Accounts held abroad
Current, savings and other accounts at foreign banks. Reportable once the year-end balance or the average balance of the final quarter together exceeds €50,000.
Tax topic · reporting obligation
Modelo 720: reporting foreign assets — not the same as wealth tax
Anyone tax-resident in Spain who holds substantial assets abroad has to report them annually, whether or not any tax is due on them. The obligation is frequently confused with wealth tax, but it is a self-standing reporting duty carrying no tax payment of its own.
In short
Is the Modelo 720 the same as wealth tax?
No — a reporting duty with no tax of its own, on assets held abroad. Wealth tax is a separate tax on assets located in Spain; the two are independent.
Who has to file it?
People tax-resident in Spain with assets abroad above the thresholds. Pure non-residents who only own a property in Spain are not affected — for them wealth tax may apply instead.
What if I file late or incorrectly?
Since Ley 5/2022 the general LGT penalty regime applies (arts. 198/199) — no longer the flat penalties up to 150% the CJEU struck down in 2022 (C-788/19).
Do I have to report foreign assets to the Spanish tax office (Modelo 720)?
Only if you are a Spanish tax resident — non-residents with just a property in Spain are not affected. If you are tax-resident in Spain and hold foreign assets above 50,000 euros in any of three separate categories (bank accounts, securities/insurance/pensions, or real estate), you must file the Modelo 720 informative return between 1 January and 31 March each year. It is a reporting obligation only, not a tax itself, and is often confused with Spain's wealth tax, which is a separate charge on assets located in Spain. Once filed, you only need to refile a category if its value grows by more than 20,000 euros compared to your last declaration. People under Spain's special regime for inbound assignees (Article 93 LIRPF) are exempt, since they are not taxed on worldwide income — an exemption that does not automatically extend to a spouse or children who are themselves Spanish tax residents. Since March 2022, penalties for late filing follow the general tax-penalty regime rather than the earlier fixed fines the European Court of Justice found disproportionate.
The distinction
Modelo 720 is not a tax — it is a report
Wealth tax (Impuesto sobre el Patrimonio) is often mistaken for the Modelo 720, but they are different obligations. The Modelo 720 is a pure reporting duty for assets held abroad — accounts, property, securities — above defined thresholds. It affects people who are tax-resident in Spain and hold assets outside Spain; it does not affect non-residents who own a property in Spain, for whom wealth tax is the relevant charge instead. See wealth tax in Spain.
The three categoriesCategory 1 Category 2 Category 3
What has to be reported — from €50,000 per category
Securities, insurance, pensions
Shares, funds, life policies with a surrender value and pension rights held abroad — reportable together from €50,000.
Property held abroad
Real estate and rights over real estate outside Spain, again reportable from €50,000. The three categories are assessed separately — one may be reportable while the others are not.
Deadline and repeat filing
1 January to 31 March — and only again when something moves
The return is filed between 1 January and 31 March for the preceding calendar year. Once a category has been declared it does not have to be declared again every year: a further filing is due when the value of that category has grown by more than €20,000 against the last declaration, or when an asset in it has been disposed of.
This is not tax advice. The thresholds and the deadline are as of July 2026; the filing itself belongs with a Spanish gestor or tax adviser.
Why it matters for a purchase
The obligation follows residency, not the property
For most buyers on this site the answer is simply that the Modelo 720 does not apply: buying a Spanish property as a non-resident triggers no reporting duty. It becomes relevant at the moment residency changes — someone who moves to Spain permanently and keeps accounts, securities or property at home moves into scope from that year on. Anyone planning that step is better served settling it before the move than in the March after it.
FAQ
Frequently asked questions about the Modelo 720
Is the Modelo 720 the same as wealth tax?
No. The Modelo 720 is a reporting obligation with no tax payment of its own — it informs the Agencia Tributaria about assets held outside Spain. Wealth tax (Impuesto sobre el Patrimonio) is a separate tax on assets located in Spain. The two obligations are independent and affect different groups of people.
Who has to file the Modelo 720?
People who are tax-resident in Spain, and therefore taxed on worldwide income under IRPF, holding assets abroad above the thresholds. Pure non-residents who merely own a property in Spain are not affected — for them wealth tax on Spanish assets may apply instead.
I am under the special regime for inbound workers (art. 93 LIRPF). Do I still have to report?
No. According to the Agencia Tributaria, people falling under that special regime are exempt from the Modelo 720 obligation because they are not taxed on worldwide income. That does not automatically extend to spouses and children, who may be independently obliged to report if they are themselves tax-resident in Spain.
What happens if I file late or incorrectly?
Since Ley 5/2022 of 9 March 2022 the general penalty regime of the Ley General Tributaria applies (arts. 198/199 LGT) — no longer the earlier flat penalties of up to 150 % of the unreported value, which the Court of Justice of the EU held disproportionate on 27 January 2022 (case C-788/19).
Do I have to file again every year?
Only if something has moved. Once a category has been declared, it has to be declared again when its value grows by more than €20,000 against the last declaration — or when an asset in that category is disposed of.
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