Tax Form 720 Asset declaration

Information and questions about the Law in Spain and Andalucia.
Miro
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Re: Tax Form 720 Asset declaration

Postby Miro » Thu Jul 03, 2014 6:59 pm

Gasman wrote: it is Andalucía trying it on as regards the "Wealth" tax. Our Gestor has tackled the relevant tax office directly for us and it seems, like in Lavanda's case, they have to do a selection of 720 form-fillers :angel: and in this case, ask them to prove that they do not have to pay Wealth Tax - Impuestos sobre "Patrimoniales" ...


I seem to remember, somewhere early on in this thread, suggesting that the 720 seemed to me to be in some way related to wealth tax, and wondering what the real objective of it was. Perhaps we're going to find out...
Don't worry about what people think, they don't do it very often

"Acquiring a dog may be the only opportunity a human ever has to choose a relative," Mordecai Siegal 1935-2010.

El Cid
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Re: Tax Form 720 Asset declaration

Postby El Cid » Thu Jul 03, 2014 7:07 pm

Of course it is related to wealth tax, but only if you declare offshore assets that you haven't already declared in your wealth tax declaration.

When the wealth tax was reintroduced recently, the allowances are higher than the wealth of most expats that I know and as a result they are not obliged to make a wealth tax declaration. You need to be worth nearly €2 million as a couple to make a wealth tax declaration.

Sid

Miro
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Re: Tax Form 720 Asset declaration

Postby Miro » Fri Jul 04, 2014 8:33 am

Slightly off thread, but a little light amusement: there's a lovely letter in this week's EWN, which I can't copy & paste here because it's only in the online print version, but you can read it on Page 66 here: https://www.euroweeklynews.com/e-papers/costa-del-sol/item/121386-costa-del-sol-3-9-july-2014-issue-1513 Titled "Taxing Ordeal".
Ah, bless! The poor, dimwitted innocent soul.
You'd think a responsible ex-pat newspaper like the EWN would, rather than embarrass and humiliate such fools by publishing their silly rants, would reply to them, & politely point out their errors and explain how the real world actually functions!
Don't worry about what people think, they don't do it very often

"Acquiring a dog may be the only opportunity a human ever has to choose a relative," Mordecai Siegal 1935-2010.

Lavanda
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Re: Tax Form 720 Asset declaration

Postby Lavanda » Fri Jul 04, 2014 11:04 am

We had to provide copies of the 2011 Renta and the 720, Gasman. Every year we are asked whether we had bought or sold houses or cars — as if that's something one does as if buying apples, I suppose. :lol:

Lavanda
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Re: Tax Form 720 Asset declaration

Postby Lavanda » Fri Jul 04, 2014 11:16 am

It took me a while to find out how to find page 66 easily, Miro, but it's a sweet little letter from a person for whom it seems tax matters in any country are confusing. :?

infoseeker
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Re: Tax Form 720 Asset declaration

Postby infoseeker » Fri Jul 04, 2014 2:47 pm

Miro wrote:Slightly off thread, but a little light amusement: there's a lovely letter in this week's EWN, which I can't copy & paste here because it's only in the online print version, but you can read it on Page 66 here: https://www.euroweeklynews.com/e-papers/costa-del-sol/item/121386-costa-del-sol-3-9-july-2014-issue-1513 Titled "Taxing Ordeal".
Ah, bless! The poor, dimwitted innocent soul.
You'd think a responsible ex-pat newspaper like the EWN would, rather than embarrass and humiliate such fools by publishing their silly rants, would reply to them, & politely point out their errors and explain how the real world actually functions!

On the letters page of the Costa Blanca News, there is a another gem, showing how let down some are by "experts!"

Gasman
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Re: Tax Form 720 Asset declaration

Postby Gasman » Fri Jul 18, 2014 6:05 pm

Sorry - been away and only just seen follow ups in this thread. We are WELL below the wealth tax bracket however you calculate it and therefore have never previously filled in a wealth tax declaration in Spain ... this is just Andalucía probing ... though I am sure they could have tried it with more likely looking candidates. Anyway, the gestor has done the form and the calculation and taken it to the Junta tax office with a 0 valuation --- so we are now awaiting the bill from the Gestor to see how much Andalucias little ploy has COST US :crazy:

Rosie111
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Re: Tax Form 720 Asset declaration

Postby Rosie111 » Tue Oct 21, 2014 7:30 pm

Can you help me?

I would like to fill in the 720 form by downloading it to my computer. By using "guardar declaracion" I am able to download the file but none of the programmes on my Mac computer will open the file (eg Pages, Text Edit)).

What programme do I need to be able to gain access to the form so I can complete it offline?

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Enrique
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Re: Tax Form 720 Asset declaration

Postby Enrique » Tue Oct 21, 2014 7:49 pm

Hi Rosie111,

Do you have java enabled on your Browser........ :?: Site Avisos

According to the FAQ's you need a Digital Signature.

