to declare foreign assets such as bank accounts, real estate, and investments held outside Spain.
This guide explains what Modelo 720 is, who must file, what needs to be declared, and how to stay compliant.
Modelo 720 is an informational declaration introduced to increase transparency regarding assets held abroad.
It does not generate tax directly
However, the declared assets may affect other taxes such as income tax or wealth tax
Modelo 720 applies to:
Spanish tax residents (not non-residents)
Individuals holding foreign assets above certain thresholds
You must file if:
You are a Spanish tax resident (generally living in Spain more than 183 days per year)
You hold qualifying foreign assets exceeding €50,000 per category
This includes expats, retirees, remote workers, and returning Spanish residents.
Modelo 720 is divided into three categories. Each must be declared if it exceeds €50,000 as of 31 December.
| Category | What to Include |
|---|---|
| Bank Accounts | Foreign bank accounts, savings accounts, joint accounts |
| Investments | Shares, funds, pensions (depending on structure), life insurance |
| Real Estate | Property or land located outside Spain |
You must file:
The first year you become tax resident
In later years only if:
The value of a category increases by more than €20,000
You sell or close assets
If nothing changes, you do not need to file again.
The deadline is 31 March of the year following the tax year.
For example:
Assets held on 31 December must be declared by 31 March of the following year.
Modelo 720 previously carried very severe penalties. Following a 2022 ruling by the European Court of Justice:
The original penalty regime was declared disproportionate
Sanctions have been aligned with general tax rules
Filing is still mandatory, and failure to file may lead to:
Penalties
Tax reassessments
Increased scrutiny
| Form | Purpose | Applies to Non-Residents? |
|---|---|---|
| Modelo 720 | Declaration of foreign assets | No |
| Modelo 210 | Non-resident income tax | Yes |
| Modelo 714 | Wealth tax declaration | Yes (Spanish assets) |
| Modelo 100 | Income tax (residents) | No |
To file Modelo 720, you typically need:
NIE number
Bank statements (31 December balances)
Property documentation
Investment or pension statements
Proof of ownership
All values must be reported in euros using the official year-end exchange rate.
Taxadora supports new residents by:
Identifying reportable assets
Converting values into euros correctly
Ensuring compliance with current rules
Filing Modelo 720 accurately and on time
You can get started on your Modelo 720 declaration with Taxadora.
If you become tax resident, the obligation may apply depending on your situation.
Yes, if you are listed as an account holder or authorised user.
In many cases, yes, depending on the structure.
No, but it can affect other taxes.
Modelo 720 is an important obligation for new tax residents in Spain. While it does not directly generate tax, it plays a key role in overall tax compliance.
Filing correctly and on time helps avoid issues with the Spanish tax authorities.
If you have recently moved to Spain or hold assets abroad, it is important to review your situation carefully. Click here to read more and start the Modelo 720 filing process with us.
Taxadora can help ensure everything is handled correctly.
Expert in international taxation for private individuals. He combines deep advisory experience with a passion for building technology that simplifies the complexities of Spanish tax compliance. As the founder of Taxadora, he’s on a mission to modernize cross-border taxation with smart, accessible solutions.
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