NEWS
MODEL 720
Vélez-Málaga - 18 ene 2019
If you started living in Spain last year, check
if you must present the declaration of assets abroad (model 720). You can do it
until March 31.
Resident since 2018: If you started living in Spain in
2018, in addition to having to present the Income Tax declaration and the
Wealth Tax, you may also be required to submit the Declaration of Assets Abroad
(model 720), whose term of presentation ends on March 31, 2019. This will occur
if, at December 31, 2018, he held accounts, securities or real estate abroad
with a total value (per type of asset) of more than € 50,000.
“Impatriados no”
(workers displaced to Spanish territory): This obligation does not affect those who
start to reside in Spain and take refuge in the "Immigrated regime".
Through this system, during the year of their displacement and the following
five, those affected will be able to pay according to the rules of the
Non-Resident Income Tax (IRNR), instead of doing so according to the Personal
Income Tax, so during that period no they will be obliged to present the
mentioned model 720.
Resident since before
2018: It is late.
It may happen that he is already resident in Spain since before 2018 and that,
due to ignorance, he has not presented the model (this situation is occurring
with many foreigners who have begun to live in Spain in recent years and who
were unaware of the obligation). In these cases, it is best to present the 720
model corresponding to the year in which you began to reside in Spain, before
the Treasury claims it. Thus, the sanction for submission after the deadline
will be reduced:
- No requirement. In case of
extemporaneous submission without prior notice, the penalty is €100 per item or
set of data declared late, with a minimum of € 1,500.
- With requirement. If there is a requirement,
the sanction is € 5,000 per data or set of omitted data, with a minimum of €
10,000.
If you file the statement late and you are
sanctioned, you have to consider recourse. Although this will mean the loss of
the 25% reduction on the penalty (applicable when the sanction is not appealed
and paid on time) it is very possible that the courts end up giving the reason.
For these purposes, it can be argued against:
- In the first place, that the EU has initiated
proceedings against Spain with the aim that this sanctioning regime be
modified, because it is disproportionate.
- Secondly, in the case of foreigners who begin
to reside in Spain, the presentation of this model supposes an extraordinary
novelty and a great technical and interpretative difficulty. In view of the
important discrepancies that have occurred around this model, in this
particular case, the lack of presentation is not enough to consider that there
has been culpability.
- Third, if more than four years have passed
since you started living in Spain and you had to file the 720 model (for
example, if you are a resident since 2013), claim that the term available to
the Treasury to sanction has already prescribed .
If you started to reside before 2018, present
model 720 after the deadline and resort to the sanctions imposed. Remember that
the EU considers that the sanctions imposed in these cases are
disproportionate.