Specialized Foreign Assets Regularization and Form 720 Lawyer in Ibiza
At Rodríguez Tur Abogados, we advise tax residents in Spain with assets abroad on compliance with their information and tax obligations. Ibiza hosts a large international community (entrepreneurs, investors, relocated professionals) that frequently maintains bank accounts, real estate, and securities in their countries of origin. Failure to declare these assets can result in penalties and the imputation of unjustified capital gains in Personal Income Tax.
Foreign Assets Regularization Lawyer in Ibiza
The judgment of the Court of Justice of the European Union of January 27, 2022 declared the original sanctioning regime of Form 720 contrary to EU law. Following this judgment, Spain modified the regulations and eliminated disproportionate fixed penalties, but the obligation to declare remains in force and non-compliance can result in serious tax consequences: the Administration may consider undeclared assets as unjustified capital gain and integrate it into the general tax base of Personal Income Tax for the oldest non-barred fiscal year.
Our team helps taxpayers regularize their situation before the Administration acts, minimizing tax costs and avoiding sanctioning procedures.
Foreign Assets Regularization Services in Ibiza
Analysis of Declaration Obligation
We determine whether the client is obliged to file Form 720 based on ownership, balances, and values of their foreign assets. We review the beneficial and legal ownership of accounts, securities, and real estate, identify figures of joint ownership, usufruct, powers of disposition, and indirect ownership through corporate structures that also generate information reporting obligations.
Filing and Regularization of Form 720
If the client has never filed Form 720 or has filed it with incomplete data, we prepare the corresponding declaration or amended declarations. We gather the necessary banking and registration documentation, calculate balances as of December 31 and average balances for the last quarter, and complete the form with the data required by the Tax Agency.
Voluntary Regularization with the Tax Agency
When there are undeclared assets that may generate an imputation of unjustified capital gain, we design a voluntary regularization strategy. We file amended Personal Income Tax returns for the affected fiscal years, prove the lawful origin of the funds, and when possible, demonstrate that the assets were acquired in barred fiscal years to avoid taxation. Voluntary regularization reduces surcharges and eliminates the possibility of penalties.
Proof of Origin and Acquisition Date of Assets
The key to avoiding imputation as unjustified gain lies in proving that the assets were acquired with declared income or in already barred fiscal years. We gather supporting documentation (deeds, contracts, historical bank statements, tax returns in the country of origin) and prepare a solid file that proves the source of each asset.
Coordination with Taxation of Country of Origin
Many clients have already paid taxes on these assets in their countries of origin. We analyze applicable double taxation treaties, verify if there are pending tax credits to apply, and coordinate with local advisors in the country where the assets are located to avoid double taxation and obtain the necessary tax documentation.
Defense in Tax Inspections and Sanctioning Procedures
If the Tax Agency has initiated a verification procedure or inspection related to foreign assets, we represent you throughout the entire process. We submit arguments, provide evidence of the origin of the assets, and challenge assessments or penalties that we consider improper, both in administrative and contentious proceedings.
Don’t Wait Any Longer
Get in touch with our tax lawyers today.
Tell us about your case, and we’ll evaluate the best strategy to regularize your tax situation.
