As a result of the tax law adaptation, you will be requested information regarding all assets & rights you hold situated abroad. Please note that you have the obligation to declare ONLY if you are fiscally resident in Spain for Tax purposes.

The information required is as follows:

  • Properties: value and purchase date.
  • Life insurance:  Value of the insurance on the 31st December 2012.
  • Shares: Date of acquisition and value.
  • Stocks: Value of the shares on the 31st December 2012.
  • Bank accounts:  Balance of the accounts during 2012.
  • Fiscal institutions abroad: Balance of the account during 2012.
  • Securities, rights, insurance and annuities deposited, managed or obtained abroad
  • Real estate located abroad: Information of ownership or rights.

All the information required will be submitted on a Spanish tax declaration with number 720 “Informative declaration of assets & rights situated abroad” by individuals and entities resident on Spanish territory.

You have an obligation to file a tax declaration at the Spanish Inland Revenue if the sum of one of the three groups (accounts, bonds, real estate) reaches a total of 50.000,00 Euros, if so, you will be required to declare all assets and rights held abroad.

In order words there will be no need to declare the mentioned Spanish tax return, form number 720, as long as none of the three groups reaches the total amount of 50.000,00 Euros.

It will be considered a tax infringement to present the declaration out of date, incomplete, inaccurate or to state any false information. The tax penalties imposed for any of the above or the failure to comply with the obligation will result in financial penalties.

The tax form must be filed between January and March in the year following the declaration period. As an exception for the tax period 2012 this will be between February and April 2013.

NB:

You are not considered to be a fiscal resident in Spain if you don’t spend more than 183 days per calendar year and if you haven’t previously filed a tax return in Spain.  You may hold a certificate of residence but are a non-resident for tax purposes.

For more information call +34 952 833 169 or email info@perezlegalgroup.com