# Modelo 720 and money abroad



## bt1980 (Jul 31, 2021)

Hello,

I recently inherited a property in the USA and im planing to sell.

Problem is Im a Spanish resident and I've read that I need to declare this.

Does anyone know how much would I have to pay?

Any way to circumvent this?

Thank you.


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## Alcalaina (Aug 6, 2010)

Modelo 720 is just where you declare overseas assets worth over €50k. It isn’t a tax declaration, it’s just to stop wealthy people hiding their assets overseas. If you sell the house and transfer the money to Spain before the end of this year, you won’t need to do it.

in your case you would need to declare your inheritance with Modelo 650, which the tax office will use to work out what you owe. This depends on various factors - Which region of Spain you live in, your relationship to the deceased etc. I’d get a gestor or accountant to do it if I were you.


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## bt1980 (Jul 31, 2021)

Alcalaina said:


> Modelo 720 is just where you declare overseas assets worth over €50k. It isn’t a tax declaration, it’s just to stop wealthy people hiding their assets overseas. If you sell the house and transfer the money to Spain before the end of this year, you won’t need to do it.
> 
> in your case you would need to declare your inheritance with Modelo 650, which the tax office will use to work out what you owe. This depends on various factors - Which region of Spain you live in, your relationship to the deceased etc. I’d get a gestor or accountant to do it if I were you.


Hi,

Thanks for your help.

I've looked quickly through Google and don't understand it.

I reside in Madrid. I see there is a 1% but it's not of the total.

Can you explain? 

Thanks you.


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## kaipa (Aug 3, 2013)

Technically if you sell the property you are meant to declare that to the Spanish taxman. In reality if you sold it and kept the money in US it is almost impossible for Spain to know. If you transfer it to Spain then you would need to declare it as your bank would probably flag it up. The inheritance tax depends on factors highlighted by the other poster however the good news is that in Madrid the local inheritance tax level is around a million euros so it hardly affects anyone. If you are bringing the money to Spain a gestor to sort all the paperwork and make sure it is done within six months of you officially getting the inheritance.


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## bt1980 (Jul 31, 2021)

kaipa said:


> Technically if you sell the property you are meant to declare that to the Spanish taxman. In reality if you sold it and kept the money in US it is almost impossible for Spain to know. If you transfer it to Spain then you would need to declare it as your bank would probably flag it up. The inheritance tax depends on factors highlighted by the other poster however the good news is that in Madrid the local inheritance tax level is around a million euros so it hardly affects anyone. If you are bringing the money to Spain a gestor to sort all the paperwork and make sure it is done within six months of you officially getting the inheritance.


Hi,

I would like to purchase an apartment in Spain to retire so i would like to bring some the funds in.

The thing is i dont know how much is Spain going to tax me. Depending on this i would decide if to bring it or not.

If i keep the money in the USA in an investment company. How would I bring money in?

Thanks for the explanation.


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## Alcalaina (Aug 6, 2010)

Was the inheritance from a close relative - parent or grandparent? Is it less than a million euros? If both those are true, you are unlikely to have to pay any tax. But you really do need to talk to an accountant rather than rely on unqualified posters on discussion forums!


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## bt1980 (Jul 31, 2021)

Alcalaina said:


> Was the inheritance from a close relative - parent or grandparent? Is it less than a million euros? If both those are true, you are unlikely to have to pay any tax. But you really do need to talk to an accountant rather than rely on unqualified posters on discussion forums!


Yes It was form my mother.

I found a calculator for inheritance tax on the comunidad de Madrid website. Really handy.

I have to pay 1% of the inheritance tax i Spain. Because of i live in Madrid.

So i will probably bring all the money into Spain.


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## kaipa (Aug 3, 2013)

If you are declaring it you need to make sure you have informed the tax authorities within 6 months as there is a fine if you dont. In otherwords you need to do this separate from your yearly tax submission
I would get a good gestor to arrange everything.


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