As you are probably aware, the Spanish Government introduced a Law (7/2012) to fight and prevent fraud; therefore, all personal or company residents in Spain are under an obligation to submit information regarding assets outside of Spain by means of declaration form 720 which has to be submitted by the 31st of March 2016 and has to be completed by a registered accountant unless you have an electronic signature with the Spanish Tax Office.
The overseas assets to be declared will be those that are worth more than 50.000€ per asset category (see below), whether properties, bank accounts, values, shares, securities or rights, equities, trusts, bonds, insurance policies or QROPS, whether held in your own name or jointly, and including situations where you act under a Power of Attorney, or are a signatory, beneficiary or representative, all as at the 31st of December 2015. For this year and future years, the declaration will have to be submitted only when the assets no longer exist or their value has increased by 20.000€ or more or there is a new asset in any category.
In order to help you through this procedure, please feel free to make an appointment so we can look at the paperwork and clarify any queries you might have.
When you make the appointment, you will need to bring with you the following details:-
- Bank Accounts
Name and address of bank or financial institution including post code, account number including IBAN and BIC. What sort of bank account i.e. current, savings, deposit, etc, and the date the account was opened. The balance as at 31st December 2015 and average account balance over last quarter of 2015.
- Investments, shares, ISAS, Bonds, Trusts, QROPS, Annuities, Life Insurances etc.
Please note that Life Insurances with NO SURRENDER VALUE (i.e. only payable on your death) DO NOT have to be declared. However, any life insurances etc. where you are named as BENEFICIARY will have to be declared. If in doubt as to whether to declare an asset, it should be declared as the consequences of not doing so could be severe.
The name and address of the investment company including post code, the policy, account or reference number, the date of purchase, the number of shares and percentage of participation, and the value as at 31st December 2015.
- Properties, including houses, land etc. owned or over which you have rights. The address of the property including post code, the date of purchase and the price at that time, including taxes paid, the percentage of your share and whether rural or urban property. If the property was sold during the year 2015, the date and value of the sale.
We also need copies of your NIEs and passports and your full residential address in Spain if you have not made a tax declaration with us previously.
YOU SHOULD PLEASE NOTE THAT FAILURE TO MAKE THE DECLARATION WILL RESULT IN AN IMMEDIATE FINE OF A MINIMUM OF 10,000€
The above is only a summary of the current tax law as at January 2016. Each case will be subject to its individual circumstances.