Number of Mortgages Granted Rises 34% Annually
July Closes with Very High Temperatures in the Alicante Province
Multimillionaire Russian Anchors on the Javea-Denia Coast
Properties Now Sell 50% Faster on the Costa del Sol Than in 2015
Spanish Startup Creates Blue Wine
Longest Water Slide in Europe in Madrid This Sunday Only
UK Garage Music DJ and Producer Wookie on the Costa Blanca This Saturday
Madrid Campaigns in London to Bring the City to Spain’s Capital
Gas Bottle Price Drops to Minimum Level
32 Provinces on Orange Alert for High Temperatures Today
British Consulate Organises Informal Talk on Brexit Tomorrow in Alicante
Julian Marley & Uprising Perform at Mar de Músicas Festival Inauguration in Cartagena Tonight
Great Places to Visit This Summer
McDonald’s in Spain to Use 100% Spanish Beef from Now On
Posted by Phil Murray on November 15, 2013
Some fiscal residents in Spain may have committed fraud unwittingly
  • Asset abroad declarations for 2014 must be submitted by 31 March
  • Hacienda has used information collected to investigate and prosecute against tax fraud offences
  • Tax havens are no longer safe, and neither are safes!

For many of Spain’s fiscal residents, making a declaration informing the tax office of their assets (valued at 50,000 euro or more) abroad for the Model 720 was carried out this year. That means that they will not be required to make another declaration for a second year, that is unless their asset(s) increases in wealth or profit by 20,000 euro.

For this year’s exercise, declarations had to be submitted by 31 April. To make a declaration for the coming year, fiscal residents have until 31 March.

Government statistics revealed that a total of 131,411 asset declarations were submitted this year, the majority by private individuals – all declaring some type of asset held abroad worth more than 50,000 euro.

From this exercise, a total of 87,698 million euro worth of assets was declared.

Tax officials have praised the quality of information obtained through the Model 720.

From the 87,698 million euro declared in assets abroad, the following was uncovered:

  • 44,817 million euro of stocks and shares
  • 14,565 million euro of bank accounts
  • 16,943 million euro of shares in large institutions
  • 8,974 million euro of property

Hacienda, Spain’s tax office, has also come across debit and credit cards emitted abroad but which are used to make payments in Spain.

Hacienda inspectors have warned that 50% of taxpayers that are being investigated by ONIF (National Office of Fraud Investigation) are at risk of committing fraud, whether knowingly or unknowingly.

Offences include:

  • Not declaring assets owned abroad
  • Companies with offices everywhere but that in all actuality should pay tax in Spain
  • Paying a lesser amount of tax than should be obliged to pay
  • Companies that don’t declare all work carried out
  • Companies that deduct false expenses
  • Bank deposits that are completely unrelated to earnings declared
  • Bank accounts not declared in the 720 Model (over 50,000 euro)
  • Undeclared properties with a high catastral value used by tax residents, but which are the property of entities with accounts in a tax haven
  • Accepting more than 2,500 in cash for payments of goods or services, or making these payments

Measures are being taken to stop this kind of fraud, and although Hacienda claimed that the 720 Model would be a purely informative exercise; it isn’t.

Last month, Hacienda officials stormed numerous branches of several banks and demanded to remove a total of 542 safes belonging to taxpayers with huge unpaid tax bills.

The fraudsters have been alerted and asked to settle their tax bill otherwise the safety deposit box belonging to them will be opened by tax office officials. The contents of the safes could open up a whole new case of tax dodging to be investigated, and if fraud has been committed, a prison sentence could even be sanctioned (if the fraud is over 120,000 euro).



  • Spain
  • Model 720
  • tax fraud
  • Hacienda
  • assets abroad
  • declaration of assets abroad


leftOn The Pulse is a leading website dedicated to researching and reporting up-to-date information about Spanish property, legislation and the economy