If you’re living in Spain and have assets abroad, you’ve probably heard about Form 720 spain and wondered: “Do I need to file this?” The spanish form 720 can seem intimidating, but understanding who needs to file form 720 is actually straightforward once you know the rules.
This guide will help you determine if you’re required to declare your foreign assets and what you need to know about the 720 form spain requirements for 2025.
What Is Form 720 and Why Does It Exist?
Overview of the Spanish Form 720
Form 720 spain is an informational declaration that Spanish tax residents must file to report their foreign assets. It’s not a tax payment form – it’s simply a way for the Spanish Tax Agency (Hacienda) to know what assets you own outside of Spain.
The form covers three main categories:
- Foreign bank accounts and deposits
- Securities and investments held abroad
- Real estate properties outside Spain
Purpose of the Declaration
The Spanish government created this foreign assets declaration to:
- Prevent tax evasion and ensure transparency
- Combat money laundering
- Align with international tax cooperation agreements
- Help taxpayers comply with their Spanish tax obligations
Think of it as Spain’s way of keeping track of its residents’ global financial picture.
Who Is Required to File Form 720 in Spain?
General Rule: Spanish Tax Residents
The fundamental rule is simple: if you’re a Spanish tax resident, you may need to file Form 720. Understanding your tax residency status is crucial because it determines your filing obligations under Spanish law.
You’re considered a Spanish tax resident if you spend more than 183 days per year in Spain, which includes both consecutive and non-consecutive days. The Spanish Tax Agency also considers you a resident if Spain is where you have your main residence or primary economic interests, regardless of how many days you spend in the country. In some cases, you may also be considered a Spanish tax resident if you’re married to someone who is already a Spanish tax resident, particularly when your spouse’s main residence and economic activities are centered in Spain.
Minimum Thresholds: €50,000 and Beyond
The key to understanding whether you need to file lies in the €50,000 threshold rule. This amount applies separately to each of the three asset categories, meaning you need to calculate the total value within each category independently.
For bank accounts and deposits, you must file if the total balance across all your foreign accounts exceeds €50,000. This calculation includes checking accounts, savings accounts, time deposits, and any other banking products held outside Spain. For example, if you have €30,000 in a UK bank account and €25,000 in a German savings account, your total of €55,000 exceeds the threshold, making the declaration mandatory.
When it comes to securities and investments, the same €50,000 threshold applies to the total value of all your foreign investments combined. This category encompasses stocks, bonds, mutual funds, ETFs, and other financial instruments held outside Spanish borders. The valuation should reflect the market value as of December 31st of the relevant tax year.
Real estate abroad follows the same logic, with the €50,000 threshold applying to the total value of all foreign properties you own. This includes residential properties like vacation homes, commercial real estate, undeveloped land, and even certain types of timeshare arrangements, depending on their legal structure.
You may be interested in: Beckham Law in Spain: 2025 Guide de Tax Benefits for expats and professionals
What If You Only Have One Type of Asset?
Each category is independent. If you have €60,000 in foreign bank accounts but no investments or real estate abroad, you still need to file the spanish form 720 for the bank accounts category only.
What If You Just Moved to Spain?
This is a common question among expatriates. If you became a Spanish tax resident during 2024, you must evaluate your foreign assets as of December 31, 2024. Even if you only lived in Spain for a few months, the full-year thresholds apply.
Example: Sarah moved to Madrid in September 2024 and had €70,000 in her Canadian bank account on December 31, 2024. She must file Form 720 by March 31, 2025.
What Foreign Assets Must Be Declared?
Bank Accounts
The bank account category is often the most straightforward but requires careful attention to detail. You must declare all foreign bank accounts where you appear as the account holder or have signing authority, regardless of whether you actively use these accounts.
This includes traditional checking and savings accounts, but extends beyond basic banking products to encompass time deposits, certificates of deposit, and even accounts where you hold power of attorney or are designated as a beneficiary. Many expatriates are surprised to learn that dormant accounts or those with minimal activity still require declaration if they meet the threshold requirements.
A crucial point to remember is that the Spanish Tax Agency requires you to consider the highest balance reached during the year or the December 31st balance, whichever amount is greater. This means that even if your account balance dropped significantly by year-end, you may still need to declare based on the peak amount you held during the year.
Investments and Securities
The securities category covers a broad spectrum of financial instruments held outside Spain. This includes direct ownership of stocks and shares in foreign companies, whether they’re publicly traded or privately held. Government and corporate bonds issued by foreign entities fall into this category, as do more complex investment products like mutual funds and exchange-traded funds (ETFs) managed by foreign institutions.
Life insurance policies with an investment component present a particularly nuanced area. If your life insurance policy has a savings or investment element that accumulates value beyond pure life coverage, it typically requires declaration. Similarly, certain pension funds, particularly those that allow for early withdrawal or have investment characteristics, may need to be included in your Form 720 filing.
The valuation of these assets should reflect their market value as of December 31st, which means you’ll need to obtain statements or valuations from your financial institutions or investment managers.
Real Estate Abroad
Foreign real estate declaration encompasses any property ownership outside Spanish borders, regardless of how you use the property. Whether it’s a vacation home you visit occasionally, a rental property generating income, or even undeveloped land you’re holding as an investment, all qualify for potential declaration if they exceed the €50,000 threshold.
The property types requiring declaration include residential properties such as houses, apartments, and condominiums, as well as commercial real estate like office buildings, retail spaces, or industrial properties. Undeveloped land and plots also fall under this category, even if you’re not actively developing or using them.
