Filing of the Model 720 Declaration of Foreign Assets for the 2025 tax year
We remind you that the campaign for Form 720, Declaration of Assets Abroad, for the 2025 financial year is now underway. The deadline for submission is 31 March 2026 for all taxpayers who are required to file this form with the Spanish Tax Agency (AEAT).
Form 720 for the Declaration of Assets Abroad
Form 720 for the Declaration of Assets Abroad requires taxpayers who are resident in Spain for tax purposes, both individuals and legal entities, to submit an informative declaration on certain assets held abroad. In general, the assets or groups of assets located outside Spain that must be reported are as follows:
– Real estate and real rights over real estate located abroad.
– Accounts in financial institutions located abroad for which the taxpayer is the holder, representative, authorised person, beneficiary or has powers of disposal.
– Securities or titles, rights, insurance and income located or obtained abroad over which one is the owner, as well as insurance and income over which one is considered the policyholder or beneficiary, contracted with companies established abroad.
The obligation to file Form 720, with certain exceptions for each of the three blocks or sets of assets mentioned above, applies when the valuation established by the existing regulations for each of the three blocks or sets of assets considered individually exceeds €50,000.
In order to determine the aforementioned valuation for the purposes of analysing whether or not there is an obligation to file, the total valuation of the assets must be taken into account, regardless of the degree of participation held in them.
In relation to taxpayers who have filed Form 720 in previous years, there will be an obligation to file a return for the 2025 financial year, apart from in the case of becoming obliged by any of the general cases mentioned above, when the set of assets considered individually has undergone an increase in value of more than €20,000 with respect to the valuation of the last return filed, or when any of the assets that led to the obligation to file a return in previous periods are no longer owned.
Given the importance of complying with this obligation in due form and time, given the existing penalty system and the increase in the exchange of information between the tax authorities of different countries, it is recommended that all taxpayers with assets abroad contact the Tax Department in order to determine whether or not they are required to complete and submit Form 720 for the declaration of assets abroad for the 2025 financial year.
If you have any questions on this matter, please contact Judit Pastor by email at jpastor@btsasociados.com or by telephone on 93.201.15.76. We will be happy to assist you.