Modelo 720: foreign assets declaration in Spain (2026 guide)
€50,000 reporting threshold per asset category Annual filing deadline: March 31
Modelo 720 is Spain’s foreign assets declaration for Spanish tax residents with assets held outside Spain. It does not create a tax bill, but incorrect or missed filings can cause serious compliance issues.
At Baleario, we prepare and file Modelo 720 on your behalf, ensuring assets are correctly classified, valued, and submitted in line with current rules.
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How Baleario helps with Modelo 720 compliance
At Baleario, we do not treat Modelo 720 as a standalone form or a box-ticking exercise.
We prepare, review, and file Modelo 720 as part of wider residency and asset planning, helping clients avoid errors that can cause long-term problems with the Spanish tax authorities.
We help by:
- Confirming whether Modelo 720 applies in your case
- Reviewing foreign assets and correct categorisation
- Advising on valuation methods and ECB exchange rates
- Coordinating Modelo 720 with income tax and wealth tax filings
- Avoiding unnecessary or incorrect declarations
- Supporting first-year residents through initial compliance
- Managing late filings and penalty mitigation
- Advising on Beckham Law eligibility and Modelo 720 exemptions
In many cases, the most important work happens before the first filing deadline, particularly for new Spanish tax residents.
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Modelo 720 pricing (transparent and fixed)
Our pricing is based on the number of reportable entries across all asset categories.
Fees depend on complexity, asset types, and whether prior filings or corrections are required. We confirm pricing before starting.
What is Modelo 720?
Modelo 720 is an informative foreign assets declaration required by the Spanish tax authority (Agencia Tributaria).
Its purpose is to disclose the existence of certain overseas assets held outside Spain by Spanish tax residents.
Key points:
- It is not an income tax return
- It does not calculate or generate a tax payment
- It gives the tax authority visibility over foreign assets
- Once filed correctly, it usually only needs to be re-filed if values change significantly or new assets are added
In practice, Modelo 720 combines foreign bank accounts, overseas investments, and foreign property into a single declaration.
Who must file Modelo 720?
You are generally required to file Modelo 720 if:
- You are Spanish tax resident
- You hold assets outside Spain
- The value of assets exceeds €50,000 in any category
This commonly affects:
- Expats in their first year of Spanish tax residency
- Long-term residents with overseas investments
- Individuals with foreign bank accounts, pensions, or property
Non-residents do not file Modelo 720.
People under the Beckham Law are usually excluded while the regime applies.
What assets must be declared under Modelo 720?
Our pricing is based on the number of reportable entries across all asset categories.
Foreign bank accounts
Includes current, savings, and deposit accounts held outside Spain, joint accounts, authorised signatory accounts, and digital banks such as Revolut, Wise, and N26.
Foreign investments and financial assets
Includes shares, ETFs, funds, bonds, life insurance with investment components, and pension-type products held abroad such as UK SIPPs or US retirement accounts.
Foreign property and real estate
Includes property located outside Spain and rights over property such as ownership or usufruct.
If the total value in a category exceeds €50,000, all assets in that category must be declared, not just the excess.
Worked example: first-year resident
A UK national becomes Spanish tax resident in June 2025.
On December 31, 2025 they hold:
- €18,000 across UK bank accounts
- €62,000 in a UK investment portfolio
- A UK pension worth €140,000
Result:
- Modelo 720 must be filed by March 31, 2026
- All foreign investments must be declared
- Bank accounts do not need to be declared if below threshold
This first filing is the most important one. Errors here are the most common cause of future audits.
When must Modelo 720 be filed?
- Filing period: January 1 – March 31
- Values reported as of December 31 of the previous year
You file:
- The first time you exceed €50,000 in any category
- Again if values increase by more than €20,000
- When new assets are added to a declared category
If nothing changes, it often does not need to be re-filed every year.
What happens if you do not file?
A missed or incorrect Modelo 720 filing can result in fines starting at €1,500, even where no tax is actually owed.
Although penalties have been reduced following EU rulings, non-compliance can still lead to:
- Significant fines
- Tax audits and investigations
- Presumptions of undeclared income
- Problems selling assets or moving funds later
Most issues arise from missed deadlines, incorrect valuations, or misclassification.
