More than 27 years of experience
28 January 2022

On 27 January 2022, the Court of Justice of the European Union (hereinafter CJEU) issues a judgment in the proceeding that the European Commission initiated against Spain in relation to tax form 72 – Declaration of assets abroad -, considering its penalty system to be disproportionate.

The judgment completely annuls the penalty system on the grounds of three aspects:

• The CJEU abolishes the minor penalties associated with failure to file Form 720 on time, which were 100 euros per item of information (with a minimum of 1,500 euros), and 5,000 euros per item of information (with a minimum of 10,000 euros), associated with failure to file.

• The CJEU has taken a position against the imputation of an unjustified increase in assets to the earliest of the non-prescribed tax years, in the case of failure to declare the asset.

• The CJEU considers that the penalty of 150% of the tax liability for this unjustified increase in assets is disproportionate and would be contrary to the free movement of capital.

The consequences of the ruling for the taxpayer are manifold, as the CJEU rulings have “ex tunc” effects, i.e. from the entry into force of the regulation, in this case October 2012.

Therefore, all pending sanctioning proceedings would be annulled, it would force a refund of what has been paid in the years for which the statute of limitations has not expired, and for those for which the statute of limitations has expired, the way would be open for a procedure for annulment or even for the State’s financial liability. This opens the door to millionaire refunds by the Tax Office.

With regard to form 720 for the 2021 tax year, we will have to wait for the Tax Agency’s decision, given that although the current form is in force, it has been emptied of its content by stripping it of its sanctioning regime.

Related entries
Renta 2022
31 January 2023


The Spanish Tax Office has already announced the calendar for the Tax Return (Renta) 2022, which corresponds to the calendar year 2022. The period will start on the 11th of April and will end on the 30th of June. If the result of the form is to pay, which is usual for non-national residents as […]

28 December 2022


In the last week, ABAD & ASOCIADOS have contributed in three articles for Murcia Today. You can find them below! These are the new tax measures proposed in Spain for 2023 Financial assistance in Spain how to get government help if you cannot pay your mortgage What are the tax breaks available with […]

Renta 2021
18 April 2022


The Renta (Income Taxes)2021 campaign has already started. As in all of them, there are some dates that should not be forgotten: – On April 6 begins the deadline to file the forms telematically, although the Tax Agency has re-enabled the option of filing by telephone from May 5. – The last day to file […]

8 February 2022


On 28 January 2022, the Budget Law of the Region of Murcia for the current year came into force, bringing with it a series of tax changes in the scope of taxes managed by the Región de Murcia. Probably the most relevant is that, within the Donations Tax, the deduction of 99% of the tax […]