Emigrate to Spain: assets from Argentina and the risks of undeclaration

In recent years, many Argentines have decided to emigrate to Europe, especially Spain, in search of better labor opportunities and economic stability. Moving to another country brings with it many challenges, as it requires a huge amount of reflection on migration procedures, options for living abroad, choice of educational institutions for children and health care system for the whole family, etc. However, there is another fundamental aspect that must be taken seriously, namely the tax situation "when leaving" Argentina, which many people are not aware of.

In Spain there is an obligation to declare all assets in excess of €50,000 held abroad. This applies to all persons residing in Spain, regardless of their nationality.

What happens if you do not declare the assets you have in Argentina? In 2012, the Spanish government introduced Sample 720, an information statement on assets and rights held abroad that exceed €50,000. "All tax residents in Spain are required to fill it out based on their property situation as of December 31 of the previous year," explained MBT, a legal agency that specializes in assisting Argentines emigrating to Spain.

However, many who have moved to Europe in recent years, and especially Spain, are unaware that they need to complete this application as it affects their assets in their home country, which often exceed €50,000.

Faced with such a situation, one must evaluate whether to bring the money and pay the fine, or leave it in Argentina and wait until the statute of limitations expires in four years.

If you have not declared your property in Argentina, have sold it and want to transfer the money to Spain, there are complications.

If your assets exceed €50,000, they include: foreign bank accounts, shares in companies, rights, insurances and income earned outside Spain, as well as real estate and real estate rights.

"All tax residents in Spain must file a declaration from January 1 to March 31 based on their assets as of December 31 of the previous year, because if they already had one and have not uploaded it into the system, it will be too late to do so," warned Lucio Bojo, a partner at MBT firm.

You can use the help of the Spanish Tax Service's website during the process of completing the Sample 720. It is currently possible to file the application yourself through this link if you have a digital certificate. However, in some cases you may need the assistance of a property manager or lawyer.

The MBT partner also explained that some clients have questions about when a particular property becomes their property. There are often questions about how to determine the value of a property in Argentina: by past purchase price or current tax value.

In addition, questions arise as to how the situation can be resolved if the time for completing the sample 720 has already expired. In such cases, the decision must be made on a case-by-case basis.

After the initial completion of Form 720, a repeat declaration must only be submitted if the annual increase exceeds 20,000 euros compared to the last declaration.