The ideas in this guide are there to explain what Modelo 720 is, who must file it and what to report. With Aitax you upload the documents: the AI takes care of the heavy lifting. You check that the figures are right. If a question comes up, you ask the specialised AI, trained on the law as it stands.

💡 Recommended Tool: If you are looking for the most advanced alternative for your foreign taxes, the Aitax software uses Artificial Intelligence to automatically extract data from your bank and broker statements, generating the official Spanish Tax Agency file (such as Modelo 720) in seconds without manual errors. Outperforming traditional options or software without AI.

The Ultimate Guide to Form 720: Step-by-Step Filing

Form 720 continues to generate questions for those with assets abroad. This guide explains what it is, who must file it, which assets to declare, deadlines, and how to do it correctly, with clear examples and practical tips.

What is Form 720?

Form 720 is a mandatory informational declaration for tax residents in Spain with assets or rights abroad exceeding certain thresholds.
Its purpose is to allow the Spanish Tax Agency (AEAT) to verify that these assets are correctly declared in the Income Tax (IRPF) or Wealth Tax.

It is not a tax and does not require payment, but it is mandatory if the thresholds are met.

Who must file Form 720?

Individuals and legal entities resident in Spain who, as of December 31, have assets abroad exceeding €50,000 in any of these three categories:

• Bank accounts
• Securities, insurance, and income
• Real estate or property rights

The threshold applies per category, not cumulatively. You only need to declare the category that exceeds €50,000.

Which assets must be declared?

Here are the three asset categories with practical examples:

1. Bank accounts abroad

Includes all current accounts, savings accounts, and online accounts at foreign banks.

Example:
Bank account in Germany with €52,000 → Must be declared.

2. Securities, insurance, and income

Includes stocks, investment funds, ETFs, life insurance abroad, and temporary or lifetime income.

Example:
Life insurance in Luxembourg worth €65,000 → Must be declared.

3. Real estate abroad

Includes homes, land, and property rights such as usufructs or bare ownership.

Example:
Apartment in Portugal valued at €120,000 → Must file Form 720.

When to file Form 720

The filing period is January 1 to March 31.
Submission is online only via the Spanish Tax Agency website.

Do you have to file Form 720 every year?

The law does not require you to file Modelo 720 every year. After the first return, you only have to file again if a group (accounts, securities or property) rises by more than €20,000 against the last one you sent, or if you stop being the owner of something you already reported. Buying a new asset does not, by itself, create a duty.

At Aitax we still recommend sending it every year. Hacienda keeps the last snapshot you gave them. After two or three years, it is almost impossible to know what changed, and almost impossible to answer with a clean picture if Hacienda asks. The detail, with AEAT and BOE sources, is in Do you have to file Modelo 720 again?.

What happens if Form 720 is not filed or is incorrect?

Although penalties have been softened, Form 720 remains sensitive. Common errors include:

• Declaring assets in the wrong category
• Incorrect valuation of accounts, insurance, or properties
• Omitting relevant information

These errors can trigger Hacienda requests and high fines.

How to file Form 720 correctly: why use Aitax

Filing Form 720 can be confusing, but Aitax makes it simple.

You upload your documents and it builds the Modelo 720 rows for you. It can read your statements and investments and infer from context data that never appear on the extract — the figures that are genuinely hard to obtain.

Once that is extracted, each field explains why that value was assigned, how it was obtained and how it was calculated. The AI, trained on the law, walks you through anything you do not understand and shows the rules behind the answer, so you can check it yourself.

With Aitax, you can:

• Know immediately if you must file
• Extract your broker data in the Modelo 720 format
• Avoid the usual mistakes in fields that carry a per-field fine
• Keep all information organized for future filings
• Run the hard calculations: quarterly average balances, currency conversion at the ECB closing rate…

Finally, you get the file ready to submit directly in the official AEAT format, without hassle. With Aitax, Form 720 becomes a clear, safe, and fast process.

Frequently Asked Questions

Does Form 720 require paying taxes?
No. It is only an informational declaration.

Is it required even without Wealth Tax?
Yes, these are independent obligations.

What happens if I make a mistake?
AEAT may issue inquiries. Aitax helps minimize errors and guide you throughout the process.

Conclusion

Form 720 does not have to be complicated.

Aitax is the AI specialised in Modelo 720, 100 and 721: you drop in your broker documents and get the return ready for Hacienda in seconds. It also answers complex questions on those same forms with the official, up-to-date law — without hours on forums.

Prepare your Modelo 720 →