Report your broker's cash account on form 720

Do current accounts on assets and rights located abroad have to be declared? You have it very easy with Autodeclaro.es

¿How to declare the cash account of Degiro, Interactive Brokers and XTB Brokers?

Form 720 is a declaration of an informative nature, used to declare assets and rights in order to comply with Spanish tax obligations.

Remember that this I would only apply to you if the sum of current or cash accounts abroad exceed €50,000as ruled by the Tax Agency. Here are the instructions on how to declare your tax return. CASH ACCOUNT of your broker in the Modelo 720with both DeGiro and Interactive Brokers (IBKR).

Note: If you have any questions or problems, please do not hesitate to contact us at contact.

What is the 720 model?

The 720 model is a informative statement with which the Tax Authorities can find out about the assets and rights that any person has abroad. The purpose of this report is to inform the administration of the balance in accounts in banks located outside Spain, as well as securities, insurance, income or real estate, among others.

Self-declared is a tool for automating the completion of the 720 tax return, which can help you save a lot of time and money.

How to file Form 720? How to declare a Degiro broker account?

In order to be obliged to file the 720 form the balance of current accounts located abroad must exceed 50,000 euros.. Both DeGiro and Interactive Brokers are brokers with no tax domicile in Spain, which makes it necessary to notify the tax authorities of all money movements with these companies outside Spain.

Failure to file this form may result in tax offences in the future. To avoid such problems, below you can find a step-by-step guide to declaring your assets and rights abroad.

1.1 DeGiro Cash Account

The instructions for obtaining the DeGiro cash account are as follows:

1/ Enter the DeGiro website

2/ Go to "Login / Withdrawal" -> "Log in"..

3/ Select the option "Manual transfer to DEGIRO". Here we would have the bank details of IBAN, BIC, bank name and bank address.

3/ Obtain balance at 31 December and average balance last quarter

Go to "Activity" -> "Reports".

Once downloaded, go to the last page of the report to obtain the data relating to the balance at 31 December and the average balance for the last quarter.

4/ We would now go to our statement of the tax model 720 in the AEAT, to enter the DeGiro cash account details as follows:

Note: The box "Valuation 2: Amount or value of the transfer; average balance of the last quarter" is not provided directly by DeGiro.

To make a rough calculation it would be done in this way:

a/ We shall record day by day the closing balance of the cash account for the last quarter. Once this has been done, we will add up all the amounts and divide by 92 (number of days in the last quarter) and so we will have the average amount of the last quarter.

This information can be obtained from "Activity" -> "Statement of account and write down the amounts for each day. If you do not register on any day, take the total value of the previous day.

In the example below, the amounts for each day are shown. However, the amounts for 31 December would be missing (the same as 30 December), as would the amounts for 25, 26, 27, 28 December, which would be the amount for 24 December. And so on.

If you also want to automate the completion of the rest of the securities in your portfolio in DeGiro or any other broker, you can do it here:

1.2 Cash account at Interactive Brokers (IBKR)

The quick option is to create a "flex query" that provides all the information, as explained below. here.

It would not be entirely valid since what we will get is a .CSV file, which can be manipulated as we wish, therefore, if at any time the AEAT asks us for evidence, you will have to download one by one the daily reports for the last three months of the year (no report on weekends, you can use the balance at the end of Friday).

For now, we will explain how to obtain the CSV to calculate the average balance for the last quarter.

1/ Go to the tab "Performance and reports" -> "Flex Queries": In the flex query, you have to select the section "Balances in phrex"..

2/ Select the fields "Quantity", "Report Date" and "FX Currency". Leave the default options and continue and save the query.

3/ Don't forget to specify the daily separation in the "General settings" and save the flex query:

4/ Execute the flex query and choose the CSV format to be able to manipulate it in excel.

If you have cash in multiple currencies, the report itself will show you the total balance in € for that period.

As the report shows the cash of each currency, you would have to take the ECB exchange rate for each day. You can download the exchange rate series here: https://www.ecb.europa.eu/stats/policy_and_exchange_rates/euro_reference_exchange_rates/html/index.en.html

It would be left to handle the excel to make the sum and divide by 92, (on weekends there is no report, you can use the balance at the close of Friday).

A manual calculation would be done in this way:

a/ The closing balance of the cash account for the last quarter should be downloaded and recorded on a day-by-day basis. Once this is done, we will add up all the amounts and divide by 92 (number of days in the last quarter) and so we will have the average amount of your Interactive Brokers cash account for the last quarter.

Declaring broker cash accounts on the 720 form is vital. This action helps to avoid penalties and fines and prevents tax fraud. It may seem complicated but, following the steps set out in this post, it is very simple to carry out. If you have any questions, don't hesitate and click on contact.

Here is an example, you would have to adjust the data to your IBKR account as the accounts were migrated to Ireland.

If you also want to automate the completion of the rest of the securities in your portfolio in DeGiro or any other broker, you can do it here:

1.3 Cash account on XTB

In the annual report you have the information about your cash account linked to your investment account:

1/ Go to XTB's xStation 5: https://xstation5.xtb.com/?branch=es#/_/login

2/ Go to "My Account" -> "Customer Corner".

3/ Go to "My Profile -> Documents . Download the document "Portfolio Statement 31 December 2023 - XXXX.pdf"..

In this PDF you will have the information related to your cash account associated to the investment account of your XTB broker to declare in your Form 720.

1.4 Cash account in Trade Republic

In the annual report you have the information about your cash account linked to your investment account:

1/ Log in to Trade Republic: https://app.traderepublic.com/

2/ Go to "Profile" and look for the "Annual Tax Report of the relevant year. And download the PDF document.

3/ In the section III. Form 720under the heading Key C. You will find information relating to your cash account in Trade Republic to be entered in the Form 720 manually.

Note: Remember that it is only necessary if you have more than €50,000 in cash between all your foreign accounts.