50,000 pounds

This may be of some help, I aren’t a resident of Spain but I do believe that you do need to declare all of your worldwide assets on the modelo 720 form, perhaps seek professional advice

https://taxadora.com/modelo-720-declaring-foreign-assets/?gclid=CjwKCAiA5Y6eBhAbEiwA_2ZWIfxrFUHhtq6d74o-1RFLiF9XjmMD5mICsto-abDK9wtRPHViYk2h3BoCpgEQAvD_BwE

So if you’re resident in Spain (more than 180 days) then I guess you need a visa anyhow and fall under Spanish taxation rules. Any UK resident who is not resident needs to abide by the 90/180 Schengen rules anyhow, so wouldn’t fall under this obligation.

Hi rds,

If you're tax resident in Spain, i.e. live here for 183 days (6 months + 1 day) or more, then you need to comply with Spain's tax rules.  If you have assets outside of Spain in excess of €50,000 in any of 3 asset classes - banks/savings accounts, property, and investments - you must declare them on the Modelo 720 Declaration of (worldwide) Assets.  You are not taxed on the asset itself, only the income you derive from it.  For example, if you had savings equivalent to €50,000 in an overseas account and earned interest on it of, say, €1,000, you would declare the interest sum on your Modelo 100 annual tax return for that year and pay tax on the interest, not the capital sum itself.  It's also worth remembering that the Modelo 720 determines at what level you will be taxed.

Kind regards,

Kim

Is it also compulsory to fill in a modelo 720 form annually or at least when you get residency?

Hi Kim

What does your last sentence mean? The level at which you are taxed depends only on your income, income sources, your age (for allowances) and where in Spain you live, because there is an autonomous community element in the tax, and rates vary slightly between communities.

I'm not sure what Modelo 720 has to do with any of that, apart from informing the tax man about your assets which may or may not generate income.

Hi Lefty,

Only if you have the equivalent of at least €50,000 outside of Spain in one of the 3 asset classes I listed.

Kind regards,

Kim

Hi HJ,

The post is about the Modelo 720 and, as I've said, you are not taxed on the assets you declare on the 720, but the income you derive from them.  (Of course, income generated within Spain has to be declared on the Modelo 100 annual tax return, subject to certain minima.)  However, the 720 declaration affects the level at which you're taxed - I'm taxed at 19%, but because of my husband's military pension, even though it's taxed in the UK, he pays a higher rate of tax in Spain.

Kind regards, 

Kim

Hi Kim

OK, I understand now, you're talking about crown pensions received from the UK and how they affect your taxbands in Spain even though you are not taxed directly on that income here.

To answer the OP's point more fully on how frequently you do the M720, and this will be important to many people - once you've done it for the first time, you don't need to do it again until any of the asset classes you've declared grows by over €20,000 euros. Or unless you're going to declare having 50,00€ in an asset class you haven't declared before.

As an example, say you declare on your first form that you have 60,000€ worth of shares in the UK. You don't have to do another one in following years unless or until your share pot grows to 80,000€ or more, provided nothing has changed in the other asset classes.

Incorrect information, only if you have assets of more than £50,000 worldwide