B Law & Tax
11 May 2023

Tax Advisor: Assets abroad do not exempt you from paying taxes in Spain

Owning assets abroad does not make you exempt from your tax obligations. It is necessary to know which of these possessions must be declared and how to do it. In the first quarter of the year it is necessary to submit Form 720 specifying the assets located abroad. It is an informative form so that the Tax Agency is aware of these possessions.

Assets that are included in the model 720

Any possession that exceeds 50,000 euros abroad must be specified in the model 720. If the money deposited in Paypal reaches that amount, it must also be included in the form. Foreign bank accounts, bonds, loans, shares, investment funds, companies and real estate must also appear. If the life or disability insurance is from an entity that is abroad, it is incorporated in the same way.

Once the 720 form has been filed, it will only be necessary to file it again when there has been a change in assets.For apart from presenting this model, the taxpayer will also have to pay to the Treasury obeying the variations of the IRPF and the Wealth Tax. Depending on the country in which these assets are located, it will be necessary to check if there is an agreement of that nation with Spain to avoid double taxation. As for Wealth Tax, those persons with a gross annual wealth of more than 2 million euros at the end of the year will have to contribute to it.

B Law & Tax International Tax & Legal Advisors.

 https://www.blaw.es/

“En B LAW&TAX somos especialistas en asesoramiento fiscal internacional tanto a empresas como para particulares. Si desea ampliar la presente información, estaremos encantados de poder atenderle en el 917817194 o en [email protected]