It's that 720 time again!

Looking at various forums and info sites, it seems that there are more than just Three categories ; some list insurance policies  and annuities as a separate category; if so this could make a considerable difference as to whether a 720 has to be submitted , as if they are included in the investments category, along with other assets they could add up to more than 50 k, whereas if they  are in a separate category , then a small annuity of less than 50 k would not have to be included.

The Brussels Declaration, called EU Pilot 5652/13 / TAXU, concluded that the law governing 720 tax declaration infringed Community law in two aspects: the penalty system as non proportionate and its applicability as sanctions possibilities do not expire.  

Brussels has expressly stated that "intends to deepen this aspect of research and propose the opening of an infringement procedure"

Is there an english translation available of the statute to see what exactly the rules are?

In a colleagues case she bought a house 20 years ago for 20.000 pounds and it is now worth 150.000. As i understand it she does not have to declare but am I correct? and if she does have to declare what would happen if she declares now?

There are several other ex-pats in my company (language school) who are similarly confused about their pensions, property etc.. and are now scared to declare because they fear the penalties.

From Camposol there should be a provision in the other direction that property purchased which is now below half the purchase price could be used in mitigation of assets.

The modelo 720 is a declaration of foreign assets. Be a bit silly sticking a property in Camposol on that list.

And you don't get taxed on those assets, anyway. Only profits you make from those assets like interest and rental income etc.

Just because you declare your assets on form 720 does not necessarily mean you will be taxed on them. The form is simply designed to inform the Hacienda you hold such assets. Of course your income declaration needs to reflect what income these assets actually produce if any.

I know that if any asset class increases my more than 25K then we should make a new revised declaration. But Another issue with the Modelo 720 which is not clear is should you make a new declaration if for example when a Bond has matured and ended (spent the proceeds) ie assets decreased . Surely the Hacienda does not expect us to pay a gestor /assessoria to submit an amended 720 to declare an asset  no longer exists. They can hardly fine us for non declaration of something that no longer exists.?? Anyone got a take on this?

My thoughts on the assets decreased situation are simply keep ALL paperwork relating to it's disposal, dates etc., and not bother to declare it's closure. If at some future date, or if as I believe, governments get their departments together, any questions asked by them can be suitably dealt with. I must say however, that should you change an account number due to a revised investment of an 'old' asset (in the same company) then the details can be given by 'normal' declaration when we make our annual returns. This I think should surely satisfy the Hacienda. If you find an honest Gestor then you could ask for their opinion, but not forgetting they are always looking for business.

With regard to increases 20k (I think,) if you have a joint account the figure of 20k applies for both of you, not each. 

Swinb

Your case is a great example of why the Spanish introduced this requirement. Im assuming you are a tax resident otherwise you wouldn't of filed a 720. No matter what the tax status for your maturing bond was in the UK, here in Spain I'm pretty sure it would be classed as unearned income and tax would be payable on it at your marginal rate. 

Yes, you have to make a new 720 if you dispose of an asset, Its to late this year as it needed to be filed by the end of March for the financial year ending 31st Dec 2014 - had you of filed it, the tax office would of been looking to see the proceeds accounted for on your annual tax return due in the May/June. Maybe your bond didn't mature until 2015

Sorry, that's my take, maybe you should get professional advice

Nels- the 20 k increase is for EACH of you, not both, and remember the exchange rate may tip you over

owenant- you only declare the  price of the property when you aquired it it, even if it is worth well over the limit now .

not logical in my opinion, as other assets have to be valued as at 31st December of the year before.

if people are confused why not go to an accountant or ask financial advisors such as  Blevins Franks.

There has been so much info on this that no one needs to be ignorant these days, and it is silly just to do nothing.