{"id":24985,"date":"2024-04-02T09:00:00","date_gmt":"2024-04-02T07:00:00","guid":{"rendered":"https:\/\/www.11onze.cat\/?p=24985"},"modified":"2024-07-16T08:17:19","modified_gmt":"2024-07-16T06:17:19","slug":"how-much-money-have-abroad","status":"publish","type":"post","link":"https:\/\/www.11onze.cat\/en\/magazine\/how-much-money-have-abroad\/","title":{"rendered":"How much money can I have abroad?"},"content":{"rendered":"
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The Court of Justice of the European Union has overturned the rule that obliges you to declare your wealth abroad to the Treasury, because it considers it to be \u201cdisproportionate.\u201d The Spanish government will now have to amend the law. But in the meantime, what exactly does Royal Decree 1065\/2007 require? At 11Onze we summarise the regulations.<\/b><\/h3>\n

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In fact, according to <\/span>Royal Decree<\/span><\/a> 1065\/2007, at present, assets abroad that do not exceed 50,000 euros do not have to be declared. This is specified in article 42 bis, point 4, when it announces that <\/span>\u201cthere is no obligation to report any account when the balances [\u2026] do not exceed, together, 50,000 euros.\u201d<\/b> Even so, in the event of exceeding this amount, all accounts must be reported to the Tax Agency through <\/span>Form 720<\/span><\/a>.<\/span><\/p>\n

This model 720 was introduced in 2012<\/b> when the then finance minister of the Popular Party, Crist\u00f3bal Montoro, decided to pursue foreign assets in order to increase the Spanish state\u2019s revenue during the worst years of the financial crisis. Montoro defended the measure as a \u201cnecessary tax regulation.\u201d<\/span><\/p>\n

It is precisely this Model 720 that the Court of Justice of the European Union (CJEU) considers \u201cillegal,\u201d because it imposes a system of penalties that is too high. The European Court\u2019s ruling is devastating.<\/span> It argues that Spain is pursuing the free movement of capital recognised by the European Union<\/b> with a \u201cdisproportionate restriction.\u201d<\/span><\/p>\n

For this reason, the current PSOE finance minister, Mar\u00eda Jes\u00fas Montero, who until now has ignored the legal process while awaiting the CJEU\u2019s decision, has stated that Spain will reform the law.<\/span> If it fails to do so, Spain could be fined by Brussels<\/b>. The ruling, which is not explicit in these terms, also <\/span>opens the door to claims<\/b> from all those who have been forced to pay the penalties set out in the regulation.<\/span><\/p>\n

But what exactly does Royal Decree 1065\/2007 say? Here are the three most frequently asked questions. At the same time,<\/span> especially now that the regulation has been appealed, we recommend resolving any doubts with the advice of a legal expert<\/b>.<\/span><\/p>\n