1.- Form 720
Taxpayers subject to both Personal Income Tax (IRPF) and Corporate Income Tax (IS) who own assets and rights located abroad are obliged to file this form electronically (the filing of this form is also obligatory for Unsettled Estates).
The information to be provided in this form is divided into three different blocks and affects both legal holders and real holders, authorised, representatives, beneficiaries or holders with power of disposal.
1. Accounts, of any kind, held in financial institutions.
2. Securities, insurances or annuities:
- Securities or rights representing holdings in any type of legal entity, securities representing a transfer to third parties of their own capital, or values contributed for their management or administration to any legal instrument that are located abroad and are held in the taxpayer’s name. By way of example, this would include corporate shares, bonds or other loans represented by securities.
- Shares and holdings in the share capital or equity fund of collective investment institutions located abroad.
- Life or disability insurance for which they are policyholders at 31 December if the insurer is located abroad.
- Temporary or life annuities as a consequence of the delivery of a capital sum in money, of rights of economic content or of movable or immovable property, to entities located abroad of which the taxpayer is the beneficiary.
3. Immovable property and rights in rem thereon, which are located abroad and of which the taxpayer is the legal or beneficial owner.
Notwithstanding the above, there is no obligation to file form 720 in the following cases:
- When the total assets and rights of each of the three blocks of assets individually considered do not exceed 50,000 euros. In calculating the above limit, the overall valuation of the assets must be taken into consideration regardless of the degree of participation of each taxpayer.
- Nor will there be any obligation to file the form, except in cases of cancellation or sale, when any of the joint balances of the three different blocks mentioned above has not experienced an increase of more than 20,000 euros with respect to the balance declared in the form 720 relating to the previous financial year.
- The submission shall not be compulsory for legal entities that have the assets and rights recorded in their accounts individually and identified by their number, credit institution and branch.
- The period for submitting Form 720 runs from 1 January to 31 March.
2.- Survey on foreign transactions or statement (ETE).
Individuals and legal entities who are residents in Spain that have carried out transactions with non-residents and/or hold balances of assets and liabilities abroad during the calendar year are obliged to file this form with the Bank of Spain, which must be filed by telematic means.
In general, the information for each year shall be provided on an annual basis between 1 and 20 January of the following year if the amounts of transactions during the immediately preceding year or the stocks of assets and liabilities on 31 December are less than 100 million euros. However, where the amount does not exceed 1 million euros, the statement shall only be sent to the Bank of Spain at the express request of the latter.
We are at your disposal to prepare and submit, as clients of the firm, the informative statement contained in the aforementioned form 720 as well as the ETE return, should you so wish.
The information necessary for the preparation of both statements is attached hereto as an APPENDIX.
