Contact

News & Insights

Spanish Asset declaration: Modelo 720

The assets are divided into three groups:

The main issue of contention with this reporting requirement is the draconian fines that are currently being imposed. 

Should the Spanish Tax authorities discover that you have assets with a cumulative value over €50,000 in any of the above groups and deem that you have wilfully not disclosed this information, the penalties are imposed, in some cases the fines issued are as high as 150% of the value of the undeclared assets. Also with regards to the Modelo 720 there is no statute of limitations on how many years they can go back.

Complaints about the unfairness of the fines were forwarded to the EU, who decided to look into this issue. As a result of this review on 15 February 2017, the European Commission gave the Spanish government a two-month ultimatum to make Modelo 720 penalties fairer.

The Spanish tax authority, known as the Hacienda, failed to meet the deadline set by the European Commission, the Commission vowed to take the case to the European Court of Justice.

The latest update (10 July 2017) is that, at present, the 1,500 euros penalty for non-declaration still remains but the Spanish Tax Authorities will no longer impose the penalty of 150% of the value of the undeclared assets, if there is voluntary (even if late) declaration of the Modelo 720.

Whilst this still doesn’t resolve the whole issue of unjust and unfair fines it does mean they are at least starting to make the voluntary reporting of assets easier.

The Spanish government insists that it will go all the way to defending the model 720 sanctions regime and that it is prepared to defend its arguments before the Court of Justice of the European Union. The Hacienda believes that thanks to this measure it has obtained a database that will help it combat tax fraud, especially with regards to wealthy taxpayers with more facilities to avoid tax.

They have however hinted that they may potentially soften some sanctions, such as capping the fine for errors in completing the form. They also suggested a possible reduction in penalties for failing to declare assets based in EU countries or in states that have signed automatic exchange of information agreements with Spain.

Other News

QROPS transfers to get cheaper

CubeIt has just become more straightforward for those looking to transfer their pensions into a QROPS in France, with many pension providers promising to drastically reduce their exit charges in the wake of comments from Chancellor George Osborne saying he will introduce legislation to cap costs.

This comes in the wake of concerns that some savers have been discouraged from making the most of flexible pensions access because of exit charges of between 5% and 10%.

Osbourne commented, “The government will not allow financial firms to rip off customers who have spent their working lives saving hard for retirement.”

Read More

Why You Don’t Need A Financial Adviser in This Crisis

Francisco MahfuzThe market crashed because people panicked, but their fears were exaggerated.

The market collapsed again because Covid-19 is the end of the world as we know it.

The markets came back because the US government agreed a 2-trillion relief package. Then they crashed because that wasn’t enough.

Read More

Select your country

Please select your country of residence so we can provide you with the most relevant information:

You are currently viewing the Blacktower Financial Management EU website.

You may be looking for the Blacktower United States website.

Blacktower United States > X Stay on this site

Or choose your country.