Update on Modelo 720
 

For those that it affects (or are interested in it) - here is an update from The EU Commission and their ongoing battle with Spain regarding the punitive fines in place for non compliance with the modelo 720 overseas assets declaration legislation. It would appear The Commission have lost patience with their demands being ignored and have decided to take Spain to court....

European Commission - PRESS RELEASES - Press release - Taxation: Commission refers Spain to the Court for imposing disproportionate sanctions for failure to report assets held abroad

Re: Update on Modelo 720
 

Yes, and at the same time the EU tells Spain to get its financial act together, collect taxes and balance the books.

As I had it explained to me by a Spaniard the 720 was introduced to try and track the millions that was taken out of the country in the boom years mainly by Spanish builders and the like.

Also many millions of 'black' pesetas were laundered by acquiring assets abroad with the intention of later selling for Euros - this system was used by many all around Europe prior to the arrival of the Euro.

I know many Brits find this a pain but it was aimed at other targets.