New Spanish tax obligation: declaration of assets held outside Spain

By: Transfer Business Administration Services Spain

The Spanish government has adopted a new regulation, Orden HAP/72/2013, from January 30, that obliges residents in Spain to declare all assets held and located abroad.

What to declare?
- Bank accounts and deposits at banks and other financial institutions located abroad.
- Securities located abroad.
- Real estate located abroad.

There will be no obligation to declare in the following cases:
- When the value of these assets does not exceed € 50,000. Each of the 3 categories considered separately.
- When the assets are indentified separately in the accounting books of the company.

Who is required to report?
- Natural persons and legal entities resident in Spain.
- Permanent establishments of both individuals and corporations in Spain.

How to inform?
Filing the form 720.

The period to file the form for 2012 is between the 1st of February and the 30st of April 2013. For the consecutive years, it will be between the 1st of January and 31st of March of the following year.

Sanctions in case of non-fulfilment
Missing information: 5.000€ per each missing data. The minimum fine will be 10.000€.
Hiding information: If the tax agency finds hidden assets and the company or the person cannot justify the provenance of the asset, the tax agency will add that revenue to the income. The revenue not declared will be paid, plus a fine of the 150% of that payment.

If the above situation applies to you, please contact us for support.