The Spanish Tax Office has recently introduced a new tax form concerning fraud and money laundering.
This is the tax form no. 720 and it must to be completed by all tax residents in Spain. All below mentioned assets held as of the 31.12.2012 with a value of more than 50,000 Euros must be submitted on this form between March and April 2013.
- Accounts in foreign banks: Balance at 31st December 2012 and average balance in the last quarter.
- Properties and property rights owned in any other country.
- Shares, rights, life insurances and incomes deposited, handled or obtained abroad.
Tax evaders will incur a penalty of 5K for every asset not declared after the deadline with a minimum penalty of 10,000.
In addition, non declared assets might be considered by the Tax Office, as capital gains. This means that tax evaders would have to include it on the 2012 Income Tax Return, and it could be taxed up to 56% tax rate depending on the Province, plus an additional penalty up to 150% over the total taxable amount.
This is an extraordinary tax return, and it wont have to be completed again unless you subsequently acquire additional assets abroad with a value in excess of 20K.
Although this will apply to Spanish citizens and expats, foreigners are more likely to have offshore assets.
Tax returns will be only accepted through online submission. Therefore an electronic certificate issued by the Tax Office is required to submit the tax forms.
For more information please contact your specialist team at Corral & Alcaraz. It is not worth risking your assets.