Modelo 720
The Modelo 720 is an informative declaration — you do not pay a single euro with it — that requires Spanish tax residents to report their foreign assets to the tax authority once certain thresholds are exceeded. For investors using foreign brokers it is the number-one obligation to keep on the radar.
When you are required to file
There are three independent blocks, each with its own €50,000 threshold as of December 31:
| Block | What it includes |
|---|---|
| Accounts | Balances at foreign banks and payment institutions |
| Securities and rights | Stocks, funds and ETFs held at foreign entities |
| Real estate | Property outside Spain |
If a block exceeds €50,000, you declare that entire block (the others only if they also exceed it). In later years you only file again if the block grows by more than €20,000 since your last declaration, or if you close declared positions.
Who it affects in practice
Any client of brokers with foreign custody: Interactive Brokers (Ireland), Trade Republic (Germany), DEGIRO, Trading 212 or BUX, among others. Spanish custody (MyInvestor, HeyTrade) does not count towards the 720 — one of its convenience advantages. The full tax-fit comparison is in our brokers section.
Deadline and penalties
It is filed between January 1 and March 31 of the following year. The original disproportionate penalty regime (fines that could exceed the undeclared value) was struck down by the EU Court of Justice in 2022; since then the general penalty regime applies. Smaller penalties do not make it optional: filing late or not filing still carries fines.
What the 720 is not
It is not a tax on your portfolio, and having a foreign broker does not mean paying extra: it is information only. The actual taxes — on dividends with their withholding at source and on capital gains — go in your regular tax return, exactly as with a Spanish broker.
Frequently asked questions
Do I pay anything with the Modelo 720?+
No: it is purely informative. What you pay are the usual taxes (dividends, capital gains) in your income tax return; the 720 only reports that the assets exist.
With which brokers do I need to file it?+
With foreign-custody brokers (Interactive Brokers, Trade Republic, DEGIRO, Trading 212, BUX…) if your holdings there exceed €50,000 on December 31. With Spanish custody it does not apply.
What if I am below €50,000?+
You have no obligation to file. It pays to check your portfolio value at each year-end: the day you cross the threshold, the obligation arises for that year.