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V0538-17 2 March 2017 · SG de Tributos Criterion in force
IRPF · modelo 720

Model 720 required if foreign property ownership or beneficial ownership is retained

A taxpayer asks whether Model 720 must be filed for a property in Lisbon with no change in value after renouncing ownership and income to a partner. The DGT responds that the obligation continues as long as ownership or beneficial ownership is maintained.

The question raised

Question posed: Must informative return Form 720 regarding said real estate for the 2016 fiscal year be filed if there has been no variation in the value of the property?

The DGT's ruling

The obligation to file the informative return on real estate held abroad remains as long as the subject is the owner or beneficial owner of the asset. Filing in successive years is only mandatory if the aggregate value experiences an increase exceeding 20,000 euros compared to the last return. Notwithstanding, it shall always be mandatory if ownership has been lost at any time during the year.

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