Modelo 720: What UK Expats in Spain Must Declare
What the Spanish Modelo 720 overseas assets declaration means for British expats – who must file it, what assets to declare, the filing deadline, and the substantial penalties for non-compliance.
By Sarah B. | Updated April 2026 | 7 min read
If you are a Spanish tax resident with overseas assets above €50,000, you are legally required to declare them to the Spanish tax authority using a form called the Modelo 720. Many British expats are unaware of this obligation, and the penalties for non-compliance are severe. This is one area where taking professional tax advice before or shortly after moving to Spain is essential.
What is the Modelo 720?
The Modelo 720 is an informational declaration form submitted to the Spanish Tax Agency (AEAT). It requires Spanish tax residents to declare overseas assets – UK bank accounts, property, investments, pensions and other financial assets held outside Spain – if those assets exceed €50,000 in any single category.
Critically, the Modelo 720 is an information declaration, not a tax payment. Filing it does not in itself mean you pay more tax. But the information you declare feeds into your overall Spanish tax assessment, and failing to declare assets that should be declared carries very significant penalties.
Who must file?
You must file a Modelo 720 if you are a Spanish tax resident and you hold overseas assets in any of the following categories where the total value in that category exceeds €50,000:
- Bank accounts: UK current accounts, savings accounts, ISAs held in overseas banks
- Investments and securities: UK stocks, shares, funds, bonds, investment portfolios
- Real estate: UK property you own
The €50,000 threshold applies per category, not in aggregate. If you have £30,000 in a UK bank account and £30,000 in UK stocks, neither category exceeds €50,000 individually so you would not need to file (subject to exchange rate movements). If your UK property is worth more than €50,000 – which almost all UK property is – you must declare it.
When to file
The Modelo 720 is filed annually between 1 January and 31 March for the previous calendar year. Your first obligation is for the first full year in which you were a Spanish tax resident. You only need to file again in subsequent years if the value of your declared assets increases by more than €20,000, or if you acquire new overseas assets.
Penalties for non-compliance
The Modelo 720 has historically had some of the harshest penalties in European tax law for undeclared assets. Following a 2022 European Court of Justice ruling that found some aspects of Spain’s penalties disproportionate, the penalty regime was revised. However, significant penalties for late filing or non-declaration remain. Fines start at €5,000 per item not declared and can be much higher for deliberate non-compliance.
This is not an area to be casual about. If you move to Spain and have UK assets above the threshold, filing the Modelo 720 correctly and on time is a legal obligation.
Getting help
Given the complexity and the penalty risk, most British expats with significant UK assets use a Spanish tax adviser (asesor fiscal) or specialist expat financial adviser to prepare and file their Modelo 720. The cost is modest compared to the risk of getting it wrong. Advisers like Chase Buchanan and Blevins Franks deal with this as a standard part of their expat financial planning service.
What to read next
- UK Tax Residency vs Spain →
- UK Pension in Spain: Tax Guide →
- Moving to Spain from the UK: Complete 2026 Guide →
This guide is for general information only and does not constitute tax or legal advice. Tax law changes and individual circumstances vary significantly. Always take qualified professional advice. Some links are affiliate links.