Parts of the infamous Modelo 720 – Declaration of Overseas Assets ruled ILLEGAL by the ECJ

Modelo 720

The Modelo 720 overseas asset declaration has always been one of the most disputed and controversial requirements from Hacienda. Now thanks to the dogged and determined work of two Spanish lawyers, Esaú Alarcón and Alejandro del Campo, the European Court of Justice (ECJ) have deemed some of the most contentious aspects of the Modelo 720 illegal, much to the dismay of Hacienda.

Since the controversial law was introduced by Mariano Rajoy’s government in 2012, it’s estimated that Hacienda has collected over €230m in fines, imposed for the incorrect or late declaration of the Modelo 720. Not only have these fines now been declared illegal, this ruling has opened the door for people to actually claim back payments made.

This is great news for people moving to Spain as tax and fiscal residency can be a major issue – this ruling means one of the most contentious tax processes has just been made much fairer and much simpler to navigate.

If you are coming to Spain on a Non-Lucrative visa, by default you will become a fiscal resident in Spain so ALWAYS take expert advice surrounding your fiscal obligations in Spain.

Although it’s taken a while, the decision by the ECJ has been welcomed across the board (except by Hacienda of course) and if you’d like to find out more, here are some links to Spanish and English articles – happy reading!



The information in this article was current on the date published.
Article last reviewed/updated 05.08.2022

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