ASSET DECLARATION FOR RESIDENTS IN SPAIN: modelo 720
Here we discuss the asset declaration of modelo 720.
Many Belgians in Spain forget this reporting obligation, even though there are heavy sanctions.
What is the asset declaration? As a tax resident in Spain, you are obliged to declare that you own assets outside Spain using the modelo 720 form.
And this from 50,000 euros per asset category - real estate located outside Spain - non-Spanish financial investments and pension funds
- non-Spanish bank balances
If you have a Belgian bank account of 25,000 euros and you own a home worth 190,000 euros that is located in Belgium, you only need to indicate that you own foreign real estate.
Please note: if you share a bank account with your partner for a value greater than 50,000 euros, you must both state this separately.
When am I tax resident in Spain?
According to Spanish law, you are a tax resident if you stay in Spain for more than 183 days per year.
Tax residency is separate from nationality.
The double tax treaty between Belgium and Spain may deviate from this rule.
For example, if your vital interests are still in Belgium.
Will you be taxed if you own more than 50,000 euros in non-Spanish assets? Not necessarily. The wealth tax varies per region.
In the Comunidad Valenciana you will only pay wealth tax if your assets exceed 600,000 euros.
Modelo 720 is therefore purely informative for the Spanish tax authorities.
When should you submit modelo 720? Always between January 1 and March 31.