Declaring overseas assets in Spain is not optional and the penalties for mistakes can be severe. While it is technically possible to file the declaration yourself, doing so without professional help carries significant risk. A qualified Spanish tax specialist can help you get it right first time, reduce stress and protect your financial position in Spain.
Many people moving to Spain believe their tax obligations end at declaring Spanish income. In reality, Spanish residents are also required to disclose assets held abroad once certain thresholds are exceeded.
This rule, often misunderstood or overlooked, is one of the most common reasons expats receive unexpected fines.
Even though the process can technically be completed yourself, understanding what needs to be declared, when to file and how to value assets correctly is rarely straightforward. Working with a qualified Spanish tax advisor can help ensure you stay compliant, avoid penalties and feel confident that nothing has been missed.
The information in this article is for general guidance only. It does not constitute tax advice and should not be relied upon for making personal financial decisions. Always seek advice from a qualified Spanish tax professional before acting.
You are required to report overseas assets if you are tax resident in Spain and hold any of the following worth more than €50,000 in total (per asset category):
Once reported, future declarations are required only if the value of an asset group increases by more than €20,000 or if you dispose of an asset previously declared.
Reporting typically occurs early in the calendar year for the previous tax period. Failing to file, filing late, or omitting information can lead to heavy penalties.
Many newcomers to Spain rely on rules they know from their home country. Common errors include:
Penalties are based not only on unpaid tax but also on the failure to report. Even if you owe no extra tax, fines can still apply for inaccurate or late filings.
Technically yes.
The reporting process can be completed through Spain’s online tax system and some English-language guidance exists. But for most expats, the risk of misunderstanding the fine detail outweighs any savings on professional fees.
Spanish tax documentation is only available in Spanish, the online portal can be difficult to navigate, and translating terminology from UK or other systems often leads to mistakes.
Even simple errors like using the wrong currency conversion date can invalidate the filing resulting in a fine or penalty.
Form 720 can be particularly challenging. For accounts, the Spanish tax authority requires both the balance at 31 December and the daily average balance for the final quarter of the year. Many foreign banks and brokers do not provide this information in the required format. In addition, the exact account opening date must be supplied, which many people do not know. These details seem small, but incorrect values or missing dates can trigger penalties.
A professional advisor not only ensures the forms are correct but can also review how your wider financial structure fits within Spain’s tax framework.
For example, the way a UK pension or offshore bond is declared may influence your future tax efficiency or inheritance planning.
These are the principal forms that relate to overseas assets and wider foreign-held financial interests:
Form 720 is required for the declaration of overseas assets and rights held outside Spain. This includes being an authorised signatory on someone else's account. For bank accounts, two values must be reported: the balance at 31 December and the daily calculated average balance for the final quarter of the year.
You also need the exact account opening date, which many expats do not have, making this the most complex form.
Form 720 applies to:
Form 100 and/or Form 151 are used for personal income tax return for residents.
Form 100 applies to standard residents. Form 151 applies to people taxed under the Beckham Law regime.
Form 714 is used for the annual wealth tax return, where applicable depending on region and thresholds.
Form 721 is used to declare overseas virtual currency holdings above €50,000. Crypto held in a Spanish cold wallet (for example, a USB hardware wallet) does not need to be reported here.
A free discovery call is designed to identify whether you are likely to have a reporting requirement and outline the next steps. It is not a substitute for a personalised review. During this call, the advisor can get a better understanding of:
However, the advisor cannot provide specific calculations or prepare filings within a free call. These require detailed access to your financial information and must be handled through a paid engagement. This is for your protection as well as the advisor.
By moving beyond the discovery call and engaging a professional formally, you shift the responsibility from guessing to knowing.
Paying for professional support does not just ensure correct reporting. A specialist can also help structure your move and financial affairs to take advantage of tax benefits available to new arrivals. This planning often needs to be done before or shortly after moving to Spain and provides three main benefits:
We regularly speak to people who contact us a year after arriving, by which point it is too late to access some reliefs or structure their assets efficiently.
Early advice can reduce future tax exposure and prevent avoidable mistakes.
Spanish tax residents must declare overseas bank accounts, investments and property if the total value in any category exceeds €50,000.
Failure to report or incorrect reporting can lead to significant fines, interest and further investigation, even if no extra tax is owed.
Yes, it is possible to file personally through Spain’s online system. However, the forms are complex, available only in Spanish and errors are common. Professional assistance ensures accuracy and compliance.
The call helps identify whether you need to file and what information will be required. It is an initial discussion, not a detailed review or preparation of filings.
Paying for professional help ensures your filings are correct, your wider tax position is reviewed, and you avoid penalties or stress caused by incorrect self-filing.
You should speak to a Spanish tax specialist if any of the following apply:
If you speak to one of our trusted partners before moving to Spain, or soon after arrival, we may also be able to structure your move in a way that reduces your long-term tax burden.
By requesting an introduction to one of our partners, we can connect you with a fully qualified Spanish tax expert for a free initial discovery call.
During your discovery call they will:
After the discovery call, you will receive a proposal for personalised support if needed. This ensures any declarations is handled accurately and gives you full confidence in your compliance.
