To access weekly financial tips and news, see our Facebook page:




MODELO 720 - Foreign asset declarations

There seems to be a lot of confusion about the tax return for residents of Spain who have to declare foreign accounts.


All residents of Spain holding any of the below assets outside of Spain on 31/12/2012 should make a declaration to the Hacienda (this is done using the document “Modelo 720”).  You have until 31st March each year to file this. Significant changes to your assets should be updated annually.

The information requested on the new Modelo 720 is as follows:

-    Bank accounts: name of the bank and full number of the account; date of opening; balance at 31 December 2012 and average balance for fourth quarter; name of holders . If the total balance or average balance for all the bank accounts held is below €50,000 it is not compulsory to provide this information.

-   Shares and bonds: name of the company issuing securities; value at 31 of December of 2012 and amount held (number of shares) and name of owners.

-   Units of Collective Investment Vehicles (Funds): name and address of the Fund Manager; amount of units (number); market value at 31 of December of 2012 and name of owners.

-   Life Insurance and annuity contracts: name and address of the insurance company; surrender or redemption value at 31 of December of 2012 and name of the holder of the contract.

-   Real estate / Property: type of real estate and location; date and value of acquisition. This information is also required in relation to timeshare units or any other legal rights to a property.

Also this information is required if you are the effective beneficiary of the assets mentioned above (for example assets held on your behalf in trusts and pensions).


There are some important exceptions to these reporting requirements;

-  Those under the non-resident tax regime (the “Beckham Rule”): it is assumed that overseas income is not taxable, therefore you do not have to file this return during the five qualifying years.

- Those holding Life Assurance Contracts with SEB (the Spanish Portfolio Bond) or Generali Pan Europe (Vision Plan):  These plans are overseas, but have been specifically registered for sale to Spanish residents, and as such are already reported to the Hacienda annually.  Due to the fact that reporting has already occurred for these plans, they do not need to be included on the modelo 720. 


In conclusion, clients holding a Spanish Portfolio Bond with SEB, or a Generali Pan Europe Vision do not need to put these plans on the Modelo 720.

Clients should include on the tax return assets held with any other company, such as Brooklands SIPP (which may contain the UK unreported SEB account), Zurich, Generali International, Hansard Europe, Hansard International, Skandia Ireland, Skandia International (also known as Royal Skandia), Royal London 360 and the Amalia Direct fund platform.

If you have already completed your return and have included plans with SEB or Generali, do not worry – we are not aware of any negative implications of this.  There have been warnings of significant fines by Hacienda (150% of the amount not declared) if declarations are not made and you are subsequently found to own any asset as outlined above.  If you have not filed this information when you should have - talk to your Gestor who may be able to make a retrospective return.


This information is designed to help you understand the new rules, and give advice about our understanding of the law in this regard. The information contained above comes from the Hacienda’s website, from investment institutions, and from a local accountant. It is our intention to provide simple, clear guidance, but it should be noted that this is not comprehensive tax advice. Taxation is a complex area and individual circumstances vary; so we would recommend you consult a specialist tax advisor if you need further help.