A guide to Form 720 for declaring foreign assets in 2026
Area: International tax
Who this is for: individuals, investors and expatriates with assets abroad
Sources reviewed: BOE, CJEU and the Spanish Tax Agency
Form 720 is the informational return that requires Spanish tax residents to report certain assets and rights held outside Spanish territory to the Tax Agency. It is not a tax in itself, but failing to comply with it can end up costing far more than any ordinary tax liability.
Many people who move to Spain — executives, investors, retirees or professionals who relocate their tax residence here — are unaware that, once they become tax residents, their bank accounts, investments or properties in their home country may become subject to this obligation. Not knowing about the rule does not exempt you from it, and the deadlines and thresholds are strict.
The risk of an incorrect or missing declaration is no longer what it used to be: the Court of Justice of the European Union ruling of January 2022 forced Spain to soften a penalty regime the court itself considered disproportionate. Even so, a missing declaration can still lead to the assessment of an unjustified capital gain, with the corresponding cost in personal income tax.
This guide reviews what Form 720 is, who must file it, which assets fall within the obligation, the current deadlines, how the penalty system stands after the European ruling, and which mistakes are worth avoiding when declaring.
What Form 720 is and who must file it
Form 720 is a purely informational return: it does not settle any tax by itself, but it allows the Tax Agency to know what assets a tax resident holds outside Spain. The obligation applies to individuals and legal entities that hold Spanish tax residency, regardless of nationality.
This includes a group that is especially relevant for newcomers: foreign nationals and expatriates who become Spanish tax residents, whether for work, investment or personal reasons, and who keep accounts, investments or property in their home country. If you have recently relocated to Spain and want to understand how your new tax residency affects your obligations, our international tax advisor service explains the initial steps worth reviewing.
It does not matter whether the asset was acquired before or after moving to Spain: what matters is the wealth position at the moment the reporting obligation arises. An executive who moves to Barcelona with a securities portfolio in their home country, or an investor who keeps a bank account in Latin America, may be required to file Form 720 even if they had no previous tax relationship with Spain.
Important legal nuance: the obligation is individual, not per household. If an account or property has several holders (for example, spouses under a community-property regime), each holder must assess whether their percentage of ownership exceeds the relevant threshold.
When declaring is mandatory
Form 720 groups assets into three independent categories, each valued separately. A common mistake is adding up the value of all assets as if they formed a single pool of wealth: that is not how it works. You may be required to declare only one of the three categories and not the other two, depending on which threshold is exceeded in each case.
| Category | What it covers | Threshold that triggers the obligation |
|---|---|---|
| Financial accounts | Current accounts, savings accounts and deposits at foreign institutions. | €50,000 combined for the category. |
| Securities, insurance and income rights | Shares, investment funds, life insurance and crypto-assets held by third parties. | €50,000 combined for the category. |
| Real estate | Property and rights over property located outside Spain. | €50,000 combined for the category. |
Assets located in Spain fall outside this obligation, as does any balance or holding that does not reach the minimum threshold within its category.
The reporting obligation only arises when the combined value of the assets in each category exceeds €50,000. In other words, there is no need to declare a €30,000 bank account or a €45,000 property if that threshold is not reached within the relevant category.
A point that raises many questions: if Form 720 was already filed in a previous year for a given category, there is no need to file it again every year, unless the value has increased by more than €20,000 compared with the last declaration filed, or a special circumstance occurs (loss of ownership, change of institution, and so on). This should be checked carefully before assuming that “it was declared once, so nothing more is needed.”
Practical example: an investor declared a securities portfolio worth €80,000 in 2023. By 2025, that portfolio is worth €95,000. Since the increase (€15,000) does not exceed €20,000, there is no obligation to file Form 720 again for that category, although it is still worth documenting the valuation in case the Tax Agency requests supporting evidence in the future.
Deadlines and how to file
The Form 720 filing deadline runs from 1 January to 31 March of the year following the one to which the declared information refers. In other words, assets and rights held as of 31 December 2025 must be declared between 1 January and 31 March 2026.
This deadline cannot be extended and the return is filed electronically through the Tax Agency’s electronic office. There is no option to file Form 720 late without consequences: although the penalty regime has been softened following the European ruling, a surcharge for late filing still applies, which is best avoided by planning the declaration in advance.
Recommended action: if this is the first time you are filing, or if there have been relevant changes to your assets during the year, it is worth starting to gather the documentation (bank statements, property valuations, certificates from financial institutions) during January, rather than waiting until the last weeks of March.
What changed in penalties after the CJEU ruling
This is probably the point that causes the most confusion for people who have heard of Form 720 but have not followed how the rules evolved. The original penalty regime, introduced by Law 7/2012, provided for fines of €5,000 per item or set of omitted data, with a minimum of €10,000, in addition to the possibility of treating the undeclared asset as an unjustified capital gain not subject to any statute of limitations.
The Court of Justice of the EU ruling (Case C-788/19) of January 2022 found this regime to be contrary to EU law, as disproportionate compared with the penalties applicable to similar breaches within Spain. As a result, the Spanish legislator had to amend the system: penalties for failing to file Form 720, or for filing it with errors, are now aligned with those for other similar informational returns, such as Form 347 or Form 349.
Important clarification: this does not mean Form 720 has stopped being mandatory, nor that failing to file is harmless. It means the fine for a purely formal breach is now much more moderate and proportionate, in line with the rest of the Spanish tax system.
What happens if the Tax Agency discovers an undeclared asset
It is worth distinguishing two things that are often confused: the formal penalty for not filing Form 720 (now moderate, as noted above) and the regularisation of the undeclared asset itself if the Tax Agency finds out through other means.
