Well, it depends, the Model 720 must be re–submitted only if:

• Any of the assets declared in the last Modelo 720 has been cancelled at any time in the year 2024.
• There is an increase in aggregate amount established for each block of information (bank accounts, investments and real state) greater than € 20,000 with respect to the one previously 720 filed on December 31^st

And what happens with the virtual currencies? (Model 721)

• Starting this year 2024, and after the approval of the anti-Fraud Measures Law in 2021, crypto currencies deposits abroad must be declared using the Model 721. Specifically, Model 721 is aimed at individuals who own cryptos and have a portfolio with a value on December 31^st of at least €50,000.

Just become fiscal resident in Spain in 2024, should I file the 720/721?

• If you have just become fiscal resident in Spain during 2024 and you have assets located abroad that exceed € 50,000 in any of the four blocks of information (bank accounts, investments, real state and crypto currency) and you are an individual or an entity, you have the obligation to file.

Is it important to declare?

• Yes, it is important that you do so in order to avoid penalties. Take in consideration that the assets declared in the 720/721 might have an influence in your Modelo 100, Income Tax Return, and in your Modelo 714, Wealth Tax, later on during the year and that there is an automatic exchange of fiscal information of the taxpayers among the European Tax Agencies and the IRS.

Modelo 720 and 721. Assets abroad.

The filing period for submitting Modelo 720 “informative declaration on assets and rights located abroad” for fiscal year 2024 is from January 1 to March 31, 2025. Modelo 721 for cryptos has the same filing period.

Taxpayers must report on the assets and rights they have abroad, (1) bank accounts in financial institutions, and (2) securities, rights, insurance, and income deposited, managed or obtained outside of Spain (3) and real estate. The obligation to declare any of these three blocks for the first time is excluded when the value of the block does not exceed €50,000.

For those who filed Modelo 720 in previous years, the presentation will only be mandatory when the corresponding block balance (bank accounts, investments or real estate) has experienced an increase of more than €20,000 compared to those that determined the presentation of the year’s declaration previously stated. In any case, the presentation of the report will be mandatory for those assets already declared and with respect to which the taxpayer loses the condition that determined the obligation to declare.

This model must be submitted electronically, without paper submission being possible

For more information call us +34 5194392 or use the following links.

http://www.ustaxconsultants.net/modelo720/  in English

http://www.ustaxconsultants.net/es/modelo720/ en español