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V1343-18 23 May 2018 · SG de Tributos Criterion in force
OTRO · modelo 720

Obligation to file Model 720 for foreign shares exceeding €50,000

A Spanish resident asks whether they must declare physical shares in a British company held in their possession. The tax authority responds that shares representing a foreign entity with a value exceeding €50,000 are subject to information reporting obligations.

The question raised

Question posed: Obligation to submit the informative declaration on assets and rights located abroad.

The DGT's ruling

Shares representing participation in a legal entity located abroad must be reported via the annual declaration if their value exceeds 50,000 euros. Although physical certificates may be held at the holder's domicile, the fact that control of the shares is exercised by an entity abroad determines that they are assets located abroad. Therefore, Form 720 must be submitted pursuant to Article 42 ter of the RGAT.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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