Form D6: Declaration of Spanish investments abroad

Spanish Form D6, is mandatory for holders of shares or securities of companies registered on a stock exchange abroad. ?
By this form, you declare your investments before the Registry of Spanish investments abroad, however it is not a tax itself.

Who should submit Form D6? And when?

For those taxpayers who are holders of negotiable securities such as shares, participations in investment funds, or bonds dated December 31, deposited or guarded by an entity domiciled abroad, they will also be required to submit Form D6.

This form must be submitted during January each year and will refer to December 31 of the immediately preceding year.

Model 720 is independent of Form D6, the law that regulates each model is different, so for example, if a taxpayer resident in Spain owns securities that are listed on the stock market which are deposited with a broker abroad, if the value of his/her portfolio of securities is less than 50,000 euros – the holder should not submit Form 720 but would be obliged to submit Form D6. In the D6 model, there is no limit that exempts the taxpayer from the obligation to declare, you need to declare from the first euro invested.

What happens if I do not submit the form D6?

It is not common to receive a sanction for failure to submit this model, but the administration could sanction if necessary, for this reason in Form D6 has been regulated the penalty system for breach of this information obligation:

  • If the obliged holder has not submitted Form D6 and the administration has detected the breach, it may require the holder to comply with this information obligation: a penalty of up to 25% of the undeclared amount with a minimum of 3,000 euros.
  • If the holder obliged to submit Form D6 has submitted voluntarily and without prior request from the administration: a penalty of 300 euros for the first six months and 600 euros after that time.

Bear in mind that if you are generating earnings from those securities you must declare it in the Personal income tax (IRPF)

Form D6

Changes to the threshold that need a declaration beginning in 2022, as indicated in law BOE 17 December 2021.

Flows: Each investment or liquidation by non-resident firms in which the investor owns more than 10% of the capital or voting rights of the company in which the investment is made before or after the operation, will be declared. It had to previously declare who was a member of its administrative body, as well as when the investment exceeded €1,502,530.26. The declaration of investment or liquidation will be issued within one month after completing the operation.

Deposits: only those cases in which the investor’s participation is equal to or higher than 10% of the capital or voting rights of the firm, will be required for the declaration of the 2021 financial year, to be presented in 2022. Previously, there was no requirement to declare a minimum or maximum limit. Previously, any investor holding Spanish interests abroad in businesses listed on the Stock Exchange or Organized Market had to submit a declaration when the securities were deposited or remained in the custody of the holder of the investment.

With these modifications to the thresholds, the number of persons required to file Form D6, is substantially reduced. It could be said that, with this update that has already entered into force, only large investors will be obliged to present the Model D6.

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