Modelo 720: who must declare overseas assets in Spain

Moving to Spain does not mean closing bank accounts, selling investments or giving up a home you keep in another country. Keeping that wealth, however, can create reporting duties before the Spanish tax agency (Agencia Tributaria).

Modelo 720 is the Spanish information return for certain assets and rights situated abroad. For individuals, it mainly concerns tax residents in Spain who meet the requirements of each category of asset.

It does not depend on having Spanish nationality or on receiving income from those assets. To know whether you must file, you need to review your tax residence, your relationship with the assets and the applicable thresholds.

What is Modelo 720?

Modelo 720 is an information return covering certain assets and rights situated outside Spain.

Filing it does not, by itself, mean paying a tax. Its purpose is to give information to the tax agency. That must be distinguished from any duties that may arise under personal income tax (IRPF), wealth tax or other taxes.

Reporting a foreign account therefore does not replace declaring the interest it produces where that interest is taxable in Spain. Nor does reporting a home on Modelo 720 automatically settle how it is treated for other taxes.

Who must file Modelo 720?

This guide focuses on individuals, although the rules also cover resident companies, permanent establishments and certain entities.

For individuals, it should be reviewed in particular by those who are tax residents in Spain and hold assets or rights abroad within the categories subject to reporting.

Not everyone living in Spain is covered: the tax agency states, for example, that people taxed under the special posted-workers regime are not obliged to file this return. Each situation must be checked.

Beyond ownership, other positions may matter, such as being an authorised person on an account or the beneficial owner of certain assets. Exceptions exist and must be checked before concluding that a filing duty applies.

Nationality does not determine the duty

A German, British, French or any other national may have to file Modelo 720 if they are tax resident in Spain and meet the requirements.

Equally, a Spanish national living abroad is not obliged merely because of nationality. Special situations exist, but the analysis must start from their tax status.

Owning a home in Spain is not the same as being tax resident

Buying a property in Spain or holding an NIE does not, by itself, determine tax residence.

The criteria to examine include staying more than 183 days in the calendar year and where the main centre of activities or economic interests is located. Family circumstances may also matter and, where two countries are in conflict, the applicable double taxation treaty.

Before reviewing the figures for Modelo 720, it is worth confirming where you are tax resident for the relevant year.

Which assets are reported on Modelo 720?

The return brings together three separate reporting duties:

Each block must be analysed separately. Being obliged to report one does not mean the other two must automatically be included.

1. Bank accounts abroad

It is not enough to look at how much money an account held on the last day of the year. There is no obligation where neither the joint balances at 31 December nor the joint average balances of the last quarter exceed 50,000 euros; if either of those joint figures is exceeded, all the accounts must be reported.

The person’s position on each account must also be checked. The rules cover holders, representatives, authorised persons, beneficiaries and persons with powers of disposal, as well as certain beneficial owners.

2. Investments, insurance and income

This block may include shares, investment funds and certain life or disability insurance policies, as well as temporary or lifetime annuities.

Valuation depends on the product. The amount invested, the available balance and a personal estimate cannot be used interchangeably: the relevant rule must be applied and documentation obtained from the institution.

3. Homes and other immovable property

A home you keep in your country of origin may be covered even if you do not rent it out.

Ownership, the right you hold and the value the return requires must be reviewed. For immovable property, the information is normally based on the acquisition value; for rights of use, enjoyment or bare ownership, the wealth tax valuation rules apply.

Where ownership is shared, the recorded percentage and the declared value must be reviewed, rather than comparing only your share with the threshold before checking how the return is completed.

How does the 50,000 euro threshold work?

The initial 50,000 euro threshold is considered for each block, adding together the assets and rights to be counted within it.

It is not a threshold per account, per property or per country. Nor are the three blocks added together to apply a single limit.

For example, if you hold two foreign accounts with balances at 31 December of 30,000 and 25,000 euros, together they reach 55,000 euros. A duty could arise for the accounts block even though neither account individually exceeds 50,000 euros.

By contrast, 30,000 euros in accounts and 30,000 euros in investments do not, by that sum alone, exceed the threshold of either block. The other conditions, including valuations and possible exemptions, would still have to be checked.

What is the deadline for Modelo 720?

The general filing window runs from 1 January to 31 March of the year following the reporting year.

Under the rules in force in November 2026, information for 2026 would generally be filed between 1 January and 31 March 2027.

Bank certificates and investment documentation should be requested in advance, especially where they come from several institutions or countries.

Must it be filed every year?

Not necessarily.

After a first filing, you must check whether the joint value of the relevant block has increased by more than 20,000 euros compared with the figure that triggered the last filing. For accounts, the increase is measured on the declared balances, both at 31 December and the average of the last quarter.

Certain transfers, cancellations or losses of the previously reported position can also create a new duty; for immovable property, the rules expressly provide for this where ownership ends. Checking whether the wealth has increased is therefore not enough.

What documentation should you prepare?

For an initial review, gather:

• Information on your tax residence during the year.
• Account certificates showing the balance at 31 December and the average balance of the last quarter.
• Details of holders, co-holders, authorised persons and percentages of ownership.
• Valuation certificates for investments and insurance.
• Documents for the acquisition of properties and rights over them.
• Information on sales, cancellations and changes of ownership.
• Copies and receipts of earlier Modelo 720 filings.

Keeping this documentation in order makes it easier to check whether a duty exists and avoids entering figures that do not match the required valuation.

Common mistakes when reviewing Modelo 720

Mistakes often begin before the return is filed: confusing administrative residence with tax residence, analysing each account separately, or assuming that a home that is not rented needs no review.

Another common confusion is to think that automatic exchange of information between countries replaces the personal return. The duty on the taxpayer must be checked even where a financial institution reports data through other channels.

Nor should any foreign asset be included without analysing its nature. Virtual currencies are not reported on Modelo 720; they may be subject to a different duty, Modelo 721.

What happens if it is not filed or contains errors?

Modelo 720 remains in force. The 2022 reform changed its penalty regime and removed the specific penalties that applied before.

The tax agency now refers to the general regime of infringements and penalties in articles 198 and 199 of the General Tax Law, applied separately to each of the three blocks.

If you find an omission or an incorrect return, the year, the assets affected and the way to correct it should be reviewed. The penalties quoted in articles published before the reform should not be applied automatically.

Frequently asked questions about Modelo 720

Do I have to file if I am a non-resident with a home in Spain?

Mere ownership of a home in Spain does not, by itself, create a duty to file Modelo 720. The duties of a non-resident owner must be distinguished from those of a tax resident holding assets abroad.

Must an account that pays no interest be reported?

The absence of interest does not by itself remove the reporting duty. The balances, your position on the account and the applicable exceptions must be checked.

Do I have to transfer my money to Spain?

Modelo 720 creates a reporting duty. Filing it does not, by itself, require moving the reported assets to Spain.

Does filing it mean paying an additional tax?

It does not involve a tax assessment. The tax duties that may apply to those assets and their income must, however, be reviewed separately.

Review your duties on assets held abroad

If you live in Spain and keep assets in another country, an early review identifies which assets need analysis and what documentation you need before filing Modelo 720.

At MH Legal & Seguros we can help you review your position and coordinate advice on your Spanish duties, in your language and with offices in Dénia, Gandía and Villalonga.

Contact our team at info@mhlegalyseguros.com to discuss your case.

Official sources consulted

These references were checked in November 2026. Before filing a return, it is worth confirming that they remain in force.