For Spanish tax residents with overseas holdings, the Modelo 720 (Form 720) can be one of the most important, and misunderstood annual obligations. This declaration form, while not a tax return itself, carries significant penalties if filed late or incorrectly.
If you’re wondering how to complete Modelo 720 in 2025, you’re not alone. Many expats and long-term residents find the process unnecessarily bureaucratic, especially when dealing with foreign pension schemes, shared investments, or complex asset structures.
This guide outlines who needs to file, what information must be declared, and how to navigate the submission process with confidence.
Modelo 720 was introduced in 2012 as part of Spain’s effort to combat tax evasion and increase financial transparency. It obliges tax residents to report foreign assets if their total value in any one of three broad categories exceeds €50,000.
These categories include:
Unlike traditional tax forms, Modelo 720 is purely informative.
However, inaccurate or incomplete filings can lead to administrative fines and further scrutiny from the tax authorities. Despite recent EU rulings that challenged the proportionality of Spain’s penalty system, fines for late or incorrect filings remain firmly in place.
Any individual classified as a Spanish tax resident as of 31 December 2024 is required to submit the Modelo 720 if they hold foreign assets above the reporting threshold.
"Residency is generally determined by spending more than 183 days in Spain within the calendar year or maintaining one’s primary economic interests in Spain. ”
Reporting is only required for asset categories where the total value exceeds €50,000. Notably, once an asset is declared, you’re not obliged to resubmit the same information annually unless new assets are added or the value increases by more than €20,000 in any single category.
This declaration is individual, meaning that married couples must file separately if both meet the criteria. It is also important to include jointly held assets, not just those under your name alone.
Example: A UK-based pension jointly held by spouses with a defined value of over €50,000 must be reported by both individuals, even if it’s not yet in drawdown. In practice, this often leads to questions about proportional ownership and accurate valuation.
Even if you’ve filed Modelo 720 in a previous year, you may still need to submit a new declaration for 2025. A fresh submission is required if:
The table below offers real-world examples of situations where a new Modelo 720 would be required in 2025:
| Scenario | Required Action |
|---|---|
| You opened a new Swiss bank account in 2024 worth €52,000 | Declare under "Bank Accounts" by March 31, 2025 |
| Your French investment portfolio grew from €45,000 to €68,000 | Declare under "Securities" even if already declared before |
| You closed a UK pension plan during 2024 | Report closure details in the 2025 Modelo 720 |
Staying alert to these changes is key to avoiding non-compliance.
If you’re unsure whether an asset counts as new or has appreciated enough to trigger a new declaration, you can seek professional advice on how to complete Modelo 720 with Private Client Consultancy or watch our webinar on this topic.
Completing Modelo 720 starts with gathering precise information and ends with navigating Spain’s online tax portal, a task that often proves more difficult than expected, especially for first-time filers.
The first step is collecting all relevant financial documentation.
This includes:
While this may sound straightforward, the process requires more than simply printing statements.
Asset values must reflect the correct figures as of 31st December 2024, and they must be converted into euros using the official exchange rate published by the Bank of Spain.
Inaccuracies, even unintentional ones, can lead to complications, so attention to detail is key.
Once your documents are ready, the next step is to access the Spanish Tax Agency’s website — www.agenciatributaria.es — and locate the section for Declaraciones Informativas (Informative Returns).
Modelo 720 is only submitted electronically, so you’ll need to log in using either a digital certificate (Certificado Digital) or the Cl@ve PIN identification system.
Many expatriates find it worthwhile to test their access credentials in advance, as resolving login issues during the submission period can be stressful.
Modelo 720 is divided into three key asset categories:
Each category must be reported separately, with precise and consistent information.
For bank accounts, you’ll need to provide the name of the financial institution, branch address, account numbers, the date the account was opened, and the highest or final balance as of 31 December 2024.
For real estate, you must declare the property’s full address, acquisition date, purchase value, and your percentage of ownership. This applies whether the property is a second home or part of a co-owned inheritance.
For securities, pension funds, and life insurance, the form requires detailed information such as the name of the issuing company, contract or policy numbers, the value at year-end, and acquisition details.
Summary of Required Information:
| Category | Information Required |
|---|---|
| Bank Accounts | Bank name, branch address, account numbers, opening date, year-end balance. |
| Real Estate | Address, acquisition date, purchase value, percentage of ownership. |
| Securities and Insurance | Company name, policy numbers, value at year-end, acquisition details. |
Accuracy and consistency with supporting documentation are essential, as the Spanish authorities retain the right to cross-reference with international tax data.
After carefully entering the data and verifying it matches your supporting documents, you’re ready to submit.
There is no paper version, Modelo 720 must be filed online, and submission is only possible with valid digital authentication.
Once the declaration is sent, the system will confirm receipt with a reference number. We recommend saving this confirmation as a PDF immediately.
Even after submission, your work isn’t quite done. You must retain both the submission confirmation and all relevant supporting documents for at least four years.
This is crucial in case of future audits or reviews by the tax authorities. Keep both digital and physical copies where possible, and ensure records are clear and complete.
Many residents assume that because they’ve declared their income through regular tax filings, Modelo 720 doesn’t apply to them.
This can be a costly misconception as failing to report a qualifying asset can still trigger fines, even if that asset has generated no taxable income.
Other common errors include:
| Period | Action |
|---|---|
| Jan 2025 | Review prior declarations and assess changes |
| Early Feb | Gather documentation, check euro conversions |
| Mid-Feb | Test access to Agencia Tributaria portal |
| Late Feb | Complete and review declaration |
| By 31 Mar | Submit Modelo 720 and save confirmation |
Although a 2022 ruling by the European Court of Justice forced Spain to reduce its harshest fines, the system remains far from lenient.
Filing late can still incur penalties ranging from €100 to €1,500 per group of assets, while omissions or factual inaccuracies may result in fines of up to €5,000 per item.
In cases where unreported income is discovered, tax authorities may apply backdated tax charges and surcharges of up to 150%.
In short, failing to comply with Modelo 720 isn’t just a bureaucratic risk, it’s a financial one.
No. After the initial filing, you only need to declare again if there are new assets or if an asset category increases in value by over €20,000.
Yes, if the pension fund is accessible or has a measurable value, it must be declared.
No. It can only be filed electronically through the Agencia Tributaria platform.
Yes, but most people, especially those with complex portfolios, use a tax advisor or wealth manager to ensure full compliance.
Inaccuracies can result in financial penalties and may trigger further scrutiny from tax authorities.
Completing Modelo 720 is crucial for Spanish tax residents with foreign assets. It requires precise reporting, full documentation, and timely submission.
Avoiding mistakes and understanding asset thresholds can protect you from fines and maintain your financial reputation.
If you have complex structures like trusts, foreign pensions, or joint ownerships, consulting a Wealth Manager experienced in Spanish tax law can greatly simplify this process.
If you’re filing Modelo 720 for the first time, start early. Gathering correct figures and understanding euro conversions takes longer than expected. With the right guidance, it can be straightforward.
For support with Modelo 720 or related tax matters, contact us to ensure peace of mind and compliance.
Disclaimer: Tax laws, rates, and reliefs are subject to change and may vary depending on individual circumstances and residency status. Any information provided on this website is based on our understanding of current regulations (or the date of when the content was published) and should not be considered personalised financial or tax advice. As tax obligations can differ across regions, countries and evolve over time, we strongly recommend seeking professional advice tailored to your specific situation before making any financial decisions.
Wealth Management With
Peace of Mind
All content © Private Client Consultancy. All rights reserved. 2025
Get notified about new articles, latest changes and much more