720 tax declaration.

Unfortunately once you've done one 720 if you buy or sell any of the assets you've declared, even in part, then you'll be locked into doing one each and every year.

That holds even if the total drops below the €50k threshold.

One tip. Don't close any bank accounts because you have to resubmit the Modelo 720 (with the accompanying fees to your accountant), unless you know you will have to resubmit for other reasons anyway. I have several accounts that now just have £1 in them for this reason. I will close them if/when I sell a property or something significant.

As for all the other misunderstandings and confusions in the comments on here, you are paying an accountant / gestor / lawyer who will answer them all for you.

Modelo 720 is a declaration of overseas assets (property, investments and bank accounts) and has almost nothing to do with income tax. There is a connection in that assets normally generate an income in the form of capital gains, rent receipts, interest, dividends etc, but these and your other incomes (pensions etc) are declared and taxed on your annual income tax return, Modelo 100.

Paul Uden wrote:One tip. Don't close any bank accounts because you have to resubmit the Modelo 720 (with the accompanying fees to your accountant) unless you know you will have to resubmit for other reasons anyway. I have several accounts that now just have £1 in them for this reason. I will close them if/when I sell a property or something significant.

As for all the other misunderstandings and confusions in the comments on here, you are paying an accountant / gestor / lawyer who will answer them all for you.

Modelo 720 is a declaration of overseas assets (property, investments and bank accounts) and has almost nothing to do with income tax. There is a connection in that assets normally generate an income in the form of capital gains, rent receipts, interest, dividends etc, but these and your other incomes (pensions etc) are declared and taxed on your annual income tax return, Modelo 100.

So basically any accounts I have in the UK be they savings, current or premium bonds are subject to Spanish tax on the interest only if they don't total over 700 thousand. I have no UK property. Just a company pension.

Brewingdog wrote:

Paul Uden wrote:One tip. Don't close any bank accounts because you have to resubmit the Modelo 720 (with the accompanying fees to your accountant) unless you know you will have to resubmit for other reasons anyway. I have several accounts that now just have £1 in them for this reason. I will close them if/when I sell a property or something significant.

As for all the other misunderstandings and confusions in the comments on here, you are paying an accountant / gestor / lawyer who will answer them all for you.

Modelo 720 is a declaration of overseas assets (property, investments and bank accounts) and has almost nothing to do with income tax. There is a connection in that assets normally generate an income in the form of capital gains, rent receipts, interest, dividends etc, but these and your other incomes (pensions etc) are declared and taxed on your annual income tax return, Modelo 100.

So basically any accounts I have in the UK be they savings, current or premium bonds are subject to Spanish tax on the interest only if they don't total over 700 thousand. I have no UK property. Just a company pension.

All your worldwide income is taxed in the country where you are resident. If you have premium bonds then your winnings are taxed here yes, but for Modelo 720 purposes they fall into the 'investments' category not bank accounts. Interest on other current and savings accounts is taxed along with your pension as that also forms part of your worldwide income.

Gonna be interesting to see how it all pans out as my pension payments have already been taxed in the UK.

Also be interesting to see if when we add our previously omitted (nominal balance) accounts will trigger a fine. I’ll let you know.

Brewingdog wrote:Gonna be interesting to see how it all pans out as my pension payments have already been taxed in the UK.

You will have to reclaim it from HMRC if you are unable to prevent it being deducted at source. My wife is going through the process at the moment and HMRC are a nightmare to deal with. Ask your accountant for the necessary forms as you will need to obtain a certificate from Spain to confirm you pay your tax here.

Paul M wrote:Also be interesting to see if when we add our previously omitted (nominal balance) accounts will trigger a fine. I’ll let you know.

I would have thought the advice will be to close them and not bother redeclaring (if they've never been mentioned before that is).

Correct me if I am wrong.
So I believe if you pension income is less than 22.000 euro you don't need to submit a tax declaration every year.
If you have 55.000 euro or more in bank accounts in England you submit a tax form and will be taxed on the interest which is pretty poor anyway.

karen jones123 wrote:Correct me if I am wrong.
So I believe if you pension income is less than 22.000 euro you don't need to submit a tax declaration every year.
If you have 55.000 euro or more in bank accounts in England you submit a tax form and will be taxed on the interest which is pretty poor anyway.

I am sure you are wrong on both counts, but ask your accountant for the correct information. It's getting too complicated for here.