British Expats - Question Re 720

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- - Question Re 720 (https://britishexpats.com/forum/spain-75/question-re-720-a-921266/)

bobd22

Jan 21st 2019 5:12 am

Question Re 720

Quick question re 720. I became resident from 8 January this year 2019. So will become fiscal (tax resident from July 2019. I thought I should declare for 720 by March 2020 and for tax by June 2020. However speaking with a gestor they say that I must declare for 720 by end of this March 2019?

bobd22

Jan 23rd 2019 5:58 am

Re: Question Re 720

Can anyone confirm for me that I only need to submit 720 after I have completed my 183 days which makes me tax resident?

Fred James

Jan 23rd 2019 9:04 am

Re: Question Re 720

Bearing in mind that the asset declaration would be for assets held on 31 December 2018, when you were not resident, I cannot see any reason why you should declare your assets until March 2020 based on their value on 31 December 2019.

spainrico

Jan 23rd 2019 6:49 pm

Re: Question Re 720

Agree with Fred. I don't think the gestor knows his stuff or he wants to make money from you. Time for a change?

bobd22

Jan 23rd 2019 7:57 pm

Re: Question Re 720

Thanks for the comments which are exactly as I thought.

chrisjolly

Jan 24th 2019 2:00 am

Re: Question Re 720

Quote:

Originally Posted by bobd22 (Post 12625061)

The tax year in Spain is January to January and Form 720 is to let Hacienda know your world wide wealth. You only need to do that the first time the year after you want to become tax resident. If your circumstances change after you also need to inform them eg if you sell a house. You can make the declaration in January. May is the month to declare yearly income and July is when you pay your tax.

bobd22

Jan 24th 2019 2:33 am

Re: Question Re 720

Thanks Chris

1sexsmith

Jan 24th 2019 3:23 am

Re: Question Re 720

If you cash in premium bonds that you declared on your 720 do you need to do another declaration when you cash them in and your wealth is less?

Loafing Along

Jan 24th 2019 5:47 am

Re: Question Re 720

Quote:

Originally Posted by 1sexsmith (Post 12626671)

If you cash in premium bonds that you declared on your 720 do you need to do another declaration when you cash them in and your wealth is less?

If the declared wealth drops by more than â‚¬20,000,- you have to make a new declaration showing the change

snikpoh

Jan 25th 2019 2:03 am

Re: Question Re 720

Quote:

Originally Posted by Loafing Along (Post 12626737)

If the declared wealth drops by more than â‚¬20,000,- you have to make a new declaration showing the change

That's what I understood but some lawyers disagree.

Fred James

Jan 25th 2019 3:11 am

Re: Question Re 720

From the guidance on the web, from various sources, the opinion seems to be that an increase of â‚¬20000 in one asset group has to be declared but a drop in value does not unless the asset is sold or becomes extinct.

bobd22

Jan 25th 2019 5:24 am

Re: Question Re 720

Quote:

Originally Posted by Fred James (Post 12627159)

Thats how I have always read it.

Patrick2976

Jan 27th 2019 8:05 am

Re: Question Re 720

I would also be careful about the accountant you use. One mistake with the detail in the declaration can lead to significant problems with Hacienda who are rather unforgiving and quick to hand out heavy fines - a bilingual accountant used to dealing with Brits may be a good idea IMO.

spainrico

Jan 29th 2019 5:39 am

Re: Question Re 720

For further info

https://www.pellicerheredia.com/en/a...=blog_25012019

bobd22

Jan 29th 2019 8:31 am

Re: Question Re 720

Thanks for that it does clearly state for those that are fiscal residents not merely those that have obtained residencia.

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