(Updated as of March 2022)
Frequently asked questions model 720 (March 2014)
No, there is no obligation to report them.
The same criterion is applied to goods and rights subject to the reporting requirement specified in Articles 42.3 and 54.2 of the General Regulations approved by Royal Decree 1065/2007, of 27 July, so that, if they are acquired during the year but the taxpayer ceases to hold them in the course of that year, there is no requirement to report them.
No, the date of extinction of the assets included in article 42 ter of the General Regulations approved by R. D. 1065/2007, of 27 July, is not an obligatory field to report.
Therefore you may group the information related to transfers of securities homogeneous to those for which you must declare.
No, there is no obligation to report in the case of the transfer of securities, provided that this does not imply the cancellation of the status of holder or beneficial owner of the securities.
The cancellation of securities, which have already been reported or were required to be reported in the information return on assets and rights located abroad, must be reported.(Not from the sale of securities that are acquired and sold during the year and before 31 December).
You only have to report all the securities, insurance and income (obligation established in article 42 ter of the General Regulations approved by R. D. 1065/2007), which you hold on 31 December 2013, if the joint value of the same on this date, experiences an increase of more than 20,000 euros compared to the joint value that determined the obligation to file the last declaration of assets and rights located abroad (Article 42 ter.5 of the General Regulations approved by R. D. 1065/2007, of 27 July).
However, if this loss of ownership was the result of purchase and sale transactions, and the amounts obtained were reinvested in full in the acquisition of other securities (article 42 ter of the General Regulations approved by R. D. 1065/2007), the obligation to report on each of the cancellations may be replaced by the obligation to declare the balances at 31 December, regardless of whether or not the combined value of all the assets and rights included in article 42 ter of the aforementioned Regulations has increased by more than 20,000 euros.
The amount re-invested will be considered to be the total amount when the amount obtained is re-invested, after subtracting, if necessary, the inherent or usual expenses and commissions in this type of operations.
In accordance with articles 42 bis.5, 42 ter.5 and 54 bis.7 of the General Regulations approved by R. D. 1065/2007, information must be provided on the cancellation or extinction of the ownership of the shares in the special purpose vehicle and, in turn, of the extinction of the real ownership of the assets and rights located abroad, which in turn were held by the special purpose vehicle.
Similarly, and as a consequence of the change in legal form or condition in which the ownership is held on the goods and rights located abroad with respect to those that you are not longer the real owner of, in order to become the owner (legal/formal), you must declare the new ownership (legal/formal) of these goods and rights located abroad.
In this regard, it is important to remember the impact that the correct declaration of the form of ownership has for the purposes of direct taxation in accordance with section 3 of the Eighteenth Additional Provision of the LGT.
Yes, there is an obligation to declare.