1. Form D6 Spain
a. What is Form D6 Spain?
Form D6 Spain is a declaration before the Registry of Spanish investments abroad, which falls under the Ministry of Economy. Specifically, this is a declaration relating to investments in companies listed on a stock exchange or organised market, when the securities are deposited with a company registered abroad or when they remain in the custody of the holder of the investment. Form D6 Spain is an informative statement and not a tax, thus it does not require payment of any fee or tax.
Form D6 Spain may be used for the statement of operations (flows) and for declaring deposits. Although you must know that information regarding flows and deposits should never be submitted in the same form.
In short, this is an informative statement which is closely related to Form 720 Spain.
b. Who should submit Form D6 Spain?
Form D6 Spain, also known as Declaration of holders of Spanish investment in marketable securities held abroad, is mandatory for all individuals and legal entities residing in Spain that own marketable securities abroad.
- A statement of operations (flow) will be submitted for each investment in foreign companies that meets one of the following two conditions:
- That it equals or exceeds 10% of the share capital of the company in question.
- That the total amount of the investment exceeds 1,502,530.26 euros
- When owning marketable securities on 31 December, these parties will submit a statement of deposits on an annual basis. A marketable security is considered to be located abroad when the following premises are met:
- The broker does not inform the Spanish Tax Agency due to not being Spanish.
- The securities account is domiciled outside Spain.
Otherwise, these would not be considered securities abroad and, therefore, the parties would be obliged to submit Form D6 Spain.
If you want to know whether you are obliged to submit Form D6, please contact our consultants that specialise in all aspects relating to Form D6 Spain and international taxation.
c. When is Form D6 Spain to be submitted?
The submission period for Form D6 Spain, or statement of holders of Spanish investment in marketable securities held abroad, will depend on whether it is a statement of operations or of deposits.
- In the event of submitting Form D6 Spain for declaring operations (flows), the period is one month as of carrying out the investment operation.
- In the case of submitting Form D6 Spain for declaring deposits, the period runs from 1 January to 31 January, for securities held on 31 December.
e. How is Form D6 Spain to be submitted?
Form D6 Spain can be submitted by ordinary mail, at the Registry of the General State Administration, or via electronic means.
- By ordinary mail, this form may only be submitted by individuals and will be accompanied by a printed copy of the document, signature, photocopy of their ID document and the broker’s extract as at 31 December. It is to be sent to the postal address of the Ministry of Economy, Industry and Competition, to the attention of the General Secretariat of International Trade of Services and Investments. Paseo de la Castellana, 162. 28046 Madrid.
- In person at the Registry of the General State Administration, without the need for it to be an administration of the Ministry of Economy.
- Electronically, using a Digital Certificate for signing the document, photocopy of your ID document and the broker’s extract as at 31 December.
2. Risks and penalties
Form D6 Spain is of mandatory compliance, therefore the regulation contemplates various penalties depending on whether the case involves non-submission or late submission.
A failure to submit the declaration entails a penalty of up to 25% of the undeclared amount, with a minimum of 3,000 euros; while late submissions entail a penalty of up to 300 euros during the first six months as of the end of the submission term and 600 euros after six months.
The sanctioning regime is quite different from that applied to Form 720 Spain, yet we always recommend submitting the forms within their pertinent periods to avoid exposure to these penalties.
3. Implications of Form D6 Spain in other taxes
- Form 720 Spain: Form D6 Spain is closely related to Form 720. If you own securities abroad in excess of 50,000 euros, you will also be required to submit Form 720 Spain.
- Wealth Tax: When your assets come to a gross figure of 500,000 euros or more, you are required to submit a Wealth Tax return.
- IRPF (Personal Income Tax): In the event of your securities or shares generating earnings from investment capita, these must be declared in the IRPF return.
Form D6 is not an overly complicated form, but its complexity lies in the fact that many people are unaware of its existence, thus leading to not submitting it when required. We stress the convenience of submitting the form when obliged to do so. Seeking expert advisers will help you avoid these penalties and problems with the Ministry of Economy.
For any questions, please contact our team of advisers for expert advise on Form D6 Spain.