Modelo 720 is the Spanish informative return for assets held abroad, and it catches many freelancers by surprise. If you keep money in a foreign bank or a multi-currency account to receive payments from clients, you may need to declare it when the balances pass the threshold.
The short answer: tax residents in Spain must report certain assets abroad when the total value in a category exceeds EUR 50,000: bank accounts, securities and insurance, and real estate. The return is filed once a year between 1 January and 31 March, and again only when a category increases by more than EUR 20,000. Whether an account at a fintech provider counts depends on where the account is held and how it is structured, so check your case.
The rules on foreign-asset reporting have been reformed after a ruling of the European Court of Justice, and the details of penalties, valuation and what counts as a foreign account can change. This guide is general information, not tax advice. Confirm your obligation with a gestor before the deadline.
Key takeaways: modelo 720
- Modelo 720 is an informative return: it does not mean you pay tax on the assets, but you must report them.
- It applies to tax residents in Spain with foreign assets above EUR 50,000 in a category.
- It is filed between 1 January and 31 March for the previous year.
- Whether fintech accounts such as multi-currency accounts count depends on the provider and the account details.
- Missing the return can lead to penalties, although they have been softened after EU case law.
In this guide
- Key takeaways: modelo 720
- What is modelo 720?
- Who must file modelo 720?
- Do multi-currency and fintech accounts count for modelo 720?
- Deadline and how to file
- Penalties and recent changes
- Modelo 720 and your freelance business
- Crypto assets and modelo 721
- Common mistakes to avoid
- Frequently asked questions about modelo 720
- Final thoughts on modelo 720
- Sources and further reading
- Related guides
What is modelo 720?
Modelo 720 is the «declaration of assets and rights held abroad». Spanish tax residents must file it when they hold certain assets outside Spain above a threshold. It is informative: it lets the tax agency know about the assets. The assets themselves are taxed (or not) under the normal income and wealth tax rules; the return does not create a new tax.
Who must file modelo 720?
You must file if you are a tax resident in Spain and, on 31 December, the total value of your assets in any of these categories abroad exceeds EUR 50,000:
| Category | Examples |
|---|---|
| Accounts | Current accounts, savings accounts and deposits with financial institutions abroad |
| Securities, rights and insurance | Shares, funds, investments and life or disability insurance with entities abroad |
| Real estate | Property and rights over property outside Spain |
Each category is measured separately. After the first filing, you file again only if a category increases by more than EUR 20,000 compared with the last declared value. Authorised signatories and beneficiaries may also be affected, not just owners.
Do multi-currency and fintech accounts count for modelo 720?
This is the question most freelancers ask. Accounts at Wise, Revolut, Payoneer or similar providers may have balances held with entities outside Spain, for example in Belgium, Lithuania or another country. Whether they must be declared depends on factors such as the entity that holds the funds, the type of account and your balance on 31 December, and the tax agency’s interpretation has been debated. A practical approach is:
- Check which legal entity provides your account and in which country it is established.
- Download the year-end balance and the highest balance you held during the year if the provider shows it.
- Add the balances of all foreign accounts in the same category.
- If the total approaches or exceeds EUR 50,000, ask a gestor whether you must file.
For account options, see multi-currency accounts for freelancers.
Deadline and how to file
- Deadline: normally 1 January to 31 March, for the assets held on 31 December of the previous year.
- Where: electronically through the Agencia Tributaria, with a digital certificate or other identification system.
- What you need: the account details, the entity’s name and country, the balance on 31 December and, if required, the average balance of the last quarter.
- Value: report the value according to the rules in the instructions, converted to euros.
Penalties and recent changes
The European Court of Justice ruled that the original penalty regime was disproportionate. Spain then reformed the rules so that penalties are more limited, but failing to file, filing late or filing with errors can still lead to a penalty. The legal details have been in flux, so do not rely on an old article for the exact amount. Ask a gestor to confirm the current regime.
Modelo 720 and your freelance business
- Keeping money in a foreign account does not change the taxation of your business income; you still declare it in your quarterly and annual returns.
- If you keep a large balance in a foreign account, check the threshold on 31 December every year.
- Consider transferring surplus balances to a Spanish account before year-end if that fits your needs, and discuss it with a gestor.
- Interest or gains on foreign assets are income that you declare in the annual return.
The general framework is described in taxes for freelancers with foreign clients in Spain.
Crypto assets and modelo 721
Cryptocurrency held abroad is covered by a separate informative return, modelo 721, with its own threshold and rules. If you receive payments in crypto, see how to get paid in crypto as a freelancer and ask your gestor which return applies.
Common mistakes to avoid
- Assuming that fintech accounts never count.
- Checking only the balance on one account instead of the total in the category.
- Forgetting that authorised signatories may have to report.
- Missing the 31 March deadline.
- Not filing again after a large increase.
- Using outdated information about penalties.
Frequently asked questions about modelo 720
What is modelo 720?
It is the Spanish informative return for assets and rights held abroad by tax residents when they exceed certain thresholds.
What is the threshold for modelo 720?
EUR 50,000 in each category on 31 December: accounts, securities and insurance, and real estate.
Do I pay tax because of modelo 720?
No. It is informative. The assets are taxed under the normal rules, for example on the income they generate.
Do Wise or Revolut accounts have to be declared?
It depends on the account structure and the balance. Check the provider’s entity and ask a gestor if your total is near the threshold.
When do I file modelo 720?
Normally between 1 January and 31 March for the previous year.
Is there a separate return for crypto?
Yes, modelo 721 covers cryptocurrencies held abroad.
Final thoughts on modelo 720
Modelo 720 is easy to overlook, but easy to handle once you know the thresholds. Add up your foreign balances in each category on 31 December, check how your fintech accounts are structured and file between January and March when you must. Because the rules and the penalties have changed, confirm your obligation with a gestor before the deadline and keep modelo 720 on your yearly calendar.
Sources and further reading
- Agencia Tributaria: modelo 720
- Boletín Oficial del Estado (BOE)
- Court of Justice of the EU (curia.europa.eu)
Related guides
- Taxes for Freelancers with Foreign Clients in Spain: IRPF and VAT Explained
- Best Multi-Currency Account for Freelancers in Spain and the EU
- How to Get Paid in Crypto as a Freelancer: Stablecoins, Fees and Tax Basics
- Double Taxation: How Freelancers in Spain Avoid Paying Tax Twice on the Same Income
Disclaimer: This article is for general information only and is not tax, legal or financial advice. Rules, fees and thresholds change often and differ by country; always confirm current details with the tax authority and a qualified adviser. Some links may be affiliate links, which means we may earn a commission at no extra cost to you.