Few Spanish tax forms cause as much concern among foreign residents as form 720. It is not a tax: it is an information return about assets held outside Spain. But it has thresholds, deadlines and a first year that are easy to miss when you have just arrived.
Form 720 does not make you pay more tax. It tells the Tax Agency what you hold abroad.
The first year you are resident is the first year it can apply.
Who has to file form 720?
Spanish tax residents who hold assets abroad above certain limits. The return is organised in three categories, and each one is assessed separately:
- Accounts with banks and financial institutions abroad.
- Securities, rights, insurance and annuities held abroad.
- Real estate located abroad.
For accounts, the threshold is €50,000, taking all accounts together, measured on the balance at 31 December or on the average balance for the last quarter of the year. If either figure exceeds the limit, all accounts must be reported.
When it is filed
Between 1 January and 31 March of the year following the one it refers to. In later years, you only need to file again if the value reported in a category increases by more than €20,000, or if you cease to hold something you had already declared.
An example: savings left at home
A professional moves to Madrid and keeps her savings and a small investment account in her home country, together above €50,000. Her first full year of residence ends on 31 December. By 31 March of the next year, she should file form 720 for those accounts, even though they generate little income and she has not moved a single euro.
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What about penalties?
The former penalty regime for form 720 was found disproportionate by the Court of Justice of the European Union in 2022, and Spain amended it. Late or incorrect filing is now subject to the general penalty rules. It is still worth filing on time: it is simple, and it avoids an unnecessary procedure.
Crypto-assets abroad
Crypto-assets held with custodians outside Spain have their own information return, form 721, with a similar logic. If you hold them, they should be reviewed at the same time.
Where Cigarrán fits in
At Cigarrán we review what you hold abroad, confirm whether any category exceeds the thresholds and prepare the return, in English. If a year has already been missed, we assess how to regularise it.
Report once, then only when it changes
Form 720 looks daunting, but once filed it only needs attention when your position changes. The key is to file it the first year it applies.
If you hold accounts or assets outside Spain and are not sure whether form 720 applies to you, let’s talk it over.
