Records to keep for foreign income, gains and tax paid

Key rules

• Retention: Keep records at least four years from the end of the filing period, longer for assets or losses you carry forward.
• Foreign tax: You need proof the tax was actually paid and the year it relates to, not just the income.
• Cost basis: If you cannot prove what you paid, the AEAT may use other values.
• Euro conversion: Keep your euro conversion for every foreign amount, with the rate and date you used.
• Translations: Provide a Spanish translation of foreign documents when the AEAT asks for one.

Keep everything that proves a figure on your return

If you report foreign income or gains in Spain, the tax agency (AEAT) can ask you to prove any number. Keep the original documents, your euro conversion of each amount, and proof of any foreign tax. The list of documents is in the box below this text.

Proof of foreign tax paid

If you claim a credit for tax paid abroad, you must show the tax was actually paid and which year it relates to. The usual proof is one of these:

• the foreign tax return or assessment, plus proof of payment
• a withholding certificate or statement from the payer or the foreign tax authority, showing the income, the rate and the tax withheld

An annual tax statement from your bank or broker is commonly used. The AEAT decides case by case what is enough, so keep more rather than less.

Cost and holding records for investments and crypto

You must be able to prove what you paid and when. If you cannot, the AEAT may use other values.

• Shares, funds and similar: purchase contracts, broker or bank confirmations, and account statements.
• Property: the deeds.
• Crypto: the full transaction history exported from each exchange and wallet, with fees and the euro value on each date.

Spanish tax matches sales against your earliest purchases first (first in, first out) for shares and crypto. So you need the whole history of every purchase and sale, not just the latest year. Exchanges can close or delete data, so export your histories regularly.

Convert to euros and keep the working

Write down how you converted every foreign amount. The usual rate is the European Central Bank reference rate on the relevant date:

• Income: the date it accrued.
• Investments: the date of each purchase and each sale.
• Foreign tax: the date it was paid or withheld.

Some items, such as the Modelo 720 and Modelo 721 asset declarations, may use year-end rates instead. Check the form's instructions. Keep your conversion with the documents it relates to.

How long to keep records

Keep them for at least four years from the end of the voluntary filing period for that return. The AEAT's actions can interrupt that period and restart the clock.

Some records need longer. For an asset, or a loss you carry forward, keep the records for as long as the item affects later returns, plus four years after the last year you use it. Keep proof of foreign assets longer as a precaution, because the Modelo 720 penalty rules changed after an EU court ruling.

Translations

If a document is not in Spanish, the AEAT can ask for a Spanish translation. In practice it often accepts English documents as they are. For other languages it may ask for a translation, sometimes a certified one. The AEAT office decides, so ask it before paying for a sworn translator.

The yearly calendar below shows when the asset reporting and wealth tax dates fall.

Your yearly calendar of Spanish asset reporting and wealth tax dates

The year at a glance

Everything is measured on 31 December. The foreign asset and crypto reports come first, in the first quarter. Wealth tax follows in spring, alongside the income tax return.

31 December: your snapshot

Save year-end statements for every foreign account, investment, property and crypto custody account as soon as the year closes. Every return below is built from these figures.

1 January to 31 March: foreign assets and crypto

Foreign asset and foreign crypto reports are filed between 1 January and 31 March each year, for assets held on the previous 31 December. Filing is electronic.

Modelo 720 is for Spanish tax residents with assets abroad. It has three categories: bank accounts, securities and insurance, and property. You file when the total in any one category is over €50,000 at 31 December. For accounts, the average balance over the last quarter also counts. After your first filing, you file again only if a category rises by more than €20,000 over the last filed value, or if you sell or cancel an asset.

Modelo 721 is for crypto held with exchanges or providers outside Spain, when the total passes €50,000 at 31 December. Crypto held with Spanish providers, or in your own wallet, is not covered. After the first filing, you refile only if the value rises by more than €20,000. Check with a tax adviser how this applies to your wallets and platforms before the window opens.

April to 30 June: wealth tax

Modelo 714 is the wealth tax. It applies to your net assets at 31 December. As a resident, you are taxed on assets worldwide. The national exemption is €700,000 per person, plus €300,000 for your main home. Regions can change these amounts, and some give a full rebate, so what you pay depends on where you live. Even where the tax is rebated, you may still have to file.

Modelo 718 is the solidarity tax. It applies only if your net assets are above €3 million at 31 December. It runs at 1.7% above €3 million, rising to 3.5% above €10 million. Wealth tax you paid is credited against it.

Both are filed in the same spring period as the income tax return, usually early April to 30 June. Direct debit closes a few days earlier. The tax agency sets the exact dates each year, so check them in April.

Your income tax return

The annual return runs in the same spring window. Its dates, who must file and how are in the tax residency and filing content, so this calendar does not repeat them.

A simple yearly routine

1. January: download year-end statements and work out your totals for each category.
2. By 31 March: file the 720 and 721 if you are over €50,000, or if a category has risen by more than €20,000 since your last filing.
3. April: check this year's dates for the wealth tax and income return.
4. Before 30 June: file the 714 and the 718, if they apply to you, and your income return. Allow for the earlier direct-debit cut-off if you pay that way.

Documents you need

• Proof of foreign tax paid: the foreign tax return or assessment plus proof of payment, or a withholding certificate or statement from the payer or foreign tax authority showing the income, the rate and the tax withheld. It must show the tax was actually paid and the year it relates to.

• Annual tax statement from your bank or broker, commonly used as proof of income and tax withheld.

• Cost and holding records for foreign investments: purchase contracts, broker or bank confirmations and statements, account statements, and deeds for property.

• For crypto, the full transaction histories exported from each exchange and wallet, with fees and the euro value at each date.

• Spanish translation of any foreign document not in Spanish, when the tax agency asks for one. English documents are often accepted as they are; for other languages the agency may ask for a certified translation.

• Your euro conversion of each foreign amount, kept with the records above for at least four years from the end of the voluntary filing period. Keep records for assets or losses carried forward for four years after the last year they are used, and keep proof of foreign assets longer as a precaution.

Frequently asked questions

Which exchange rate should I use to convert foreign amounts to euros?

Use the exchange rate on the date the income accrued or the transaction happened, normally the European Central Bank reference rate. For investments, use the rate on each purchase or sale date. For foreign tax, use the rate on the payment or withholding date.

Do I need a sworn translation of my foreign documents?

Not always: the tax agency often accepts documents in English without translation. For other languages it can ask for a Spanish translation, sometimes certified, when it needs one. Whether a sworn translation is needed is decided by the tax office handling your case.

What proof of foreign tax paid will the tax agency accept?

Normally you need the foreign tax return or assessment plus proof of payment, or a withholding certificate from the payer or foreign tax authority.

What happens if I cannot prove what I paid for an investment?

The tax agency may use other values if you cannot prove the cost. Spanish tax uses the first-in, first-out method for shares and crypto, so you need the full history of each purchase and sale.