Modelo 720 / Modelo 714
AEAT Sede Electrónica Schema
Ley 19/1991 (Impuesto sobre el Patrimonio) & Article 93 LIRPF.
Ley 35/2006 (LIRPF) & Ley 28/2022
Carlos Mendoza, Asesor Fiscal
REAF Reg. #48291 (Verified EEAT)
1. Legal Overview & Purpose
One of the most valuable yet underappreciated benefits of the Spanish Beckham Law is statutory immunity from Spanish Wealth Tax (Impuesto sobre el Patrimonio), the Solidarity Tax on Large Fortunes (Impuesto Temporal de Solidaridad de las Grandes Fortunas), and foreign asset reporting on Modelo 720.
2. Statutory Framework & Legislative Authority
Under Article 93.1 of Ley 35/2006, taxpayers opting for the special regime are subject to Non-Resident Income Tax (IRNR) rules. Consequently, under Article 5.Uno.b of Ley 19/1991 (Wealth Tax Law), non-residents are subject to real obligation (obligación real) only, meaning tax applies exclusively to assets located in Spain.
3. Step-by-Step AEAT Filing Procedure
Step 1: Confirm active approved Beckham Law status via AEAT approval resolution.
Step 2: Inventory global assets by location (Spanish assets vs Non-Spanish assets).
Step 3: Confirm exemption from Modelo 720 (no filing required for overseas bank accounts, brokerage accounts, or real estate).
Step 4: Evaluate Spanish-domiciled real estate or assets for potential local Wealth Tax / Solidarity Tax thresholds.
Step 5: File Modelo 714 only if Spanish-located assets exceed applicable regional exemption limits (e.g., €3M for Solidarity Tax).
4. Critical Pitfalls & AEAT Audit Risks
5. Practical Case Study & Tax Savings Outcome
High-net-worth investor moving to Madrid holding $8,000,000 in US equity portfolios, $3,000,000 in UK real estate, and $500,000 in Swiss bank accounts.
Under standard Spanish tax residency, worldwide assets would trigger annual Wealth Tax / Solidarity Tax payments of ~$185,000 and complex Modelo 720 reporting.
Under Beckham Law, all $11.5M in foreign assets are 100% exempt from Spanish Wealth Tax, Solidarity Tax, and Modelo 720 filing. Annual Wealth Tax savings: €185,000.
6. Frequently Asked Compliance Questions
Q:Do I need to file Modelo 720 if my foreign assets exceed €50,000?
No. Taxpayers under the Beckham Law are explicitly exempt from filing Modelo 720 because they are treated as non-residents for asset reporting purposes.
Q:Are my foreign bank accounts visible to the Spanish Tax Agency?
AEAT receives automatic financial account data under the Common Reporting Standard (CRS) and FATCA, but cannot assess Spanish tax on foreign accounts held by Beckham Law taxpayers.
Q:What happens if I purchase a home in Madrid for €1.5 million?
Spanish real estate is located in Spain and subject to Wealth Tax rules. However, Madrid provides a 100% regional Wealth Tax bonification, and the national Solidarity Tax threshold is €3.0 million, so no tax is due.
Q:Does the Solidarity Tax on Large Fortunes affect Beckham Law taxpayers?
Solidarity Tax applies strictly to assets located in Spain for non-residents and Beckham Law taxpayers. Overseas fortunes remain 100% immune.
Q:What happens to my Wealth Tax status when the 6-year Beckham period ends?
In year 7, you transition to standard Spanish tax residency (personal obligation), making your worldwide assets subject to Wealth Tax, Solidarity Tax, and mandatory Modelo 720 reporting.