FAQs

There is no obligation to provide information on pension plans (contributions to them) as long as the incident that gives rise to the collection of the pension in the form of a temporary or lifelong income does not occur.

Article 42 ter of the General Regulation approved by RD  1065/2007, of July 27, refers to the Wealth Tax Law for the valuation of certain incomes. Specifically, in the case of temporary income and annuities.

Article 17 of the Wealth Tax Law, section Two, establishes that temporary or life annuities constituted as a result of the delivery of a capital in money, movable or immovable property, must be computed by their capitalization value (on the date of accrual of the tax), applying the same rules as those for the constitution of pensions established in the Tax on Property Transfers and Documented Legal Acts. Article 10.2.f of the ITPAJD Law values the “taxable base of pensions” by capitalizing them.

Therefore, as regards the possible obligation to report the consolidated rights in a pension plan located and established abroad, it must be taken into account that such rights are not included in any of the categories of assets and rights located abroad referred to in the Eighteenth Additional Provision of the General Tax Law and in articles 42 bis, 42 ter and 54 bis of the General Regulations on actions and procedures for tax management and inspection and for the development of common rules for procedures for the application of taxes.

However, to the extent that the conditions of the foreign pension plan establish the possibility of exercising the right of redemption in favor of the participant under the terms of a life insurance policy, it must be subject to information in accordance with article 42 ter.3.a).

In any case, once any of the contingencies covered by the plan has occurred, the beneficiary must report the rights existing in the plan, either indicating its redemption value, in accordance with article 42 ter.3.a), or in accordance with article 42 ter.3.b) if an annuity is established in his/her favor.

Yes, regardless of the type of redemption, if income is obtained as a result of its exercise, it must be reported. 

No.

Yes, this type of account does not imply any type of specialty that discriminates against other accounts located abroad in the terms established in article 42 bis of the General Regulation approved by RD 1065/2007, of July 27.

There is no obligation to report assets deemed as such.

However, it is different if these assets are the underlying assets of assets and rights subject to an information return, such as temporary income or annuities obtained from the delivery of cash, economic rights or real or personal property to institutions located abroad. In this case, you must report income thus obtained, regardless of the assets or rights provided.

There is only duty to declare the transfer to third parties of own capitals if they are represented by values.

Yes.

As long as there is no cause that exempts you from the obligation to submit an informative declaration as established in articles 42 bis, 42 ter and 54 bis of the General Regulation approved by RD 1065/2007, of July 27, must submit Form 720 regardless of whether the income with which these assets and rights were acquired was exempt or not.

No, the taxpayer only needs to declare when he or she holds the ownership or real ownership on the property, or the right in rem for said property.

Yes, the fact that the policyholder assumes the risks of the investment in which the provisions are materialized does not alter the obligation to declare.