Anyone know if you have to declare private company pension funds in the modelo 720 form?

Posted: Mon Mar 14, 2022 9:53pm

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My assesor fiscal is not clear about whether I need to declare my private company pension fund in the 720 form. It seems that the confusion comes from three facts:

- "Planes de pensiones" do not need to be declared in the 720 form

- As far as Hacienda is concerned the legal definition of a "plan de pension" refers to "derechos de las personas, a cuyo favor se constituyen a percibir rentas o capitales por jubilación, supervivencia, viudedad, orfandad o invalidez."

- In the UK, you can start taking benefits from a private pension plan from the age of 55 years, before you actually retire, so this may not be considered a "plan de pension" under the strict definition

Does anyone have experience with this?

Thanks

Andrew

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Posted: Mon Mar 14, 2022 10:35pm

tebo53

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Posted: Mon Mar 14, 2022 10:35pm

AndrewM wrote on Mon Mar 14, 2022 9:53pm:
My assesor fiscal is not clear about whether I need to declare my private company pension fund in the 720 form. It seems that the confusion comes from three facts:
- "Planes de pensiones" do not need to be declared in the 720 form

Read more...

- As far as Hacienda is concerned the legal definition of a "plan de pension" refers to "derechos de las personas, a cuyo favor se constituyen a percibir rentas o capitales por jubilación, supervivencia, viudedad, orfandad o invalidez."
- In the UK, you can start taking benefits from a private pension plan from the age of 55 years, before you actually retire, so this may not be considered a "plan de pension" under the strict definition
Does anyone have experience with this?
Thanks
Andrew

I had to include my private company pension on the modelo 720 and all other worldwide income.

Steve

Posted: Tue Mar 15, 2022 10:57am

Stevec2x

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Posted: Tue Mar 15, 2022 10:57am

Hi

For what it's worth, I was advised not to declare my personal (not company) pension on Modelo 720.

Cheers

Steve

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Posted: Tue Mar 15, 2022 11:00am

tebo53

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Posted: Tue Mar 15, 2022 11:00am

Stevec2x wrote on Tue Mar 15, 2022 10:57am:
Hi
For what it's worth, I was advised not to declare my personal (not company) pension on Modelo 720.

Read more...

Cheers
Steve

You could be fined very heavily for failing to declare income.......

I certainly would consult a different Gestor!!

Steve

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Posted: Tue Mar 15, 2022 11:33am

Stevec2x

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Posted: Tue Mar 15, 2022 11:33am

tebo53 wrote on Tue Mar 15, 2022 11:00am:
You could be fined very heavily for failing to declare income.......
I certainly would consult a different Gestor!!

Read more...

Steve

Hi Steve

It's the fund that I was told not to declare, not the monthly income.

Cheers

Steve

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Posted: Tue Mar 15, 2022 11:43am

AndrewM

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Posted: Tue Mar 15, 2022 11:43am

Thanks for the replies.

I think I'd rather play it safe and declare it. As far as I can tell, at this stage declaring it doesn't mean anything other than notifiying Hacienda of its existence ...which they would find out about as soon as I started to receive and declare any benefits I get from it anyway in the future, assuming I am still in Spain.

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Posted: Tue Mar 15, 2022 4:03pm

Darro

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Posted: Tue Mar 15, 2022 4:03pm

Foreign assets in excess of €50k must be declared on the Modelo 720.

AFAIK the only time an asset need not be declared is if it cannot be drawn on.

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Posted: Tue Mar 15, 2022 5:16pm

Kimmy11

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Posted: Tue Mar 15, 2022 5:16pm

Hi Andrew,

The important distinction you've made is that your pension is a "company" scheme, rather than a self-invested private pension, i.e. both you and your employer made contributions to your pension? My tax advisors, Abaco, told me that they don't have company pensions in Spain, so Agencia Tributaria hasn't worked out what to do about them. For this reason, they advised me that I didn't have to declare the fund on the Modelo 720, but as and when I take income from it, I will have to declare it on my annual Modelo 100 tax return. Every year, I reconfirm with Abaco that this position hasn't changed - in case the AEAT does decide what to do about them! - but nothing has changed in 6 years.

I took the 25% tax-free lump sum from each of my company pensions and did so before I became resident in Spain, as this tax-free element does not apply in Spain. One of my company pensions could not remain in the scheme once in drawdown, so I moved it to the Prudential. However, Abaco were satisfied that I could provide an audit trail of when I first started contributing to the scheme (1983!), in order to prove that the source of the funds in Prudential came from a company scheme.

Kind regards,

Kim