FAQs

Once Form 720 has been filed with regard to one or more of the disclosure obligations in it (referred to in question no. 1), this Form should only be filed again when, in relation to one or more of these obligations, there is an increase of the overall limit established for each information block above 20,000 euros compared with what the last declaration determined.

Example:

Form 720 is filed during fiscal year 2013, with respect to the information of fiscal year 2012.In this Informative Tax Return, bank accounts in financial institutions located abroad and properties abroad with the following balances and values were disclosed:

	Balance of the last quarter 2012	Balance at 31/12/2012
Account nº 1	40000	45000
Account nº 2	15,000	12,000
TOTAL OF THE BALANCES	55,000	57000

	Cost price
Property nº 1	50,000
Property nº 2	20,000
TOTAL value	70,000

The obligation to file the Informative Tax Return, Form 720, shall return in successive periods whenever an increase occurs in the overall limit established for each information block above 20,000 euros compared with what the last declaration determined.

2013 financial year

If the values of the properties do not change substantially in 2013 (and there is no other reason for reporting them, e.g. transfer), the combined balance of all accounts in the last quarter increases by €15,000 and the combined balance of all accounts on 31 December increases by €18,000, so that the total balances are as follows:

	2013 fiscal year
	Balance of last quarter 2013	Balance at 31/12/2013
Account nº 1	20,000	18,000
Account nº 2	40000	23000
Account nº 3	10,000	34000
TOTAL OF THE BALANCES	70,000	75000

The increases experienced in the overall balances of the accounts have been as follows:

	Increase of the overall balance in the last quarter	Increase of the overall balance as at 31 December
Increase versus fiscal year 2012	15,000	18,000

In fiscal year 2013 there will no obligation to file Form 720, with regard to the obligation to disclose properties abroad (Article 54 bis of the General Regulation approved by Royal Decree 1065/2007, of 27 July).Nor is there any obligation to file form 720, with regard to the obligation to report information on accounts in financial institutions located abroad (article 42 bis of the General Regulations approved by RD 1065/2007, of 27 July), as the joint balance (total) in the last quarter and the joint balance (total) at 31 December have not increased by more than 20,000 euros with respect to the amounts that determined the obligation to file in the last year in which they were filed, in this case the previous year (provided that there is no other cause for filing, such as the transfer or cancellation of any of them, as the case may be).

Financial year 2014:

If in fiscal year 2014 the overall balance of all accounts in the last quarter increases by €2,000 and the overall balance of all accounts as at 31 December increases by €10,000. The increases of balances for each year and in total are as follows:

	Increase of the overall balance in the last quarter	Increase of the overall balance as at 31 December
Increase versus fiscal year 2012	15,000	18,000
Increase versus fiscal year 2013	2,000	10,000

Increase versus the last fiscal year in which a declaration was filed due to this information disclosure obligation (Article 42 bis of the General Regulation approved by Royal Decree 1065/2007)

17,000

28000

The increase that must be taken into consideration is the increase experienced in the overall balance of the last quarter and of the overall balance as at 31 December compared with the balances identified by the obligation to declare accounts in financial institutions located abroad (Article 42 bis of the General Regulation approved by Royal Decree 1065/2007, of 27 July) in the last fiscal year in which it was filed.

In this case, the increase of the overall balance as at 31 December 2014 compared with the overall balance as at 31 December of the last fiscal year in which a declaration, Form 720, was filed due to this information disclosure obligation, has been above €20,000, so in fical year 2014 an Informative Tax Return, Form 720, shall be filed due to the obligation to disclose information on all accounts in financial institutions located abroad.

Regulations:The regulation of the "frequency" of submission of the information return in respect of each of the obligations is found in

• in Section 5 of Article 42.bis of the General Regulations passed by Royal Decree 1065/2007 of 27 July for accounts in financial institutions located abroad;
• in Section 5 of Article 42.3 of the General Regulations approved by Royal Decree 1065/2007 of 27 July for securities, rights, insurance and incomes deposited, managed or obtained abroad;
• in Section 7 of Article 54.bis of the General Regulations passed by Royal Decree 1065/2007 of 27 July for property and rights on property located abroad.