Spanish Tax and US Expats: How is Modelo 720 Used for Reporting?


Do the Spanish Tax authorities have access to personal US income taxes and assets, or is it all self reporting on the Modelo 720 for example?


These are the answers of Spainguru’s Facebook group members:

“the US does not participate in CRS (Common Reporting Standard). There is reporting but not as smooth as the CRS one.”

“Yeah, there is no cheating the Spanish taxman. They have an agreement with the U.S. In addition to the regular income tax return, you could also be required to file an informational return on your assets held in foreign bank accounts with Foreign Bank and Other Account Reporting (FBAR) Form 114, in addition to Form 8938 Statement of Specified Foreign Financial Assets. Good news is Spain will deduct the taxes you paid in the U.S. from what you owe them.”

“They can request it, yes, under double taxation treaty.”

“Modelo 720 is not income tax, it’s assets held worldwide. Income tax is by tax filing.”


From the insights provided by the members of Spainguru’s Facebook group, it’s clear that while the US does not participate in the CRS, Spanish tax authorities do have mechanisms in place to access or request information about US expats’ taxes and assets.

The Modelo 720 plays a key role in self-reporting assets held worldwide, not income.

Furthermore, agreements like the double taxation treaty facilitate transparency between the US and Spain, allowing for tax offsets that consider taxes paid in the US.