(Updated as of March 2022)
There is an obligation to inform about the revocation of this authorisation; the taxpayer should inform about the balance that existed in this account on the date of the revocation.
The content of the declaration in relation to this account in the case that there is an obligation to declare it should include:
The company name or full name of the banking or credit entity, as well as its address.
The complete identification of the account.
The date of the revocation of the authorisation.
Balance of the account on the date on which authorisation ended.
If the constituent or "settlor" is a resident in Spain, he or she has the obligation to inform on goods and rights located abroad as their holder.
If the "trustee" is a resident, he or she should inform on his or her being authorised, that is, a person with the right to dispose or a beneficiary holder of the accounts located abroad, or on the real ownership that he or she may hold on the rest of goods which are the object of the obligation to declare.
If the beneficiary(ies) are residents, and they are real and effective beneficiaries, that is, they are not "potential beneficiaries," they should inform about the accounts and temporary or lifetime incomes.
These answers shall be understood in any case without prejudice to the existence of a real holder according to the provisions of section 2 of article 4 of Law 10/2010, dated 28 April, on preventing money laundering and financing terrorism.
The ownership of the account implies the authorisation on it. In this sense, as both conditions fall on the same person, it is only obligatory to inform about the ownership.
The tax address refers to the same financial year as the information return does.
Example: people that were non-residents (for tax purposes) in Spain in 2012 but that are going to be residents in 2013, and viceversa. Which is the criterion that must be used when submitting the Form?
If the person was not within the subjective scope of the obligation in fiscal year 2012, in fiscal year 2013 they are not required to present Form 720 (article 42 bis, 42 ter and 54 bis of the RGAT).
If in financial year 2013 this person is in the subjective area of the obligation to declare he or she must submit the informative return in financial year 2014 for the information from financial year 2013.
The condition of beneficiary is included in the General Regulations approved by RD 1065/2007, of July 27, for the purposes of this informative statement, exclusively for “accounts” (article 42 bis of the aforementioned General Regulation) and for temporary or life annuities (article 42 ter.3.b) of the aforementioned General Regulation ).
In both cases it is not a mere “potential beneficiary” but rather an “effective or real” beneficiary.
When the loss of the condition of holder or real owner as set out in the last paragraph of article 42 ter.1 was caused by the transfer of values and rights and the amount obtained was destined completely to the acquisition of other values or rights that are subject to a tax return, the taxpayer must only declare the balances as of 31 December that are stated in the aforementioned section.
In so far as a "global account or custody" consists of different goods, whether they be shares, stocks, deposits or others, each good should be declared individually, since they could constitute goods representing different obligations to declare despite being the subject of information in same form 720.
If consolidation of the ownership of the building takes place, the date on which the person becomes the "holder" (on which the ownership is consolidated) should be declared, and the total acquisition price should be indicated (the value of the right in rem and the value of consolidating the ownership).
The amount to be assigned in these cases will be the one corresponding to its stock percentage calculated by adding to the total amount the amount for which the corresponding part of the good was purchased. Since the cost price of the rest of participants is not known, the total value of the good thus calculated (raised to 100% the value corresponding to its percentage), will be the limit to determine the duty to declare, so there will be participants obliged obliged to pay and others not.
If a resident "A" acquired 50% of a property located abroad in the year "n" for an amount of €20,000 and in the year "n+3" another resident "B" acquires another 50% of the same property located abroad by an amount of €40,000. How must each of the holders declare the ownership they hold on this property?
Resident "A" does not have duty to inform about this property. The value that will have been taken into consideration to determine the existence of the obligation to report, will be, for this property, the acquisition value of its participation raised to the full, that is, since it holds 50% and its share cost it 20,000 euros, the The amount that must be considered as the determining limit of the obligation is 40,000 euros.
Resident "B" has duty to inform about this property. The value that determines the existence of its duty in the terms established in article 54 bis of the General Regulation, will be the cost price of its participation raised to the full amount, that is, €80,000.
The taxpayer with obligation to declare must take into account the following values of the goods and rights abroad on the dates indicated below:
Regarding the accounts of article 42 bis of the approved General Regulation RD 1065/2007, of July 27: The account balances as of December 31 and the average balances for the last quarter.
Regarding the values of article 42 ter.1 of the approved General Regulation RD 1065/2007, of July 27: The balances of the securities as of 31 December.
As for the shares or stocks in Unit Trust Institutions as stipulated in article 42 ter.2: Net asset values as of 31 December.
As for insurances included in article 42 ter.3.a): Surrender values as of 31 December.
With respect to the incomes outlined in article 42 ter.3.b): Capitalization values as of 31 December.
The obligation to declare affects the resident company with respect to its stock in the non-resident company, although declaration will not be mandatory when the company is exonerated because one of the stipulations of article 42.ter.4. Therefore, when one of these cases exists in the resident company, the individual will not have to declare the shares in the non-resident company, or the assets which make up the worth of said company.
The above will be applied as long as the non-resident company carries out an economic activity through the corresponding organisation of material resources and staff, that is, that it does not have an instrumental nature whose end is the mere indirect control of the goods on the behalf of the real holder.
The resident must declare his or her participation in the first non-resident company.
The prior must be applied as long as the non-resident companies carry out an economic activity through the corresponding organisation of material resources and staff, that is, that they do not have an instrumental character whose purpose is merely the indirect control of the goods on behalf of the real owner.
In this case, the taxpayer must report the assets and rights of which he or she is the “real” owner abroad.
In any case, the taxpayer should also declare ownership on the shares of the instrumental society that continues being the mere "formal" holder of the goods.
Yes, according to article 42 bis of the General Regulation approved by RD 1065/2007, of 27 July, he or she must declare it. There is no exceptional circumstance on the account of the financial organisation located abroad which receives the payroll that does not allow this money to be subject to the obligation to declare.