Form 720: Informative return on assets and rights located abroad
We would like to remind you that the deadline for filing the informative return on assets and rights located abroad (form 720) for the financial year 2022 is between 1 January and 31 March 2023.
This tax reporting obligation regarding assets and rights located abroad was introduced in 2012 and for subsequent years by Law 7/2012, of 29 October, amending tax and budgetary regulations and adapting financial regulations to intensify actions to prevent and combat fraud.
Three different blocks of assets and rights located abroad that shall be reported are the following:
- Accounts in financial institutions located abroad where the taxable person is listed as holder, representative, authorized, beneficiary, a person with power of disposal, or beneficial owner.
- Securities and insurance:
- Securities or rights representative of the participation in any legal entity in which the taxpayer appears as a holder.
- Shares and participations in the capital stock or equity fund of collective investment institutions, in which the taxpayer is the holder.
- Life or disability insurance of which the taxpayer is the policyholder on December 31, when the insurance company is located abroad.
- Temporary or life annuities result from the delivery of a capital sum to entities located abroad in which the taxpayer is the beneficiary.
- Real estate and rights in rem thereon, in which the taxpayer appears as owner.
Each of the aforementioned groups of information (1. accounts / 2. securities and insurance / 3. real estate) constitutes a different reporting obligation.
If this form has never been filed in the past, or if it has only been filed in relation to one of the aforementioned groups of assets, with regard to the groups of assets that have never been declared in said form (1. accounts / 2. securities and insurance / 3. real estate), there will be an obligation to file the declaration in those cases in which the total amount of each group of assets exceeds 50,000 Euros. However, it must be taken into account that when there are multiple holders, the amount of the asset or right is not prorated.
If there are groups of assets that have already been filed in the past, you will only be obliged to report these groups again if:
- Any joint balances of the three different blocks of assets previously commented have experienced an increase of more than 20,000 euros concerning the one that determined the filing of the last return.
- In any case, in subsequent years, it will be obligatory to file the return when the status of the taxpayer with the obligation to file (holder, representative, authorized person, beneficiary, person with power of disposal, or real owner of the asset in question) has changed or has been extinguished during the year, before December 31, in relation to any of the assets reported.
You can consult the complete information on Form 720 on the Tax Office website at the following link: Consulte
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