Modelo 720
AEAT Sede Electrónica Schema
Additional Provision 18 Ley 58/2003 (LGT) & Article 93 LIRPF.
Ley 35/2006 (LIRPF) & Ley 28/2022
Carlos Mendoza, Asesor Fiscal
REAF Reg. #48291 (Verified EEAT)
1. Legal Overview & Purpose
Modelo 720 (Declaración Informativa sobre Bienes y Derechos Situados en el Extranjero) is Spain’s notorious foreign asset declaration form requiring standard tax residents to report foreign bank accounts, investments, and real estate exceeding €50,000. Beckham Law taxpayers enjoy complete statutory exemption from this requirement.
2. Statutory Framework & Legislative Authority
Enacted under Additional Provision 18 of General Tax Law (Ley 58/2003). Article 93 LIRPF explicitly establishes that Beckham Law taxpayers are subject to IRNR rules, releasing them from personal obligation (obligación personal) asset reporting.
3. Step-by-Step AEAT Filing Procedure
Step 1: Confirm active approved Beckham Law status (Modelo 149 resolution).
Step 2: Verify that no Spanish domestic tax rules require foreign reporting for your filing profile.
Step 3: Enjoy 0% filing obligation for foreign accounts, stocks, and overseas property during your 6-year regime window.
Step 4: Maintain accurate record of asset purchase dates to establish cost bases for future capital gains evaluation.
Step 5: Prepare for mandatory Modelo 720 compliance starting in Year 7 if remaining in Spain as a standard tax resident.
4. Critical Pitfalls & AEAT Audit Risks
5. Practical Case Study & Tax Savings Outcome
German Fintech Executive in Madrid with €2.5M in Frankfurt brokerage accounts and €1.2M Munich apartment.
Standard resident must file detailed annual Modelo 720 reporting every IBIN, ISIN, and property registry entry.
Under Beckham Law, 0 filing required. Complete statutory privacy and zero administrative compliance overhead for 6 years.
6. Frequently Asked Compliance Questions
Q:Why are Beckham Law taxpayers exempt from Modelo 720?
Because Beckham Law taxpayers are taxed under Non-Resident Income Tax (IRNR) rules. Non-residents are only subject to tax and reporting on Spanish assets.
Q:Are there any circumstances where a Beckham Law resident must file Modelo 720?
No. As long as your Beckham Law special regime status remains active and approved, you are 100% exempt from Modelo 720.
Q:What happens if AEAT sends me a inquiry letter about my foreign bank accounts?
You simply reply with your official Modelo 149 approval resolution certificate, confirming your special non-resident tax status.
Q:What happens in Year 7 when Beckham Law ends?
In Year 7, you become a standard Spanish tax resident and must file Modelo 720 by March 31 of Year 8 for all foreign asset groups exceeding €50,000.
Q:Did the European Court of Justice (ECJ) overturn Modelo 720 penalties?
Yes, in January 2022 the ECJ struck down Spain’s disproportionate 150% penalties and statute of limitations rules, but the reporting requirement remains mandatory for standard residents.