Timeshare arrangements require careful consideration, as their declaration depends on the specific legal structure of your ownership. If you hold a deed or ownership interest that can be valued and transferred, it typically requires declaration. However, simple usage rights or vacation club memberships may not qualify.
Property valuation can be complex, particularly in markets where recent comparable sales are limited. The Spanish Tax Agency generally accepts official appraisals, recent purchase prices adjusted for improvements, or valuations provided by local tax authorities in the country where the property is located.
Cryptocurrencies – Are They Included?
This is a hot topic in 2025. Currently, cryptocurrencies are not explicitly included in Form 720 requirements. However, the Spanish Tax Agency has indicated they may be included in future updates.
If you hold crypto through foreign exchanges or wallets, consult with a tax advisor, as regulations are evolving rapidly.
When and How to File Form 720
Filing Deadline in 2025
The form 720 deadline for 2025 is March 31, 2025. This deadline applies to assets you held on December 31, 2024.
Mark your calendar: Unlike income tax returns, there are no extensions available for Form 720.
How to File Online via the Spanish Tax Agency
Filing must be done electronically through the Spanish Tax Agency website:
- Access the Tax Agency portal (sede.agenciatributaria.gob.es)
- Log in with your digital certificate or Cl@ve PIN
- Navigate to “Modelo 720”
- Complete the form with your asset information
- Submit before the deadline
Tip: Gather all your foreign account statements and property valuations before starting the process.
Do You Need to File Again Next Year?
When Recurring Declarations Are Required
You don’t need to file form 720 spain every year automatically. You must file again when:
- The value of any asset category increases by more than €20,000 compared to your last declaration
- You acquire new assets that push you over the €50,000 threshold in a category you hadn’t declared before
- Three years have passed since your last filing (even without significant changes)
Changes That Trigger a New Filing
Example scenarios:
- You declared €60,000 in foreign accounts in 2023, and now you have €85,000 (increase >€20,000)
- You had no foreign real estate before, but bought a €75,000 apartment in Portugal
- You filed in 2022, didn’t need to file in 2023-2024, but must file in 2025 (three-year rule)
What Happens If You Don’t File?
Current Penalty Regime
Understanding the penalty structure is crucial for anyone subject to Form 720 requirements. The current system, reformed following the European Court of Justice ruling, maintains meaningful consequences for non-compliance while ensuring the penalties are proportionate to the infraction.
For late filing, the Spanish Tax Agency imposes a minimum penalty of €1,500 per asset category that should have been declared. This means if you were required to declare bank accounts and real estate, but filed late, you could face a €3,000 penalty even before considering the value of your assets. The penalty can increase substantially based on the total value of undeclared assets and how late the filing occurs.
The consequences for complete non-filing remain more severe, though significantly reduced from the previous regime. While the old system could result in penalties reaching 150% of the asset value in extreme cases, the reformed system considers factors like the taxpayer’s cooperation, the length of the delay, and whether the non-filing was willful or resulted from reasonable confusion about the requirements.
Discover also: How to declare rental income in Spain as a non-resident: Complete Guide
Changes After the EU Court Ruling
In 2022, the European Court of Justice ruled that Spain’s original penalty system was disproportionate. Spain has since modified the regime to:
- Reduce maximum penalties
- Make sanctions more proportional to the severity of the breach
- Maintain the obligation to file while making non-compliance less devastating
Bottom line: Filing remains mandatory, but the fear factor has decreased significantly.
Frequently Asked Questions (FAQs)
Is the Form Still Mandatory in 2025?
Yes, absolutely. Despite the EU court ruling and penalty changes, form 720 spain instructions remain in full effect. Spanish tax residents must continue filing when they meet the thresholds.
I Declared Last Year — Do I Need to Again?
Not necessarily. Check if:
- Any asset category increased by more than €20,000
- You acquired new foreign assets
- Three years have passed since your last filing
If none apply, you don’t need to file again.
What If I Miss the Deadline?
File as soon as possible. While penalties apply for late filing, they’re less severe than for complete non-filing. The Spanish Tax Agency may show leniency for first-time minor delays, especially if you file voluntarily.
Do Joint Accounts Need to Be Declared?
If you’re a joint account holder, you typically declare your percentage of ownership. For 50/50 joint accounts, declare half the balance.
What About Accounts Below €50,000?
Individual accounts below €50,000 don’t need to be declared unless the total across all your foreign accounts exceeds this threshold.
Need Help Filing Form 720?
Filing the spanish form 720 correctly requires attention to detail and understanding of complex rules. Making mistakes can lead to penalties, while missing the form 720 deadline can be costly.
Our expert tax advisors in Mallorca specialize in helping expatriates and Spanish residents navigate their international tax obligations. We provide:
- Complete Form 720 preparation and filing
- Asset valuation assistance
- Ongoing compliance advice
- Representation before the Spanish Tax Agency
Don’t risk penalties or stress over complex tax requirements. Contact our team today for personalized guidance on your foreign assets declaration. We’ll ensure you meet all requirements while minimizing your compliance burden.
Our team of lawyers and tax advisors in Mallorca is ready to assist you with any legal, tax, or accounting matter. Feel free to contact us — there's no cost or obligation, and we’ll be happy to help.
Ready to get started? Reach out to Benavides Asociados — our experienced tax professionals understand both Spanish regulations and the unique challenges facing international residents.
