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V2911-20 25 September 2020 · SG de Tributos Criterion in force
OTRO · modelo 720

Cash accounts with foreign brokers must be declared in Form 720

A consultant asks whether cash accounts with foreign brokers for CFD and Forex trading must be reported, even if funds are transferred to Spanish accounts or the account is closed before the end of the quarter. The DGT responds that the cash account with a foreign broker is subject to the reporting obligation under Form 720.

The question raised

Question raised

The DGT's ruling

Contracts for Difference (CFD) and FOREX are derivative financial instruments and are not securities or rights subject to Article 42 ter of the RGAT. However, the cash instrument account opened with the foreign broker to manage operations is subject to the reporting obligation via Form 720 pursuant to Article 42 bis of the RGAT. This obligation persists even if the money is transferred to accounts in Spain or if the broker has a delegation in Spanish territory. For the declaration, key 'C' and subkey '5' (other accounts) must be used.

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