Sadly, I have to tell them they are now wrong on both counts. Firstly, on 15 February 2017, the European Commission accepted that Spain has the right to require residents to declare overseas assets, however, what the Commission does disagree with is the severity of punishments for late or inaccurate submissions. The EU commission has given the Spanish authorities 2 months to rectify this, otherwise it will take the matter to the EU Court of Justice. The requirement to submit the Modelo 720 form, however, is not under challenge.
Secondly, on the 31 May 2017, all EU countries, plus the UK and its Crown Dependencies and Overseas Territories, will automatically share all financial information on all financial assets held in their countries by tax residents of another country, to the country they are registered as being resident in.
As of 31 December 2016, these countries, dependencies and territories will report the value of all bank accounts, insurance policies, shareholdings, investments, and trusts, etc (regardless of the balance). Additionally, they will also notify them of what withdrawals have been made during 2016 and if an account has been closed during the year.
From May 2018, over 100 countries worldwide will automatically be sharing all financial information on an annual basis. The goal is to allow tax authorities to obtain a clearer understanding of financial assets held abroad by their residents, for tax purposes, and is primarily aimed at preventing tax evasion.
There are ways to ease this reporting burden and to ensure you stay on the right side of the taxman, whilst minimising your tax liabilities, one such way is to use a tax compliant investment bond.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
2018 has brought good news for many expats tackling the idiosyncrasies of finance in Spain and, especially for those who want to 
As an expat, choosing a robust life insurance policy, as well as medical insurance, can provide help to reassurance that you and your loved ones will be cared for should the worst happen. And recent research has highlighted just how valued such policies are.