If you hold assets abroad and reside in Spain, the Modelo 720 is one of the most important tax obligations you need to understand. Although it’s not filed every year, failing to submit it when required can lead to serious consequences. This guide breaks down who must file, when the deadline is, and the key considerations you should keep in mind.

What Is Modelo 720?

Modelo 720 is an informative declaration required by the Spanish Tax Agency (AEAT) to report assets and rights located outside Spain. It is not a tax itself, but a disclosure form designed to prevent tax evasion.

It covers three categories of foreign assets:

1. Bank accounts
2. Securities, shares, funds, and life insurance
3. Real estate located abroad

Who Has to File Modelo 720?

You must file Modelo 720 if:

1. You are a tax resident in Spain, and

2. You hold assets abroad exceeding €50,000 in any of the following groups:

• Bank accounts (combined balance)
• Investments and securities
• Real estate

If any single group exceeds €50,000, you must declare that group.

Do You Have to File It Every Year?

No. Once you file Modelo 720 for the first time, you only need to file again if:

• The value of a previously declared group increases by more than €20,000, or
• You sell, close, or cancel any previously declared asset.

If nothing changes and the increase does not exceed €20,000, you do not file again.

When Is the Deadline?

The deadline to file Modelo 720 is:

From 1 January to 31 March

of the year following the year in which the assets were held.

Example: If you held foreign assets in 2025, you must file between 1 January and 31 March 2026.

Important Things You Should Consider

1. Accuracy is essential

The AEAT expects precise information: account numbers, addresses, balances, acquisition values, and dates.

2. Keep documentation

Bank certificates, investment statements, and property deeds should be stored in case the tax authorities request proof.

3. Penalties have changed, but compliance is still crucial

Although the EU forced Spain to reduce disproportionate fines, failing to file when required can still lead to sanctions.

4. Non‑residents do NOT file Modelo 720

Only Spanish tax residents are obligated.

5. Cryptocurrency abroad may also need to be reported

If held on foreign exchanges, they may fall under the “financial assets” category.

Final Thoughts

Modelo 720 can feel overwhelming, especially if you have multiple assets abroad or if it’s your first time filing. Understanding the rules helps you avoid unnecessary risks and ensures full compliance with Spanish tax law.