Unsure if Modelo 720 applies to you?
Many expats only discover this obligation after becoming tax resident, when deadlines are already running.
We help you confirm whether Modelo 720 applies, prepare the declaration correctly, and file it on time.
Modelo 720 vs Wealth Tax (Spain): what’s the difference?
Many expats confuse Modelo 720 with wealth tax. They are related, but they do very different things.
At a glance
Topic | Modelo 720 | Wealth Tax |
What it is | Informative declaration | Annual tax |
Creates a tax bill | No | Yes |
Who it applies to | Spanish tax residents | Spanish tax residents (with regional variation) |
What it reports | Foreign assets | Net wealth (Spanish and sometimes foreign) |
Threshold | €50,000 per asset category | Varies by region and personal allowance |
Filing deadline | March 31 | Usually June |
Penalties | Compliance and audit risk | Interest, surcharges, penalties |
How they interact in practice
- Modelo 720 reports foreign assets, but does not tax them
- Wealth tax may tax those same assets, depending on residency, region, and structure
- Inconsistencies between Modelo 720, income tax, and wealth tax filings are a common trigger for audits
Filing Modelo 720 correctly does not mean you owe wealth tax, but filing it incorrectly can create future problems when wealth tax or income tax is reviewed.
This is why Baleario prepares Modelo 720 alongside income tax and wealth tax, not in isolation.
Country-specific guidance for expats
These expandable sections answer the most common “does this count?” questions we see.
UK expats in Spain
UK residents who become Spanish tax resident commonly need to declare:
- UK bank accounts (HSBC, Barclays, NatWest, etc.)
- ISAs (Stocks & Shares ISAs included)
- UK SIPPs and workplace pensions
- UK investment portfolios
- UK property (rental or personal use)
Common mistake:
Assuming ISAs are tax-free in Spain. They are not. ISA holdings must be declared on Modelo 720 if thresholds are exceeded.
US expats in Spain
US citizens often need to declare:
- US bank accounts
- 401(k), IRA, and Roth IRA accounts
- US brokerage accounts (Vanguard, Fidelity, Schwab)
- US real estate
- US Treasury bonds
Common mistake:
Assuming US retirement accounts are excluded. Most are reportable for Modelo 720 purposes, even if taxed differently in the US.
EU / international expats
EU nationals and other international residents may need to declare:
- Bank accounts in home country
- EU investment platforms and funds
- Life insurance and savings products
- Overseas pensions
- Property outside Spain
Common mistake:
Assuming EU assets are treated differently. They are not. Modelo 720 applies equally to EU and non-EU assets.
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FAQs: Modelo 720 and foreign assets in Spain
Is Modelo 720 a tax?
No. It is a declaration only. It does not generate a payment, but incorrect or late filing can create serious compliance issues.
Do non-residents need to file Modelo 720?
No. Modelo 720 applies only to Spanish tax residents.
Do I need to declare foreign property even if it has no rental income?
Yes. Income generation is not required. Ownership alone can trigger reporting.
Do I file Modelo 720 every year?
Not necessarily. You generally re-file only if:
You exceed the threshold for the first time
Values increase by more than €20,000 in a category
New assets are added to a declared category
Does the Beckham Law remove Modelo 720 obligations?
Yes. While you are validly under the Beckham Law, Modelo 720 normally does not apply. Once the regime ends, the obligation can arise.
What exchange rate should I use?
The European Central Bank (ECB) reference rate as of December 31 of the reporting year.
What if I missed the deadline?
File as soon as possible. Voluntary late filing may reduce penalties. Professional advice is strongly recommended.
Can Baleario file Modelo 720 for me?
Yes. We prepare and file Modelo 720 on your behalf, coordinating it with income tax and wealth tax to avoid errors and future issues.
Last Updated: January 25, 2026
Disclaimer
This guide is for informational purposes only and does not constitute tax or legal advice. Spanish tax laws change regularly. Always consult with a qualified tax advisor for your specific situation.