When must you make first Form 720 declaration?
- peteroldracer
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When must you make first Form 720 declaration?
Partner’s son has moved to Andalucia (Torrox area) on NLV. When would he have to make his first declaration of assets outside Spain on Form 720? He is being told that he must declare this month…he has invested in a UK bank, but is not yet a tax resident, so surely first declaration would be end of 2024 or even 2025?
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Re: When must you make first Form 720 declaration?
Until he becomes tax resident he does not have to declare.
When he meets the 183 day criteria he must declare income and assets. This declaration would be in the year following becoming tax resident. Form 720 is normally submitted before March 31st and income by the end of June. The value of the declared assets is based on their value on December 31st of the tax year in question.
Out of interest, who gave you advice to the contrary?
Sid
When he meets the 183 day criteria he must declare income and assets. This declaration would be in the year following becoming tax resident. Form 720 is normally submitted before March 31st and income by the end of June. The value of the declared assets is based on their value on December 31st of the tax year in question.
Out of interest, who gave you advice to the contrary?
Sid
- peteroldracer
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Re: When must you make first Form 720 declaration?
Not sure Sid - suspect the usual man in a bar…lol. I will put him right. Sadly he cannot get broadband without spanish bank account and they would not let them open one without the NLV..
In UK until tomorrow but still 400 kms up the road from them when home. I will suggest he joins this forum.
In UK until tomorrow but still 400 kms up the road from them when home. I will suggest he joins this forum.
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Re: When must you make first Form 720 declaration?
When you become tax resident do you have to declare your property you still own in the UK? We were planning to sell our property after about 6-12 months in Spain? Also what about savings in a bank in the UK, do you have to declare those if you are paying the tax at the moment in the UK on them?
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Re: When must you make first Form 720 declaration?
The whole point of Form 720 is to declare FOREIGN assets, hence any property or money etc must be declared for the year that you become tax resident in Spain.
More info in the FAQs here. viewtopic.php?f=42&t=30699
Sid
More info in the FAQs here. viewtopic.php?f=42&t=30699
Sid
- peteroldracer
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Re: When must you make first Form 720 declaration?
"planning to sell our property after about 6-12 months in Spain" Be very careful with this, as you may incur Capital Gains tax on the sale from the Spanish Tax man. Take advice as timing is everything!
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Re: When must you make first Form 720 declaration?
The CGT is much higher here than in the UK. If you can avoid it here then that would be advisable so, as others have said, take proper advice. We are in the process of selling a UK house and have to declare and pay CGT there within months of selling up, then that will be set off against what we pay here, but it will be considerably more here. As Sid says, foreign assets need to be declared on the 720 if over 50K, whether bank accounts or property.
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Re: When must you make first Form 720 declaration?
The reinvestment exemptions would apply even though the house is in the UK. If you reinvest the money from the UK sale (assuming it was your habitual residence) and buy a house in Spain, the capital gain is exempt from Spanish CGT.
More details here. https://www.solicitorsinspain.com/artic ... in%20Spain.
Sid
More details here. https://www.solicitorsinspain.com/artic ... in%20Spain.
Sid
Re: When must you make first Form 720 declaration?
For us, it was always an investment property for rental, so we do have to unfortunately pay CGT on the sale.
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