# Modelo 720 (the dreaded)



## daveunt (Sep 7, 2017)

Hi all,

I'm just getting around to filling out the Modelo 720. As I understand it from the reading I've done, it is only necessary to declare assets in each section if the total of your holdings in that section exceeds €50,000 @ 31st December 2017.

So if I had holdings of over €50,000 in stocks and shares ISAs, for example, is it right that I would only have to fill out the section that relates to those holdings? I wouldn't also need to declare bank accounts because the total of those holdings wouldn't reach the €50,000 per section limit? Or does having one section that exceeds €50,000 require all of the other sections to be completed?

Also, I presume there is a standard exchange rate to use for the calculations. Does anyone know where I could get it from?

Cheers


----------



## snikpoh (Nov 19, 2007)

daveunt said:


> Hi all,
> 
> I'm just getting around to filling out the Modelo 720. As I understand it from the reading I've done, it is only necessary to declare assets in each section if the total of your holdings in that section exceeds €50,000 @ 31st December 2017.
> 
> ...



Just fill in those sections where your assets exceed 50k euros. Be careful with the exchange rate though (the figure to use for last year is 1.1270€ per £)


----------



## Megsmum (Sep 9, 2012)

Am I right. We have completed one last year, but nothings changed infact money’s reduced. My understanding is I don’t need to complete another?


----------



## snikpoh (Nov 19, 2007)

Megsmum said:


> Am I right. We have completed one last year, but nothings changed infact money’s reduced. My understanding is I don’t need to complete another?


That's my understanding too - I haven't done another one for a few years now.


----------



## Megsmum (Sep 9, 2012)

snikpoh said:


> That's my understanding too - I haven't done another one for a few years now.


Cheers


----------



## tebo53 (Sep 18, 2014)

It's my understanding that if your wealth has increased by €20,000 since your last declaration then you need to fill the 720 in again.

Steve


----------



## snikpoh (Nov 19, 2007)

tebo53 said:


> It's my understanding that if your wealth has increased by €20,000 since your last declaration then you need to fill the 720 in again.
> 
> Steve


That's what I read but my accountant says one should also fill a new one in if the amount decreases by that amount as well. The logic being that you may have fallen below the threshold.


----------



## daveunt (Sep 7, 2017)

Thanks snikpoh - much appreciated.

From what I've read, it also necessary to file again if you close one of the bank or investment accounts mentioned on a previous filing or even if your account number changes, such as in the case of your bank or investment provider being taken over by another entity who introduces their own reference numbers.


----------



## Megsmum (Sep 9, 2012)

Sorry

Nice but dim tim here


We were never above the threshold , so I’m not filling in another one?


----------



## snikpoh (Nov 19, 2007)

Megsmum said:


> Sorry
> 
> Nice but dim tim here
> 
> ...


If you were never above the 50k threshold in any asset class, why did you fill one in in the first place?

You certainly ought to rectify the situation so they know you are now below the threshold. (IMHO)


----------



## Megsmum (Sep 9, 2012)

snikpoh said:


> If you were never above the 50k threshold in any asset class, why did you fill one in in the first place?
> 
> You certainly ought to rectify the situation so they know you are now below the threshold. (IMHO)


Jointly we were approximately 52K not individually. Conflicting advice.

I’ll get onto it


----------



## Juan C (Sep 4, 2017)

Megsmum said:


> Jointly we were approximately 52K not individually. Conflicting advice.
> 
> I’ll get onto it


Just a thought.

My wife and I have joint accounts so in theory we hold 50% each, however, either of us can withdraw/use the whole amount so maybe for the 720 we both hold the full amount,


----------



## Megsmum (Sep 9, 2012)

Juan C said:


> Just a thought.
> 
> My wife and I have joint accounts so in theory we hold 50% each, however, either of us can withdraw/use the whole amount so maybe for the 720 we both hold the full amount,


I just went with what Gestor told me, figured better to declare than not. Our accounts are the same


----------



## CapnBilly (Jun 7, 2011)

Megsmum said:


> I just went with what Gestor told me, figured better to declare than not. Our accounts are the same


Your gestor was correct. If assets are held jointly, and exceed the reporting limit (€50,000) then they are reported by all resident individual parties, and their personal percentage share is declared.


----------



## Megsmum (Sep 9, 2012)

CapnBilly said:


> Your gestor was correct. If assets are held jointly, and exceed the reporting limit (€50,000) then they are reported by all resident individual parties, and their personal percentage share is declared.


Good. I trust him implicitly, so far he’s never made a mistake. Unlike the previous one who ended up costing me money and a lot of stress


----------



## Juan C (Sep 4, 2017)

I do not claim any expertise but I have now searched and found that this which appears to agree with my thoughts.

I hope I am not right, as I believe the minimum fine is 10,000 euros and maybe even 150% of the asset not declared, for each person with a share. 



Extract from:

http://https://www.janetanscombe.com/wp-content/uploads/005-Client-Guide-A-Guide-to-Modelo-720-Version-1.2.pdf

_You are obliged to report assets if you are the owner, the settlor of a trust of which you can benefit, authorised signatory, or you have the authority to dispose of the asset. This includes assets held by a company, a trust or fiduciary. 

You need to report even if your personal share of assets is less than €50,000. With joint assets, each owner needs to declare the full value (not pro-rated) and indicate their ownership percentage. _


----------



## Pesky Wesky (May 10, 2009)

This article was recommended to me. I haven't read it and it means nothing to me as unfortunately anything to do with money just passes me by, but if anyone else cares to read it and deem it useful or rubbish, here it is 
All you need to know about Modelo 720 - Madrid Metropolitan


----------



## Williams2 (Sep 15, 2013)

I often wonder why people dubb the Modelo 720 form - the dreaded Modelo 720 declaration, as
the declaration itself is painless.

If there's anything dreaded about it - it only occurs if it works out that you have extra taxes
to pay on your Renta, as a consequence of your 720 declaration.

But there's rarely any 'The dreaded Renta 2017' or any other year for that matter, as it's always
The Renta where the penny drops that - whoops I took a hit on The Renta !!


----------



## snikpoh (Nov 19, 2007)

Williams2 said:


> I often wonder why people dubb the Modelo 720 form - the dreaded Modelo 720 declaration, as
> the declaration itself is painless.
> 
> If there's anything dreaded about it - it only occurs if it works out that you have extra taxes
> ...


And even then the tax SHOULD have been being paid anyway so really nothing to do with the 720 at all. That's just another way for the authorities to check that one is paying any tax due.


----------

