Spanish residents with foreign assets above €50,000 are still required to file Modelo 720 every year. What changed in 2022 — when the European Court of Justice struck down Spain’s penalty regime as disproportionate — is the cost of getting it wrong, not the obligation itself. This guide walks through the 2024 reporting thresholds, the post-ruling sanctions, and the practical steps for residents who have only recently moved to Spain.
Who has to file Modelo 720
Anyone tax-resident in Spain on 31 December of the reporting year, holding foreign assets in any of three categories above €50,000, must declare them. Tax residency is triggered by spending more than 183 days in Spain in a calendar year, having your main economic interests in Spain, or having a non-separated spouse and minor children resident here.
The three asset categories are reported separately, each with its own €50,000 threshold:
- Bank accounts — current, savings, deposits, credit balances, anywhere outside Spain.
- Securities and rights — shares, bonds, life insurance, pension plans, stakes in foreign companies, and rights to income or capital from such instruments.
- Real estate — any property or right over property located outside Spain.
If a category sits below €50,000 you do not file for that category. If it crosses €50,000 in any one category, you file for that category only.
Filing deadline and how to file
The reporting window is 1 January to 31 March of the year following the reference period. The 2024 filing covers assets held during 2023. Modelo 720 is electronic-only via the Agencia Tributaria portal (sede.agenciatributaria.gob.es) and requires a digital certificate, Cl@ve PIN, or an authorised tax adviser submitting on your behalf.
What the EU ruling actually changed
In January 2022 the Court of Justice of the European Union (case C-788/19) ruled that Spain’s Modelo 720 penalty framework violated the free movement of capital. Three things were struck down:
- The 150% punitive fine on undeclared assets, treated as unjustified capital gains.
- The fixed minimum penalties of €1,500 to €10,000 per piece of missing data, which could exceed the value of the asset itself.
- The absence of a statute of limitations, which let the tax authority pursue undeclared assets indefinitely.
Spain repealed the regime in March 2022 (Law 5/2022). The obligation to file remained; only the disproportionate sanctions were removed.
What sanctions still apply
Late filing or missing data is now governed by the ordinary General Tax Law regime:
- Late filing without prior request from the tax authority — €100 per data point, minimum €1,500.
- Late filing after a request — €200 per data point, minimum €3,000.
- Submission with errors or omissions — variable fines up to 50% of the unreported amount, applied as a regular tax infraction rather than the old fixed scale.
- Standard four-year statute of limitations now applies (Article 66 LGT).
These are still real costs, but they are proportionate to the breach.
Common situations for foreign residents
You moved to Spain mid-2023. If you became tax-resident in 2023, your first Modelo 720 is due by 31 March 2024 covering assets at year-end 2023.
You declared in a previous year and nothing changed. You only re-file if (a) the value of any category increased by more than €20,000 from the last declaration, (b) you closed an account or sold an asset, or (c) you acquired a new asset.
You hold assets through a foreign trust or company. Beneficial ownership counts. If you are the beneficial owner, you declare your stake.
You hold cryptocurrency on a foreign exchange. Crypto is now reported separately on Modelo 721 (introduced in 2024) — not on Modelo 720.
Practical advice
- Reconstruct year-end balances early. Foreign banks may take weeks to issue 31 December statements.
- Track the €20,000 increase rule per category, not per asset. A €25,000 jump in one bank account triggers a refile only if it pushes the category total up by €20,000+.
- Keep documentation for ten years. Even though the statute of limitations is now four, beneficial-ownership disputes can reach further back.
- Get advice before your first filing. First-year residents almost always have the most complex declaration — overseas pensions, holiday properties, dormant accounts they had forgotten about.
If you have recently moved to Spain or are unsure whether your assets cross the threshold, book a free consultation and we will walk through your situation before the 31 March deadline.
