1. ❓ What Is Modelo 720?
Modelo 720 is a mandatory declaration for Spanish tax residents who own foreign assets worth more than €50,000 in total.
It is an informative return — meaning you don’t pay tax directly when filing, but failure to file can result in major penalties.
2. 🧭 Who Must File Modelo 720?
You must file Modelo 720 if:
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You are a tax resident in Spain (183+ days per year)
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You own foreign assets valued over €50,000 in any of the following categories:
The 3 asset groups:
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Bank accounts held outside Spain
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Real estate (e.g. property in another country)
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Investments: stocks, bonds, pensions, crypto (in some cases)
Note: If you already filed in a previous year, you only need to file again if the value increases by over €20,000 or an asset is sold.
3. 🗓️ When Is the Deadline?
Modelo 720 is due by March 31 each year, covering foreign assets held as of December 31 of the previous year.
Missing the deadline can trigger late filing penalties and raise audit risk.
4. 💶 What Information Must You Declare?
You’ll need to include for each asset:
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Country of origin
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Asset type and value
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Dates of acquisition or account opening
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Identification numbers or contract references
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Bank details or property addresses (if applicable)
All amounts must be declared in euros using the exchange rate on December 31.
5. ⚖️ What Are the Penalties?
Although some penalties were softened by recent EU rulings, failing to file Modelo 720 can still lead to:
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Fines of €150–€1,500 per asset for late/incomplete declarations
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Tax audits or assumptions of unreported income
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Criminal charges in extreme fraud cases
💡 If you’re newly becoming tax resident, it’s essential to review your situation before March 31.
6. 📋 Common Misconceptions About Modelo 720
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❌ “It only applies to citizens.” → It applies to residents, regardless of nationality.
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❌ “I only need to report if I earn income abroad.” → No — even dormant accounts and inherited assets must be declared.
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❌ “Crypto is exempt.” → Not anymore. Cryptocurrency wallets and exchanges abroad are now covered by similar declarations.
7. 👨⚖️ How Borderless Lawyers Can Help in Barcelona
We assist foreigners and expats in Barcelona with Modelo 720 filings:
✔ Assessment of whether you need to file
✔ Accurate valuation and documentation
✔ Secure remote submission
✔ Crypto asset compliance
✔ Legal support for audits or late filings
✔ Multilingual service in English, Spanish, French, Arabic
Contact us today to stay fully compliant with foreign asset declarations in Spain — and avoid unnecessary penalties.