Form 720 is simply an informative declaration regarding assets and rights located abroad. At first glance, it may not seem more relevant or complicated than other informative returns (for example, Form 347 or Form 179). However, since its approval in 2013, it has always been surrounded by controversy.
Its most significant and widely discussed controversy was the ruling issued in January 2022 by the Court of Justice of the European Union (CJEU) regarding the penalties Spain imposed for incorrect or inaccurate filing of Form 720. Many taxpayers wondered whether this ruling meant the complete elimination of the form or only certain parts of it. Here, we explain it clearly and updated for 2026.
Table of Contents
Amendment of form 720 (effective from 11/03/2022 and status in 2026)
Under Law 5/2022, measures were adopted to adapt Form 720 to European regulations following the CJEU ruling. Since then:
- The specific penalty regime for Form 720 has been repealed.
- This means that the previous disproportionate penalties (such as the 150% penalty or thousands of euros per data point) no longer apply and have been replaced by the general infringement and penalty regime under the General Tax Law (Ley General Tributaria – LGT).
Important in 2026: Although the form itself remains in force, those who fail to comply with the obligation may face penalties under the general regime, which can reach up to €20,000 for failing to file or filing late, according to recent warnings from the Spanish Tax Authorities.
Specific penalty regime for form 720 (no longer in force)
Before the 2022 amendment, failure to comply with Form 720 entailed two types of penalties:
- A fine of 150% of the tax calculated on undeclared assets.
- Fixed-amount fines:
- €5,000 per omitted, inaccurate, or false data item, with a minimum of €10,000.
- €100 per data item filed late, with a minimum of €1,500.
These penalties were considered disproportionate by the CJEU and were therefore eliminated.
Purpose of form 720
The objective behind the creation of Form 720 was clear: the Spanish Tax Administration needed to obtain information from its tax residents regarding assets and rights held abroad, as it is more difficult to access this information compared to assets located within Spain. The authorities argued that the information exchanged with other EU Member States was not sufficient.
Form 720 still exists
Therefore, form 720 remains in force, and the obligation to file it still exists. However, the CJEU prohibited the application of the highly disproportionate specific penalty regime mentioned above.
In cases of non-compliance, incorrect filing, or late filing, the general penalty regime regulated under the General Tax Law (Articles 27 and 28, and 178 onwards of the LGT) will apply.
In summary, Form 720 is still valid. If you are required to file it, we strongly recommend doing so within the legally established deadlines, between 1 January and 31 March each year, in relation to the previous tax year.
Who is required to file form 720?
The following types of taxpayers are required to file form 720 if they fall under any of the three situations listed below:
- Individuals and legal entities resident in Spain.
- Permanent establishments in Spain of non-resident individuals or entities.
- Entities referred to in Article 35.4 of the General Tax Law (such as estates in administration and joint ownership entities).
Situations that trigger the obligation to report in form 720
1. Bank Accounts
Being the holder, co-holder, representative, authorised person, or beneficiary of accounts in financial institutions located abroad, whose average balance during the last quarter or balance as of 31 December jointly exceeds €50,000.
2. Securities
Being the holder or beneficial owner of securities, rights, insurance policies, and income deposited, managed, or obtained abroad, when their combined value exceeds €50,000. Pension plans are exempt.
3. Real Estate
Ownership of real estate or rights over real estate located abroad, with a combined threshold of €50,000.
A useful clarification in 2026: For these purposes, each category is assessed independently. If none exceeds €50,000 individually, even if the combined total is higher, you are not required to file (for example, €20k + €20k + €20k = €60k does not trigger the obligation if each group remains below the threshold).
Cryptocurrencies in form 720? (now a consolidated update)
If, as of 31 December 2025, you were the holder, authorised person, or beneficiary of cryptocurrencies located abroad with a value exceeding €50,000, you will be required to file the informative declaration regarding virtual currencies abroad (Form 721) between 1 January and 31 March 2026.
In this article, you will find detailed information about the new Form 721.
If you filed it for the first time, do you need to file again in subsequent years?
You will only need to file again in those tax years in which any of the three types of assets (bank accounts, securities, or real estate) has increased in value by €20,000 compared to the value reported in the previously submitted Form 720.
You must also file again if you sell a previously declared property or close a previously declared bank account.
Additionally, if you need to correct errors or add information, you may submit a replacement declaration with the correct data before the Tax Authorities formally request the information.
Conclusion
Although the specific penalty regime for form 720 was eliminated for being disproportionate, the obligation to file it remains in force in 2026 for those who hold assets abroad above the established thresholds.
Penalties are now applied under the general regime (LGT) and may still be significant if the form is not filed or is filed incorrectly. Therefore, it is advisable to carefully review your situation each year before 31 March.
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