Modelo 720: Foreign Assets Declaration in Spain — Complete Guide

Modelo 720 is one of the most overlooked obligations for expats in Spain — and one of the most dangerous to miss. If you're a Spanish tax resident with foreign bank accounts, investments, or property worth more than €50,000 in any single category, you have a legal obligation to declare them. Here's everything you need to know.

What is Modelo 720?

Modelo 720 is Spain's "Declaration of Assets and Rights Located Abroad" (Declaración de Bienes y Derechos en el Extranjero). Introduced in 2012, it was designed to combat tax evasion by requiring Spanish tax residents to disclose their foreign assets to the AEAT (Spanish tax authority).

Modelo 720 is an informational declaration — it does not in itself create a tax obligation. But failing to file it, or filing inaccurately, can trigger significant penalties — and can lead the AEAT to question whether undisclosed foreign income exists.

Who must file Modelo 720?

You must file Modelo 720 if you are a Spanish tax resident (183+ days in Spain) and you have foreign assets exceeding €50,000 in any one of the three categories:

• Category 1 — Bank accounts: Foreign bank accounts (current accounts, savings accounts, deposits) where the total balance or average balance during the year exceeds €50,000
• Category 2 — Securities and investments: Shares in foreign companies, bonds, mutual funds, pension plans, life insurance policies, and participations in foreign companies where total value exceeds €50,000
• Category 3 — Real estate: Foreign property (owned or as beneficial owner) with a value exceeding €50,000

These thresholds are per-category, not combined. So if you have £40,000 in a UK bank account (under €50,000) and £45,000 in UK stocks (also under €50,000), you may not need to file. But if either exceeds €50,000, that category must be declared.

When to file

The annual filing window is January 1 to March 31. You are declaring assets held as of December 31 of the previous year.

First-year rule: When you first become a Spanish tax resident, you may need to file Modelo 720 for the year you arrive (if you held foreign assets at December 31 of that year above the thresholds).

Subsequent years: You only need to file again if the value of assets in a previously-declared category increases by more than €20,000, or if you acquire assets in a new category above €50,000.

What if your assets are under €50,000 per category?

You are not required to file Modelo 720. However, all foreign income (interest, dividends, rental income) from those assets must still be declared in your annual IRPF return. The AEAT receives automatic information about foreign accounts and investments from over 100 countries through the Common Reporting Standard (CRS).

Penalties for Modelo 720 failures

The original penalties for Modelo 720 were extremely harsh — and were found partly disproportionate by the EU Court of Justice in 2022. Spain subsequently reformed the penalties:

• Late filing (voluntary, after deadline): Fixed penalty of €100–200 per piece of information, with a minimum of €1,500
• Failure to file or incorrect filing: Fixed penalty of €250–500 per piece of information, minimum €10,000
• Fraudulent non-disclosure (hiding assets to evade tax): Tax assessment on undisclosed income + surcharges + penalties — potentially very large

The key takeaway: voluntary compliance (filing late but voluntarily) is treated far more leniently than being caught by the AEAT. If you've missed previous Modelo 720 deadlines, voluntary regularisation is strongly recommended.

Modelo 720 and the Beckham Law

If you are under the Beckham Law regime, your foreign assets and income are generally outside the Spanish IRPF base. However, Modelo 720 filing obligations apply to all Spanish tax residents — including Beckham Law recipients. The informational declaration is separate from the income tax treatment.

This is a nuance that many new expats miss. Beckham Law protects you from paying Spanish income tax on foreign-source income. It does not exempt you from declaring foreign assets.

Practical checklist

• List all foreign bank accounts, investment accounts, pension plans, and property
• Calculate value at December 31 of the prior year
• Identify which categories exceed €50,000
• File Modelo 720 online via AEAT by March 31
• Cross-reference with your IRPF return — all income from declared assets must appear