Cid or Beach will be along to help out......... :D
UNIX is basically a simple operating system, but you have to be a genius to understand the simplicity.

El Cid
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Re: Tax Form 720 Asset declaration

Postby El Cid » Tue Oct 21, 2014 9:42 pm

You cannot download a form. You have to complete the details online and then submit it online, using a digital signature.

If you want to print a copy of the completed form, it is probably a PDF file, like it is for the income tax declaration, in which case you would use Preview on the Mac.

Sid

CapnBilly
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Re: Tax Form 720 Asset declaration

Postby CapnBilly » Tue Oct 21, 2014 11:38 pm

IIRC you can save a draft of the form onto your PC, which U.S. "Guardar" option, so you don't have to complete it all at the same time. This is probably the file you downloaded although it would be an empty shell. The file name is yournienumber.720 and if can view it in Dropbox, although it's just like a text file. You then upload this back the next time you log in, and then submit as described by Sid, and save your PDF file.

MikeNew
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Re: Tax Form 720 Asset declaration

Postby MikeNew » Sun Jan 11, 2015 6:46 pm

Can someone explain the apparent requirement to submit the original purchase cost of UK houses on the 720? We became tax resident in Spain last year (2014) and I don't understand why if I give the original cost of houses paid maybe 20 years ago why Spain should be able to tax me on the gain made for the years I have not been a Spanish tax resident.

I fully understand that Spain should be able to levy CG tax on the increase in value of my assets since I became tax resident but to backdate any liability for 19 years prior to that is downright criminal!

Any guidance gratefully received!

El Cid
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Re: Tax Form 720 Asset declaration

Postby El Cid » Sun Jan 11, 2015 7:21 pm

The asset declaration has nothing directly to do with any tax.

At some time in the future, if you were Spanish tax resident and made a gain on the sale of a UK property, then you might be liable for CGT. in Spain. The way that tax would be calculated is pretty complex and I would not worry about it at this stage.

Even if you had not completed the Form 720 you would still be potentially liable for tax.

The reason you have to declare the original purchase price is because that is the only figure that is a real figure. Today's price is irrelevant until you sell it. Any figure you might give for the current price is just your opinion, not a fact.

Sid

Kent51
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Re: Tax Form 720 Asset declaration

Postby Kent51 » Thu Jan 22, 2015 4:29 pm

A little help please, I have read through this topic from beginning to end (mind now totally numb!) I have also read through the faq, but I am still unsure on one point with regard to annuity valuation. When doing the calculation do you take the age you were when the annuity commenced, or your age at 31st December 2014, e.g. I was 56 (33%) when my annuity commenced and 64 (25%) on 31st 2014, so do I take 33% or 25% of the value.

I have also looked on the Bank of Spain website but can't find what the £/€ exchange rate was on 31st December, could someone please advise.

Many thanks and apologies if I'm being thick!

Lavanda
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Re: Tax Form 720 Asset declaration

Postby Lavanda » Fri Jan 23, 2015 9:08 am

No you are not being thick. The 720 is a particularly dense thing to understand. Sid will surely tell you what you need to know. I did know but have forgotten most of it because it's not something that I do every week .... and my brain can only hold so much ...

Beachcomber
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Re: Tax Form 720 Asset declaration

Postby Beachcomber » Fri Jan 23, 2015 9:13 am

The ECB exchange rate for the 31st December 2014 was 1,2839:

https://www.ecb.europa.eu/stats/exchange/eurofxref/html/eurofxref-graph-gbp.en.html

As well as reading this thread have you also read Sid's FAQ on the subject?

http://www.andalucia.com/forums/viewtopic.php?f=42&t=30699

Kent51
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Re: Tax Form 720 Asset declaration

Postby Kent51 » Fri Jan 23, 2015 10:02 am

Yes I have read the FAQ, and that's where my question comes from, is the total figure discounted by the percentage relative to the age of the person when the annuity was originally taken, or the percentage relative to the age at 31/12/2014?

Maybe El Cid could clarify for me.

El Cid
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Re: Tax Form 720 Asset declaration

Postby El Cid » Fri Jan 23, 2015 10:30 am

The current notional value of your annuity is based on your age at the end of the year in question, not the age that you took it.

The logic is that every year that passes is one less year you are going to live so the value of the annuity reduces every year.

Sid

Kent51
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Re: Tax Form 720 Asset declaration

Postby Kent51 » Fri Jan 23, 2015 3:41 pm

Many thanks for the clarification El Cid. Happily that means no requirement to complete the Form 720!

MikeNew
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Re: Tax Form 720 Asset declaration

Postby MikeNew » Tue Mar 17, 2015 10:36 am

How does one arrive at the value of an annuity that has not yet commenced payment?

For example I have a small annuity that was purchased years ago when the company I worked for went belly-up. I am 63 and the payments (approx. £4000 per annum) are due to commence when I am 65.


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