Form 720 Spain: Essential Guide for Expats with Foreign Assets

Last Updated on May 19, 2026 by Bruno Bianchi

Form 720 Spain is an informational tax form that many new residents with assets abroad must file, and ignoring it can still lead to painful fines even though the worst penalty regime was abolished in 2022. This guide explains in plain English when Spainguru readers actually need to worry about it and how it affects Americans, Brits, and other expats settling in Spain.

What is Form 720 Spain?

Form 720 is Spain’s annual informative declaration of assets and rights held outside Spain by Spanish tax residents. It does not calculate tax itself, but it gives Hacienda a detailed picture of your foreign wealth for future checks.

In practice, Form 720 is where you report things like foreign bank accounts, brokerage accounts, pensions, and overseas property once you become tax resident in Spain. For many Spainguru readers this will mean declaring US, UK or other home‑country assets that you keep after moving to Spain.

Who must file it?

You are generally required to file Form 720 if:

• You are a Spanish tax resident, typically meaning more than 183 days in Spain in a calendar year or having Spain as your main economic center.
• You own, are a joint owner, beneficiary, authorised signatory or have disposal powers over foreign assets where any of the three asset groups exceeds 50,000 euros in total value.

Those three groups are:

• Bank and savings accounts held in financial institutions abroad.
• Securities, investments, life insurance/annuities, and similar financial products held abroad.
• Real estate and rights over real estate located outside Spain.

The 50,000 euro threshold is applied separately to each group, so you might be obliged to declare one group and not the others. Many US and UK expats reach the threshold just with retirement accounts or home‑country property, even if they keep relatively little cash in foreign bank accounts.

When do you file and how often?

Form 720 is filed online via the Spanish Tax Agency’s electronic office between 1 January and 31 March for the previous tax year. For example, assets held on 31 December 2025 must be reported by 31 March 2026 if you meet the thresholds.

Contrary to popular belief, it is not always an every‑year form for life.

• You must file the first Form 720 when you first exceed 50,000 euros in any asset group as a Spanish tax resident.
• Afterwards, you only have to file again if there is an increase of more than 20,000 euros in a previously declared group or if assets are cancelled, sold, or closed and those changes need to be reported.

This “20,000 euro rule” is key for long‑term expats who may not realise they have to file again after several years of investment growth or major changes in their portfolios.

What changed after the EU court ruling?

For years Form 720 was infamous because the Spanish sanction regime was considered abusive, with disproportionate fixed fines and a 150% penalty on undeclared amounts treated as unjustified capital gains without prescription. In 2022 the Court of Justice of the European Union forced Spain to change these rules, and Law 5/2022 removed the harshest aspects of the system.

Key changes include:

• Removal of the 150% proportional fine tied to undeclared foreign assets.
• Elimination of the special rule that made these “hidden” gains effectively non‑prescriptible.
• Alignment of Form 720 penalties with the general Spanish General Tax Law regime for failures in informative obligations.

However, the obligation to submit Form 720 if you meet the criteria remains fully in force, and there are still fines for late, incorrect, or non‑submission. Typical current penalties, depending on the circumstances, can start around 1,500 euros for late filing without prior notice from Hacienda and increase if there is serious non‑compliance, especially involving assets outside the EU.

Form 720 Spain: How It Affects US and UK Expats

For Americans, Brits and other non‑EU nationals moving to Spain on visas like the non‑lucrative visa, digital nomad visa or retirement schemes, Form 720 is often one of the most confusing parts of tax compliance. The form itself is not a tax, but it interacts with your wider Spanish tax obligations on worldwide income and wealth once you become tax resident.

Common expat scenarios include:

• US retirement accounts (401(k), IRA, Roth IRA, etc.) or UK pensions often need to be disclosed on Form 720 once the total value in the relevant asset group exceeds 50,000 euros.
• Keeping a former main home in the US or UK and renting it out will typically mean reporting that foreign property, even while Spanish tax rules also tax the rental income and may look at capital gains on eventual sale.
• Large brokerage accounts with ETFs, stocks or mutual funds held with US or UK platforms will normally fall into the “securities and investments” category and may also have separate Spanish tax treatment (for example, PFIC issues for US funds or non‑harmonised foreign funds).

Because Spain taxes residents on worldwide income and subject to wealth tax thresholds depending on region, the information reported in Form 720 can be cross‑checked against your annual income tax and wealth tax declarations. This is why many international tax advisers insist that new residents take Form 720 seriously even after the penalty changes.

Planning your move to Spain? Check out our complete Moving to Spain guide, learn about the Non-Lucrative Visa, explore the cost of living in Spain, and discover your Digital Nomad Visa options.

Form 720 Spain: Practical Tips for Expats

For Spainguru’s community of movers to Spain, a few practical guidelines go a long way:

• Treat Form 720 as part of a complete tax plan: coordinate it with your Spanish income tax returns, wealth tax, and any treaty positions under US‑Spain or UK‑Spain tax treaties.
• Track your asset values annually as of 31 December in euros so you can see when you cross the 50,000 euro threshold in each group and whether the 20,000 euro increase rule triggers a new filing.
• Keep documentation from foreign banks, brokers, pension providers and property managers that shows balances and valuations in case Hacienda asks for support.
• Get professional advice before your first Form 720 filing, especially if you hold complex structures, foreign companies, trusts, or large retirement accounts abroad.

Form 720 is no longer the “nuclear bomb” it once was, but it is still a mandatory declaration that Spanish tax residents with significant foreign assets cannot ignore. With informed planning and, where needed, specialist advice, most expats can comply without drama and focus on enjoying their new life in Spain.

This article is for information purposes only and is not tax advice. Please consult with expert tax professionals.

Bruno Bianchi CEO & Spain Immigration Expert

Bruno Bianchi is the founder and CEO of Spainguru, Spain's largest expat immigration community with 150,000+ members. Since 2014 he has helped thousands of people relocate to Spain through expert guides, webinars and vetted professional services covering visas, residency, taxes and life in Spain.

See Full Bio

Spain Non-Lucrative Visa Spain Digital Nomad Visa Spanish Residency Taxes in Spain for Expats Moving to Spain