Form 720 – declaration of assets and rights located abroad – is a tax obligation of an informative nature, the purpose of which is to declare information on assets and rights of economic content located or managed abroad, Individuals or entities resident in Spain are obliged to file this tax return.

Consequences of the non-filing of Form 720

Until 27 January 2022, the date of the judgment of the Court of Justice of the European Union (CJEU) on Model 720, failure to file, late filing or inaccuracies in the data provided could be very serious for those obliged to file.

The CJEU ruled that the penalties were disproportionate. The Ministry of Finance and Public Administration has already informed that the regulations governing Form 720 will be amended, in line with the ruling of the CJEU in terms of the limitation period and the proportionality of the penalties.

This ruling is an opportunity for taxpayers to regularize their tax situation, as the severe penalty regime no longer applies.

Is it possible to claim the fines of Form 720?

The procedure for making a claim will depend on the situation of each taxpayer:

  • For ongoing appeals, the officials or Court that is reviewing your case must automatically apply the ruling of the Court of Justice of the European Union and rule in your favor, agreeing to refund the amounts unduly collected, and the corresponding interest for late payment
  • If the appeal has not been lodged but the sanction is within the time limit for appeal, it must be done through the ordinary channels. The taxpayer must lodge an administrative appeal or economic appeal with the tax office to claim the money
  • In the case of final penalties, the taxpayer will have to resort to a procedure for claiming financial liability from the Administration, which is not a tax procedure and for which there is a period of one year.

Consult our tax experts for the filing of the 720 tax form for 2021 or the regularizations of previous years.

Roberto Cerrato

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