Legal Requirements & Documentation
Declaring assets abroad in 2026: Modelo 720 explained
Modelo 720 explained for Spanish residents: the €50,000 thresholds, the January–March deadline, the €20,000 rule, crypto on Modelo 721 and penalties today.
Updated: October 2026
Once you become tax resident in Spain, you may have to tell the Spanish Tax Agency about bank accounts, investments and property you still hold in your home country. This is done on Modelo 720, an information return that worries many newcomers because of its once-notorious fines. This guide explains who has to file, the thresholds, the deadline and what has changed since the penalty regime was struck down.
What Modelo 720 is (and what it is not)
Modelo 720 is a declaración informativa: you report what you own abroad, but you pay no tax with it. The income those assets produce (interest, dividends, rent, gains) is declared separately on your annual income tax return, as for any Spanish resident taxed on worldwide income. If you are unsure about that side, start with our overview of the Spanish tax system.
The form is filed online through the Agencia Tributaria’s electronic office, using a digital certificate, Cl@ve or similar. Many residents ask a gestor or tax adviser to prepare it the first time.
Who has to file
The obligation applies to Spanish tax residents, including individuals and companies. Non-residents who only own a holiday home in Spain do not file it. You are usually tax resident if you spend more than 183 days a year in Spain or your main economic interests are here.
You must report not only assets you own outright, but also accounts on which you are an authorised signatory, a beneficiary or the beneficial owner. If an asset is jointly owned, each resident co-owner reports it: for bank accounts you give the full balance, not split, together with your ownership percentage.
One notable exception: people taxed under the special regime for new residents (the Beckham law) do not have to file, according to the Tax Agency’s own FAQ. Family members who are not on that regime are not covered by the exception.
The three blocks and the €50,000 thresholds
Assets abroad are split into three blocks. You only have to file for a block when its combined value is more than €50,000.
| Block | What it covers | Value used |
|---|---|---|
| 1. Accounts | Current and savings accounts, deposits held at banks abroad | Balance on 31 December or the average balance of the last quarter, whichever is higher |
| 2. Securities, insurance and annuities | Shares, bonds, investment funds, life insurance and annuities held with foreign entities | Mainly the value on 31 December (for funds, the net asset value) |
| 3. Real estate | Property abroad and rights over it, such as a share in a house | Generally the purchase value |
Each block is measured on its own. A person with €60,000 in a foreign savings account and €30,000 in foreign shares only reports the accounts block. Amounts in other currencies are converted at the exchange rate on 31 December.
Deadline and later years
Modelo 720 is filed between 1 January and 31 March for the situation on 31 December of the previous year. Assets held at the end of 2025 were reported by 31 March 2026, and assets held at the end of 2026 must be reported between 1 January and 31 March 2027.
You do not have to file every year. After your first Modelo 720, you file again only if:
- the value of a block you already declared has risen by more than €20,000 compared with your last return, or
- a block crosses the €50,000 threshold for the first time, or
- you have closed, sold or stopped holding an asset you declared before (this must be reported even if values fell).
Crypto goes on Modelo 721
Cryptocurrencies held with providers abroad are not included in Modelo 720. Since the 2023 tax year they go on a separate return, Modelo 721, which also uses a €50,000 threshold and the same January–March filing window. Crypto held on a Spanish platform or in your own private wallet follows different rules, so check with an adviser.
Penalties after the 2022 EU ruling
Modelo 720 used to carry some of the harshest penalties in Europe: fixed fines per missing item, a 150% penalty and the rule that undeclared assets could be taxed as unjustified income with no time limit. On 27 January 2022, the Court of Justice of the European Union (case C-788/19) ruled that this system breached EU law because it was disproportionate.
Spain then passed Law 5/2022, which removed the special penalty regime. Since then, late or incorrect Modelo 720 returns fall under the general penalty rules of the Spanish tax code, which are much lower. That does not mean the form can be ignored: the Tax Agency receives a lot of data from foreign banks through automatic exchange of information, and penalties for missing information returns still apply.
If you realise you should have filed in earlier years, filing late on your own initiative, before the Tax Agency contacts you, usually leads to lower penalties. Our guide to tax audits and inspections explains what happens if they do.
Practical checklist for your first Modelo 720
- List every account, investment, insurance policy and property you hold abroad, including ones you are only authorised on.
- Ask each foreign bank or broker for a statement showing the 31 December balance and, for accounts, the fourth-quarter average.
- Find the purchase deeds or documents for any foreign property.
- Convert all amounts to euros at the 31 December exchange rate and add them up per block.
- If any block is over €50,000, file between 1 January and 31 March, and keep a copy of your return as the baseline for the €20,000 rule.
Useful links
- Agencia Tributaria: Form 720 (assets and rights abroad)
- Agencia Tributaria: Modelo 720 FAQ (PDF, Spanish)
- Garrigues: the law that removed the Modelo 720 penalty regime (Spanish)
- Taxes for foreign property owners in Spain
- Investment strategies for expats in Spain
FAQ: Modelo 720
Do I pay tax when I file Modelo 720?
No. It is only an information return. Income from the assets is declared and taxed on your normal income tax return.
My foreign pension is paid into a UK account. Do I need to file?
Only if the accounts block abroad is over €50,000 on 31 December or on the fourth-quarter average. The pension income itself goes on your income tax return.
Do I need to file every year?
No. After the first return, you file again only if a block rises by more than €20,000, a new block passes €50,000, or you close or sell something you declared.
Are the old huge fines still possible?
No. Since Law 5/2022, the general tax penalty rules apply instead. Penalties still exist, so it pays to file correctly and on time.
Disclaimer: This article is general information only and is not legal or tax advice. Reporting rules and thresholds can change – always check with the Agencia Tributaria and ask a gestor, tax adviser or lawyer about your own situation.
