The period for presenting the Model 720 of declaration of assets and rights that they possess outside of Spain ends next march 31, 2022
The ECJ has declared contrary to the Community Law sanctions desorbitades imposed by Spain to the incomplidors of this obligation
On 11 march and came into effect a new law that meets the system of sanctions in the law european
Taxpayers whose property or rights outside Spain that have a value higher than eur 50,000 are required to present in front of the Agency Tributaria española a statement informative, called the Model 720. The deadline to comply with this obligation ends next 31 march 2022.
New sanctions
Until now, the submission deadline of the Model 720 entailed the imposition of sanctions desorbitades that could surpass the value of the assets that is owned abroad. On the 27th of January of 2022, the Court of Justice of the European Union handed down a resolution for the which he declared contrary to the Community Law the penalties of reference, forcing Spain to modify the system of sanctions applicable.
This, however, does not mean it is no longer compulsory to declare the assets and rights located abroad. The obligation to submit in time the Model 720 still exist. In fact, the last on march 11, 2022 entered into force a new law by which adapts the system of sanctions in law european and is equated with the general.
Therefore, taxpayers required to make the information statement of assets and rights abroad, which does not carry out the presentation, or do so out of time, that is to say, after march 31, 2022, may be sanctioned on the basis of the new regime that has just come into force.
The Judgment of the ECJ, in addition, he also considered contrary to the european regulations on the fact that the contributors who had not declared income abroad could not rely in the prescription tributaria. The new law of adaptation to the legality european, delete this imprescribilitat, both in terms of the income TAX as the Tax of Society.
Required to present the Model 720
Have the obligation to present this declaration to the people who at 31 December of 2021 had a bank account, securities (stocks or mutual fund) or real estate abroad valued at more than € 50,000.
If a taxpayer already presented the Model 720 the past year or in the years previous, you only need to present it this year if the value set of any of its groups of goods (accounts, securities or property) would have increased more than 20,000 euros regarding the last statement of information filed.
The fact that the obligation will affect groups of goods means that, for example, if in the statement of the previous year, it was reported on properties and accounts, but only has increased more than 20,000 euros to the value of the accounts, you'll need to submit a declaration in relation to the accounts. It will not be necessary to return to report on the properties.
It should be borne in mind, however, that we will also need to re-submit the Model 720, the taxpayer that has ceased to be the owner of the property or rights located abroad who already had declared in previous years.
If you need help to present the Model 720 or has doubts about if it is required to make the declaration, you can contact us on the Contact section of our website, by email or phone.
