European court rules against Spain's overseas assets penalty regime

The European Court of Justice has ruled that Spain infringed the European principle of free movement of capital, triggering an overhaul of its regulations. Residents of Spain, including British expats, have since 2013 been obliged to submit an annual declaration reporting the assets they own outside Spain - the infamous Modelo 720 (or Form 720). This is in addition to annual income and wealth tax returns.  To discourage people from not reporting or underreporting their assets, the Modelo 720 regulation imposes very high penalties for failing to file the declaration, filing it late, or...