Automatic Exchange of Information and the Modelo 720

Many people who have moved to Spain and have kept assets in the UK must declare their overseas assets each year by 31st March for the previous year date ending 31st December.

There are 3 categories:

Cash, Investments and Property.

If the value of the overseas asset in either category is above €50,000 then a declaration via the Modelo 720 should be completed.  There are fines imposed if there is a failure to complete.

If you have not yet completed the Modelo 720 when perhaps you think you should have done, you may have thought ‘the Spanish authorities will never find out about my assets’.

To a degree it is true where the Spanish authorities have been under a bit of pressure with the new tidal wave of information being received and processing this in the correct way and they have been somewhat dependant on individuals coming forward with information.  Last year this changed following the global automatic exchange of information regime.  Just over half of the countries involved are reporting to Spain this year and gathering of data is completed by 101 countries, so now information is ready to be exchanged.

What this means is, if you have an ISA with a UK Bank for example in the UK with a value over €50,000, the Spanish authorities will be informed automatically.  If you have accounts in the Isle of Man or Switzerland where there previously was some form of anonymity, details of these will also be sent to the Spanish authorities automatically.

The best thing anyone can do is seek some Financial Advice now.  If investments are held, there are products available that have the Spanish stamp of authority (like Spanish Compliant Bonds), then these assets do not have to be declared on the Modelo 720, just like Spanish bank accounts.  If you are new to Spain and have no idea what to do, then take Financial Advice as you may be able to reposition your investments to avoid having to complete the Modelo 720 in the future and avoid the heavy fines.

In today’s financial climate it is essential you do everything you can to make sure your money is safe and secure and what you want to transpire in the future has the best chance of happening.

Blacktower Office

120 Avenida Dr Artero Guirao 2C

San Pedro Del Pinatar

30740, Murcia

Our office suite is easy to find on the main N332 through-road of San Pedro del Pinatar with easy parking.

If you want more information or wish to make an appointment to discuss your own situation then call 657 684 094 or email keith.littlewood@blacktowerfm.com

Blacktower Financial Management (International) Limited is licensed by the Gibraltar Financial Services Commission. Licence 00805B. Blacktower Financial Management Limited is authorised and regulated by the Financial Conduct Authority in the UK and is registered with both the DGS and CNMV in Spain.