LEYTON LAW FIRM would like to remind our clients that the deadline for the ANNUAL INFORMATION STATEMENT ON GOODS AND RIGHTS situated abroad , Model 720, for the year 2016 ends on March 31, 2017.

Natural and legal persons resident in Spanish territory, permanent establishments in that territory of persons or entities and non-resident entities from Article 35.4 of the LGT (recumbent inheritance, community property, etc.) must supply the tax administrations, except in certain cases or exemptions, the following information:

1. Information on accounts located abroadopened in entities engaged in banking credit or are holders or beneficiaries or those listed as authorized or otherwise to dispose bearing.
2. Information on securities or rights representing participation in the capital or equityof any type of legal entity, of securities representing the transfer to third parties of capital , on provided for management or administration values any legal instrument , including trusts and “trusts” or pools of assets that, despite lacking legal personality can act in trade, and stocks and shares in the equity or equity fund of collective investment they hold and are deposited or located abroad, as well as life insurance or disability of those who are takers and life or temporary income of which they are beneficiaries as a result of the delivery of a capital in money, real or personal property, contract with entities established abroad.
3. Information on real estate and real property rights of ownership located abroad.

These obligations extend to those who are deemed to be beneficial owners according to the Law 10/2010 art.4.2 prevention of money laundering and terrorist financing.

There shall be no obligation to report any account balances as at 31 December  not exceed jointly the 50,000 €, and the same circumstance concurs in relation to average balances in the last quarter. This quantitative limit also applies to the cases referred to in paragraph b) and c).

The presentation of the statement in subsequent years will only be mandatory when either set at December 31, or the average balance had experienced an increase of over 20,000 € for which determined the submission of the final statement. This quantitative limit also applies to the values of paragraph b) and c).

The legislation establishes a system of offenses and penalties, with fines pecuniary relating to failure to follow these reporting obligations. For example, the minimum sanction for the failure to submit the model with respect to one of the three reporting obligations would be € 10,000.

In addition, it establishes a penalty proportionate pecuniary of 150% of the share resulting from regularizing unjustified capital gains (income or IS), to bring cause defaults on the obligation of information on goods and rights located abroad.