If the Tax Agency detects an asset abroad that should have been declared and was not, it can still treat it as an unjustified capital gain, adding it to the general taxable base of personal income tax for the oldest non-time-barred tax year, unless the taxpayer proves the asset was acquired with already-declared income, or in a year in which they were not a Spanish tax resident. This is the part of the system that still carries the greatest economic impact and that does not disappear as a result of the CJEU ruling, since the ruling focused specifically on the penalty regime, not on the reporting obligation itself or on the tax treatment of the undeclared asset.
Warning: proving the origin of old funds, especially if they come from another country or from an inheritance received years earlier, can be difficult if the right documentation was not kept. The sooner your foreign asset position is reviewed, the easier it is to gather the necessary evidence.
Common mistakes when declaring foreign assets
The most frequent errors when filing Form 720 are usually not deliberate, but the result of a lack of technical knowledge: valuing a property incorrectly (the acquisition value must be used, not the cadastral or current market value), forgetting to declare a life insurance policy with a surrender value, miscalculating shared ownership, or confusing the per-category threshold with a combined one.
It is also common for people who have recently moved their tax residence to Spain not to realise they are obligated until the deadline has already passed, which leads to late filings that could have been avoided with an earlier review.
That is why, before filing Form 720, it is worth drawing up a complete inventory of accounts, investments and properties held abroad, valuing them according to the specific criteria for each category, and confirming whether either threshold (€50,000 initial or €20,000 increase) has been exceeded. An international tax advisor can review this inventory with the taxpayer before the deadline to avoid both missed filings and valuation errors, which can also trigger later requests for information from the tax authority. If you also have doubts about which advisory option best fits your wealth profile, you can consult our international tax advisory service for a case-by-case assessment.
Document checklist before filing Form 720
- Statements or certificates from foreign financial institutions showing balances as of 31 December.
- Documentation of securities, funds, shares and insurance policies with a surrender value.
- Deeds or evidence of the acquisition value of real estate.
- Confirmation of the €50,000 threshold for each category and the €20,000 increase if already declared before.
- Review of shared ownership and each holder’s individual percentage in accounts or properties.
How GraciaCalbet can help you
At GraciaCalbet we have spent more than 45 years supporting individuals, investors and companies with their tax obligations, with particular experience in international tax matters. We help Spanish tax residents — including many foreign nationals and expatriates — determine whether they must file Form 720, review which assets need to be declared in each category, and prepare the required documentation within the legal deadline.
Our team reviews each case individually: the situation of someone who has lived in Spain for years with investments in their home country is not the same as that of someone who has just moved their tax residence and does not know whether their assets exceed the relevant thresholds. We also advise on regularising assets not declared in previous years, weighing the different options available depending on each situation.
Frequently Asked Questions (FAQs)
Who is required to file Form 720?+
Spanish tax resident individuals and legal entities that hold, represent, are authorised over, or are beneficiaries of accounts, securities or property abroad worth more than €50,000 in any of the three categories (accounts, securities/insurance/income, real estate) are required to file. This includes foreign nationals and expatriates who have become Spanish tax residents, regardless of nationality or when the assets were acquired. If you are unsure about your personal situation, it is worth reviewing it case by case, since tax residency does not always match administrative residency or local registration.
When is Form 720 filed?+
The filing period runs from 1 January to 31 March of the year following the one the information relates to. For example, assets held as of 31 December 2025 are declared between January and March 2026. Filing is done electronically through the Tax Agency’s electronic office, and the deadline cannot be extended, so it is best to gather the documentation well in advance.
What happens if I do not file Form 720 when required to?+
Following the 2022 CJEU ruling, the formal penalty for not filing Form 720 has been reduced and aligned with that of other similar informational returns. However, if the Tax Agency later discovers an undeclared asset, it can still treat it as an unjustified capital gain in personal income tax, unless the taxpayer proves the origin of the funds or that the asset was acquired before becoming a Spanish tax resident. So even though the penalty risk has been reduced, a missing declaration still carries significant economic consequences.
Do I have to file every year if I already submitted Form 720 before?+
Not necessarily. If Form 720 was already filed for a given category of assets in a previous year, you only need to file it again if the value has increased by more than €20,000 since the last declaration, or if a relevant circumstance has occurred (change of ownership, disposal of the asset, new account, and so on). It is worth reviewing each category independently, since the changes may affect one and not the others.
Do crypto-assets fall under Form 720?+
Crypto-assets held by third parties abroad can fall within the reporting obligation, in line with the ongoing regulatory developments that have gradually brought these assets into the informational returns covering foreign wealth. Since this is an area of constant regulatory change, it is worth reviewing each taxpayer’s specific situation rather than assuming a digital asset is, or is not, covered by Form 720.
Does Form 720 mean paying more tax?+
Not directly. Form 720 is an informational return; it does not settle any tax by itself. Its purpose is to give the Tax Agency visibility of certain assets held abroad. The economic impact only appears if the assets are not declared correctly and are later regularised as an unjustified capital gain, or if a surcharge applies for late filing.
What documentation do I need to file Form 720?+
In general, you will need statements or certificates from foreign financial institutions showing balances as of 31 December, documentation for securities and investments (funds, shares, insurance with a surrender value), and deeds or evidence of the acquisition value of any property. The more complete and organised this documentation is, the easier it becomes to value each category correctly and avoid errors that could trigger later requests from the tax authority.
Can I correct Form 720 if I already filed it with errors?+
Yes, it is possible to file a supplementary or substitute return to correct errors or omissions in a Form 720 already filed. The sooner an error is detected and corrected, the lower the risk that the tax authority identifies it first and applies the corresponding regularisation regime. If you spot an inaccuracy in a declaration from previous years, it is worth reviewing it with an international tax advisor before deciding how to proceed.
