TAX OBLIGATION FOR SPANISH AND RESIDENTS IN SPAIN
As a resident in Spain , you are legally obliged to report all your assets located outside of Spain.
If you have not submitted Form 720 in previous years you are obliged to do so if the value of your assets loated outside of Spain comes over 50.000€. If you already reported assets by Form 720 last year or before, than you have to submit a new declaration only in case of an variation in the value by more than 20.000€.
There are few days left to submit the annual Form or Modelo 720 listing all assets located outside Spain. You have to report all assets in its amounts over 50.000€ in a certain catagory.
There are three categories: bank accounts; real estate property; investements in movables rights, securities, participation units, shares.
In case of shared assets each owner has to report his percantage even if its amount does not exceed 50.000€. You are also obliged to report assets if you are the owner, beneficiary or authorised to dispose of the asset – also the ones held by a company or trust.
All assets are valued by the reporting date of 31st December 2015 for the declaration for 2016. In case of bank accounts you should report the average balance over the last three month.
Today we can recommend urgently to declare income and wealth in Spain as the penalties are considerably high and severe. The global exchange of information makes it very easy for the tax authorities to discover omisions.
In respect of Modelo 720 fines are from 100 to 1.500€ for late submission; 5000€ to 10.000€ for failing to submit Form 720; and in addition 150% of unpaid income tax is also levied.
Provide youself security and peaceful sleep and don` t miss tax advantages within a legal structure by taking professional advice.