Digital Nomads in Spain: Are You Forgetting to Declare Your Foreign Assets?
- Servando Espanol
- 2 jun
- 2 Min. de lectura
If you're an expat freelancer living in Spain and you own assets abroad worth more than €50,000, you may be legally required to file the Modelo 720, and many digital nomads forget it. The consequences of not declaring can be serious, even if the asset is totally legal and acquired before moving to Spain.
Let’s break down what this form is, who needs to file it, and why it matters.
What Is Modelo 720?
Modelo 720 is an informational form used by the Spanish tax authorities to monitor foreign assets held by Spanish tax residents. It’s not a tax in itself, you’re just reporting, not paying. But failing to report can result in heavy fines.
You're expected to report three categories of foreign assets if their combined value exceeds €50,000:
Bank accounts
Real estate
Shares, stocks, pensions, or crypto (in some cases)
Once you file it for the first time, you only need to update it if the value increases by more than €20,000 in any category or you sell or close an account.
Why Many Freelancers and Digital Nomads Miss This
Most international freelancers and digital nomads living in Spain are not trying to hide anything, they simply:
Don’t know about the obligation
Don’t consider themselves “tax residents” (even if they legally are)
Have foreign bank accounts, stock portfolios, or rental properties they forget to declare
Use a gestoría that focuses on locals
Are You a Tax Resident in Spain?
If you’re spending more than 183 days in Spain per calendar year, even with a digital nomad visa, then you are considered a tax resident. That means the Spanish tax authorities expect you to declare your global income and assets. Not just what you earn from clients in Spain.
What Happens If You Don't File?
While penalties were ruled excessive by the European Court of Justice and have been adjusted, failure to submit Modelo 720 can still result in:
Hefty fines
Presumption of unjustified capital gains
Scrutiny in future tax reviews
Even if you didn’t intend to hide anything, Spain’s tax authority doesn’t treat ignorance as a valid excuse.
How to File It (and When)
Deadline: March 31st each year, covering the previous tax year.
Where: It’s submitted online via the Spanish Tax Agency (Agencia Tributaria) platform.
How: Many expats work with a tax advisor in Spain or a gestoría that specializes in expat accounting.
Real Talk: It’s Not About Being Rich
We’ve seen clients surprised to learn that their Payoneer balance, US retirement plan, or apartment in London qualifies for Modelo 720. You don’t need to be wealthy, just to have foreign assets that add up.
If you’re working remotely from Spain, it’s worth taking this seriously.
Final Thoughts
Many expat freelancers think their foreign assets are “none of Spain’s business”, but if you live here, they are. And while filing Modelo 720 may seem annoying, it’s better than the alternative: high fines and a tax audit.
If you're not sure whether you should be filing, speak to an English-speaking accountant in Spain who understands tax solutions for digital nomads. You don’t need to figure this out alone.
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