Join Talk Quesada
Welcome to Talk Quesada! My name's Alex and this is my website all about Ciudad Quesada in Spain. Talk Quesada is free to sign up and use so register below!
720 tax declaration.
Re: 720 tax declaration.
by Darro » Fri Mar 08, 2024 8:55 am
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.
That holds even if the total drops below the €50k threshold.
- Darro
- Posts: 1346
- Joined: Tue Sep 21, 2021 12:51 pm
- Which part of Spain are you from?: Catral
- Gender: Male
Re: 720 tax declaration.
by Paul Uden » Fri Mar 08, 2024 9:16 am
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.
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 - Posts: 1576
- Joined: Sat Feb 01, 2014 12:09 am
- Location: Rojales
- Which part of Spain are you from?: Ciudad Quesada
- Gender: Male
Re: 720 tax declaration.
by Brewingdog » Fri Mar 08, 2024 9:26 am
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
- Posts: 480
- Joined: Sat Oct 12, 2019 4:58 pm
- Which part of Spain are you from?: Salford
- Gender: Male
Re: 720 tax declaration.
by Paul Uden » Fri Mar 08, 2024 9:32 am
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.
-
Paul Uden - Posts: 1576
- Joined: Sat Feb 01, 2014 12:09 am
- Location: Rojales
- Which part of Spain are you from?: Ciudad Quesada
- Gender: Male
Re: 720 tax declaration.
by Brewingdog » Fri Mar 08, 2024 9:36 am
Gonna be interesting to see how it all pans out as my pension payments have already been taxed in the UK.
- Brewingdog
- Posts: 480
- Joined: Sat Oct 12, 2019 4:58 pm
- Which part of Spain are you from?: Salford
- Gender: Male
Re: 720 tax declaration.
by Paul M » Fri Mar 08, 2024 9:44 am
Also be interesting to see if when we add our previously omitted (nominal balance) accounts will trigger a fine. I’ll let you know.
- Paul M
- Posts: 1547
- Joined: Wed Feb 21, 2018 4:31 pm
- Which part of Spain are you from?: Pueblo Bravo
- Gender: Male
Re: 720 tax declaration.
by Paul Uden » Fri Mar 08, 2024 9:48 am
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 Uden - Posts: 1576
- Joined: Sat Feb 01, 2014 12:09 am
- Location: Rojales
- Which part of Spain are you from?: Ciudad Quesada
- Gender: Male
Re: 720 tax declaration.
by Paul Uden » Fri Mar 08, 2024 9:49 am
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).
-
Paul Uden - Posts: 1576
- Joined: Sat Feb 01, 2014 12:09 am
- Location: Rojales
- Which part of Spain are you from?: Ciudad Quesada
- Gender: Male
Re: 720 tax declaration.
by karen jones123 » Fri Mar 08, 2024 10:04 am
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.
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
- Posts: 120
- Joined: Fri Oct 17, 2014 9:16 pm
- Which part of Spain are you from?: la siesta
- Gender: Female
Re: 720 tax declaration.
by Paul Uden » Fri Mar 08, 2024 10:07 am
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.
-
Paul Uden - Posts: 1576
- Joined: Sat Feb 01, 2014 12:09 am
- Location: Rojales
- Which part of Spain are you from?: Ciudad Quesada
- Gender: Male
Page 2 of 3 • 1, 2, 3
26 posts
• Page 2 of 3 • 1, 2, 3
Related topics
-
- Similar Topics
- Replies
- Views
- Last post
-
-
Renta Declaration 2023
by VMW » Sat Apr 20, 2024 11:02 am in Quesada general discussion - 8
- 463
-
by Espanabums
Mon Apr 22, 2024 11:42 am
-
Renta Declaration 2023
Return to Quesada general discussion
Who is online
Users browsing this forum: ADmantX [Bot], Bing [Bot] and 139 guests
Login
Find in Quesada
Quesada pages
Quesada discussion
- Quesada general discussion
- Banking and finances
- Broadband, Wifi, Phone and TV
- Buses and public transport in and around Quesada
- Driving to Spain / Car hire in Spain / Buying and owning a car in Spain
- Fiestas in Quesada
- Flights, baggage and airports
- Health services in Quesada
- Insurances and wills in Spain
- Items for sale and wanted in and around Quesada
- Interesting articles about Spain
- Jobs and careers in Quesada
- Lost and found in Quesada
- Market days
- Places to go for free Wi-Fi
- Recommended restaurants / cafes / bars
- Recommended Tradesmen and Companies
- Residency in Spain: padron, residencia and passport advice
- Safety / security information and property in Spain hints and tips
- Taxes in Spain: Suma, NIE and general tax advice
- Taxis in Quesada
- Things to do and places to go in and around Quesada
- Utilities in Spain: Electric, gas and water recommendations and advice
- Weather in Quesada
- Where to buy things in and around Quesada
- Where to hire things in and around Quesada
Properties discussion
Businesses and places in Quesada
- Bars and pubs in Quesada
- Beaches near Quesada
- Beauticians / Beauty salons in Quesada
- Bedding and soft furnishings shops in Quesada
- Butchers in Quesada
- Car dealers in Quesada: new and used car dealers
- Car garages, mechanics, tyre fitter centres in Quesada
- Car hire in Quesada
- DIY / Bricolage / Ferreteria stores in Quesada
- Equipment hire centers in Quesada
- Estate agents in Quesada
- Furniture shops in Quesada
- Garden centres and garden furniture shops in Quesada
- Golf Courses in Quesada
- Grills / gates / metal items shops in Quesada
- Hairdressers in Quesada
- Hotels, guest houses and bed and breakfasts in Quesada and nearby
- Internet service providers that cover Quesada
- Launderettes / dry cleaners in Quesada
- Markets in Quesada
- Medical / Health centers in Quesada
- Pet shops in Quesada
- Pharmacies / Chemist shops in Quesada
- Restaurants in Quesada
- Shopping centres in Quesada
- Sports centres and gyms in Quesada
- Supermarkets in Quesada
- Swimming pool services in Quesada
- Town Halls (Ayuntamientos) in Quesada
- Waterparks/Aquaparks in Quesada
- TalkQuesada » Board index
- The team • Delete all board cookies • All times are UTC [ DST ]
- Our other websites:
- Costa Blanca forum
- Costa Calida forum
- Costa del Sol forum
- Costa de Almeria forum
- Costa de la Luz forum
- Costa Dorada forum
- Costa Brava forum
- UK forum
- Jobs in the UK
- Our policies:
- Privacy policy
- User agreement
- Content policy
- Website created and operated by JSM Forum Websites