Do I have to submit a Modelo 720 every year?

This is set out in articles 42 bis, 42 ter and 54 bis of Royal Decree 1065/2007, which regulate the three categories of the form:

• accounts with financial institutions abroad;
• securities, insurance and annuities;
• real estate.

Each category is assessed separately. You may therefore have to file only for your accounts, because your savings have grown, and not for your property.

Practical examples

• Year 1: you hold €80,000 in an account in Germany and file for the first time.
• Year 2: the balance is €92,000. The increase is €12,000, below €20,000, so you do not need to file.
• Year 3: the balance reaches €105,000. Compared with your last return (€80,000), the increase is €25,000, so you must file.
• Year 4: you close that account and move the money to Spain. You must file to report the closure, even though you no longer hold anything abroad.

The increase is always measured against the value in your last filed return, not the previous year’s value. Several small increases can therefore add up and trigger a new filing.

What you do have to do every year is declare on your income tax (IRPF) return the income those assets produce, even when no Modelo 720 is due. That includes interest on accounts and deposits, dividends, gains from selling securities or funds, and rent or deemed income from property abroad. If you hold crypto-assets abroad, also check Modelo 721, which follows the same threshold logic.

Changes are assessed at 31 December each year and, where a return is due, Modelo 720 is filed between 1 January and 31 March of the following year. Keeping a record of the values you report each year helps you avoid oversights and penalties.

At Taxmind we track your thresholds year by year and let you know when you need to file Modelo 720 again.