Short answer
Modelo 720 covers three categories of assets located abroad, whenever any of them exceeds €50,000: accounts with financial institutions, securities and insurance, and real estate. Crypto-assets held in custody outside Spain do not go on this form but on Modelo 721. Once a category exceeds the threshold, every item in it is reported, not just the excess.
1. Accounts abroad. Current and savings accounts, term deposits and credit accounts held with banks or credit institutions outside Spain, including neobanks with a foreign IBAN. You report the balance at 31 December and the average balance of the last quarter. Accounts closed during the year must also be reported, with the date they were closed.
2. Securities, rights, insurance and annuities. These include:
- shares and holdings in companies;
- bonds and other debt securities;
- loans of capital to third parties;
- units in investment funds (IIC), valued at their net asset value at 31 December;
- life or disability insurance with a surrender value;
- life or temporary annuities taken out with foreign entities.
Shares and bonds are valued at their market price at 31 December and identified by their ISIN.
3. Real estate and rights over it. Homes, commercial premises and land abroad, plus timeshares, bare ownership, usufruct and other rights in rem. They are reported at their purchase value, not their market value.
Which brokers do not require Modelo 720? What triggers the obligation is not the broker’s nationality but where the securities are held. If a broker operates in Spain through a Spanish branch or entity and the securities are held in custody in Spain, they are not considered to be located abroad and are not reported on Modelo 720. If the broker holds the securities outside Spain, they must be reported once the category exceeds €50,000, even if the broker has a Spanish-language website or a Spanish IBAN. Before assuming anything, check your contract or tax certificate to see which institution holds the securities and in which country it is.
What is not reported: cash kept at home; movable assets such as cars, artworks or jewellery; and securities and accounts held with Spanish institutions, even if they invest in foreign assets. Crypto-assets are not reported either, because they go on Modelo 721.
At Taxmind we classify your assets abroad, check which ones must be reported and file your Modelo 720 with nothing left out.
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This answer is general information and does not replace advice on your particular case.