Those who are newly arrived and fiscally resident in Spain must present a modelo 720 which reports to the Spanish tax authority their assets exceeding 50,000 euros in any one of various categories which are held abroad. This could be Property owned or bank accounts held in the Uk for example
Taxpayers who presented the modelo 720 in previous years before, you must resubmit again in the following cases:
- When any assets and rights that the taxpayer holds exceeding € 50,000 per category were never declared previously either in error or omission.
- When there has been an increase in on items already declared of € 20,000 euros or more (on each category)
- Generally speaking, in the case of sale or loss of ownership or devaluation of the property ( stocks, shares ) held in previous years, and for each category of asset. In some cases it may be necessary to report account balances with negative values.
Example: 2012: For the same person: Current account 1 in the UK balance at 31/12/2012 49,000 euros, current account 2 in the UK 18,000.
Shares in ABC company valued at 25,0000 euros as at 31/12/2012
Total declared for current acounts as at 31/12/2012 67,000 euros Total declared for shares as at 31/12/2012 zero (under 50,000)
2017: Current account 1 in the UK balance at 31/12/2017 47,000, current account 2 in the UK 42,000 (shares sold and money put in current account).
A declaration must be made for 2017 and presented by 31/3/2018
Total declared for current acounts as at 31/12/2017 89,000 euros (more than 20,000 euros different) Total declared for shares as at 31/12/2017 zero
Failure to present or late presentation of modelo 720 when eligible to do so, filing incomplete or false data is considered a very serious tax offense.
In the case of failing to report an asset or set of assets is punishable by a minimum fine of € 10,000.
The DTE must always be declared by the person who actually obtained the income used to aquire the assets and also, as a rule, they will be the legal owner of the property concerned.
There is, however, one exception: if the person who obtained the income (the beneficial owner) was not listed as legal owner of the property and rights, then they are only allowed to submit the DTE if the legal owner is non-resident and he that earned the income (beneficial owner) becomes listed as the legal owner before 31/12/2013.
This CAN ONLY be presented on line by either the indivdual using a digital certificate or an authorised representative.