The CJEU condemns Spain for Form 720

The CJEU condemns Spain for Form 720

The Court of Justice of the European Union has just published its ruling on the Declaration on assets and rights located abroad (Form 720). With this ruling, the CJEU condemns Spain for failing to fulfil its obligations with regard to the free movement of capital.

Since 2012, the Spanish legislator had regulated a list of very unfavourable tax consequences for those taxpayers who had not submitted the Form 720, had not submitted it on time or had submitted it with some errors.

However, the Court considers the non-applicability of the statute of limitations to be unlawful and considers the 150% penalty and the formal penalties of the form itself to be disproportionate.