Modelo 720 in Spain: What Irish Residents Must Declare About Assets Back Home
Modelo 720 wasn't abolished — only the old fines were struck down in 2022. Here's what Irish residents in Spain actually have to declare about assets back home, and by when.
This is not tax advice. The thresholds and figures below are verified against official Spanish sources at the time of publication, but your personal situation changes everything. Speak to an Irish accountant and a Spanish gestor before making any decision based on this article.
Modelo 720 wasn't abolished, and it applies to Irish nationals exactly the same as anyone else. Once you become a Spanish tax resident, you must declare — not pay tax on, just declare — assets held outside Spain once any one category passes 50,000€: bank accounts, investments and pensions, or property. The obligation is real; what changed in 2022 was the size of the penalty for getting it wrong.
What Modelo 720 actually is
It's an information return, not a tax bill. Once you become a Spanish tax resident, you must declare assets held outside Spain — the AIB or Bank of Ireland savings account, the ARF or PRSA pension pot, the family home you kept in Cork or Galway — if any single category crosses 50,000€. There's nothing to pay simply for filing it; it exists so the Agencia Tributaria knows what you hold abroad.
The 50,000€ threshold — three separate boxes, never combined
This is where people trip up. The threshold applies separately to three categories, not to your total foreign wealth:
- Bank accounts held outside Spain.
- Securities, shares, insurance policies, investment funds and pension entitlements held outside Spain.
- Real estate located outside Spain.
Cross 50,000€ in any one category and you declare that category. A 40,000€ Irish savings account and a 45,000€ ARF don't trigger anything on their own, because neither category alone reaches the threshold — they're never added together.
- 50,000€ — threshold per category (accounts / securities and pensions / real estate), assessed separately. Source: Agencia Tributaria.
- 1 January – 31 March — filing window each year, for what you held as of 31 December of the year before. Source: Agencia Tributaria.
- €20 per omitted item, €300–€20,000 per category — the current penalty range if you get it wrong, under the general tax regime since 2022. Source: Ley 5/2022.
Ready for step one?
Prices are set by the developer and rise as construction progresses — today's price is the lowest.
So why does everyone say it was abolished?
Because something real did happen — just not what people think. In January 2022, the EU Court of Justice ruled that Spain's original penalty regime for Modelo 720 was disproportionate: fixed fines of 5,000€ per error, and a 150% surcharge treating undeclared assets as an "unjustified capital gain" with no time limit on when Spain could come after you. Spain scrapped that regime the same year. What replaced it is the general tax penalty framework — real, but nowhere near as punishing. The form itself, and the obligation to file it, never went anywhere.
What about assets you already owned before moving to Spain
This is the part that actually matters for most Irish buyers who eventually settle here: your Irish savings, pension pots and investments existed long before you became a Spanish tax resident. A 2022 Spanish Supreme Court ruling set the statute of limitations for reclassifying undeclared foreign assets as an "unjustified gain" at the standard 4 years — it's no longer indefinite. Assets you can document as acquired before your Spanish residency began generally sit outside that recharacterisation risk, provided you can show the acquisition date. Keep the paperwork.
Before you file anything:
- Work out your exact Spanish tax residency date with an Irish accountant — the obligation starts from there, not from when you bought a property.
- Have a Spanish gestor check each category against the 50,000€ threshold individually.
- Keep dated records of Irish accounts, ARF/PRSA statements and investments opened before you moved — proof of timing is what protects you.
- Don't wait until March: gathering Irish statements and valuations takes longer than people expect.
What Legado does isn't tax advice — it's making sure the purchase itself goes smoothly: an independent lawyer who works for you, not the developer, and the NIE and paperwork checklist non-residents need before they even get to residency questions. This is the second article in a short series on Spanish tax for Irish buyers — the wealth tax piece covers what changes if you own above a much higher threshold, and the third piece covers what renting out or selling the property costs between Ireland and Spain.
Frequently asked questions
Was Modelo 720 abolished?
No. Only the old, disproportionate penalty regime was struck down by the EU Court of Justice in 2022. The obligation to declare foreign assets remains fully in force.
What has to be declared?
Foreign bank accounts, securities/investments/pensions, and real estate — each assessed separately against the 50,000€ threshold, never combined into a single total.
What is the deadline?
1 January to 31 March each year, covering what you held as of 31 December of the previous year.
What happens if I do not declare?
Fixed penalties under the general tax regime since 2022: around 20€ per omitted item, with a minimum of 300€ and a maximum of 20,000€ per category — far lower than the old regime, but still real.
Does this apply to assets I owned before moving to Spain?
Yes, they still have to be declared once you become a Spanish tax resident. But a 2022 Supreme Court ruling set a standard 4-year statute of limitations on reclassifying undeclared assets as an unjustified gain, and assets you can prove you already owned before your residency began generally fall outside that risk.
Free guide for foreign buyers
NIE, taxes, non-resident mortgages and the mistakes that cost buyers the most. We'll email it to you.
Ready to look at real properties?
Use what you've just read as a filter — and browse with better criteria.
