Form 720 and foreign platforms: do crowdlending investments have to be declared?

The answer does not depend solely on whether the platform is located outside Spain. It is also important to determine what type of asset the investor actually holds, how the investment is structured and what amount remains uninvested on the platform.

In addition, the Dirección General de Tributos published in 2026 a new binding ruling that is particularly relevant for this type of investment.

Therefore, before simply answering "yes" or "no", it is advisable to understand how the Modelo 720 works and how the various positions are treated.

What is the Modelo 720?

The Modelo 720 is an informative declaration through which certain tax residents in Spain report to the Agencia Tributaria the existence of certain assets and rights located abroad.

It is not a declaration through which a tax is paid directly. Its purpose is to inform the tax authorities about certain assets and rights that meet the conditions established by the regulations.

The form covers, among others, three main groups:

• Accounts located abroad.
• Securities, rights, insurance policies and income deposited, managed or obtained abroad.
• Real estate and rights over real estate located abroad.

The conditions and thresholds apply differently to each category.

Does investing on a foreign platform require filing the Modelo 720?

Not necessarily.

The fact that an investment platform is domiciled outside Spain does not automatically mean that all the money the investor holds on it must be declared through the Modelo 720.

The key question is what right or asset the investor holds.

In the case of crowdlending, there may be a significant difference between:

• Money that remains on the platform without being invested.
• Money used to participate in loans.
• Investments that are represented by securities.

This distinction is particularly relevant because the Directorate-General for Taxation has established specific criteria for investments in crowdfunding platforms.

Binding ruling DGT V0993-26: an important reference

On 5 May 2026, the Directorate-General for Taxation published binding ruling V0993-26, relating precisely to the obligation to report in Form 720 on loans made through crowdfunding platforms.

The criterion establishes that loans made through crowdfunding platforms are not subject to the reporting obligation of Form 720 when such loans are not represented by securities.

This is important because it prevents an investment in a P2P loan from being automatically equated with holding foreign shares, bonds or other securities.

The legal nature of the investment is therefore decisive.

What happens with P2P loans that are not represented by securities?

If an investor resident in Spain participates in a crowdlending project through a loan that is not represented by securitiesthat loan, in itself, is not included in the reporting obligation of Form 720 according to the DGT criterion.

This criterion already appeared in earlier rulings and has been reiterated in 2026. Ruling V0993-26 confirms that crowdfunding loans that are not represented by securities must not be included in Form 720 under the category of securities, rights, insurance and annuities.

Therefore, an investor should not conclude that they must file Form 720 simply because the loan was arranged through a foreign platform.

The specific structure must be analysed.

What if the investment is represented by securities?

The treatment may be different.

On certain platforms, the investment may be structured through securities or shares that do fall within the categories covered by Article 42 ter of the General Regulation on tax management and inspection actions and procedures.

In that case, there may be an obligation to report when the thresholds set for that category are exceeded.

The DGT itself has distinguished between projects structured through loans and those in which the investor acquires securities or shares.

For this reason, before deciding whether an investment must be included in Modelo 720, it is essential to review the contractual documentation and determine exactly what the investor acquires.

Funds that remain uninvested on a foreign platform

Here we find one of the most important issues for users of P2P platforms.

Suppose an investor transfers €60,000 to a foreign platform but uses only €45,000 to fund loans. The remaining €15,000 stays available on the platform.

Those uninvested funds may receive a different treatment from that applied to loans.

The DGT's doctrine has established that amounts held with a foreign entity operating a crowdfunding platform and that are not invested in loans or in certain securities may fall within the reporting obligation relating to foreign accounts, if the corresponding thresholds are exceeded.

Therefore, it is not enough to look at how much money the investor holds within a platform. The capital actually invested must be separated from the balance that remains available.

What is the €50,000 threshold?

Modelo 720 sets a threshold of €50,000 for certain categories of assets and rights, and the calculation must be carried out in accordance with the specific rules of each block.

It is not a matter of automatically adding up all the assets a person holds abroad and comparing the total with €50,000.

For example, the limit applicable to accounts is analysed under the rules corresponding to accounts held abroad, while the limit for securities and rights is calculated according to the rules of that category.

The DGT has expressly stated that the EUR 50,000 limit applies to each category and that exceeding the limit in one category does not automatically mean that the limits of the others are exceeded.

A simple example

Suppose an investor holds:

• EUR 35,000 in P2P loans not represented by securities.
• EUR 20,000 uninvested on a foreign platform.
• EUR 10,000 in a foreign bank account.

The EUR 35,000 invested in loans does not automatically become a position reportable under Modelo 720 merely because it is held on a foreign platform.

By contrast, balances that remain uninvested may have to be analysed within the category of accounts held abroad, adding them, where applicable, to other foreign accounts in order to determine whether the applicable limit is exceeded.

The example is simplified: the actual obligation depends on the legal structure and on the specific circumstances of the taxpayer.

Must Modelo 720 be filed every year?

Not necessarily.

Once the return has been filed for a given category, the obligation to file it again in subsequent tax years depends on the circumstances established by the regulations.

These include, as a general rule, that the combined value of the assets or rights in the corresponding category has increased by more than 20.000 € compared with the amount that gave rise to the previous filing.

There are also specific cases related to the loss of ownership of certain assets or rights.

Therefore, having filed Modelo 720 once does not mean that it must automatically be filed every year.

Three situations worth distinguishing

For an investor using a foreign crowdlending platform, it may be useful to separate three scenarios.

1. Money invested in loans

In the case of crowdlending loans that are not represented by securities, the DGT's criterion indicates that such investments are not included in Form 720 under the securities category.

2. Uninvested cash

If there is cash available on the platform that is not invested in loans or in securities, it may fall within the scope of the reporting obligation applicable to foreign accounts, provided that the applicable requirements and thresholds are met.

3. Investments represented by securities

If what the investor acquires are securities or holdings covered by Article 42 ter of the Regulation, the analysis changes and it will be necessary to check the thresholds and other conditions of that category.

This distinction is probably the most important point for an investor to remember.

Form 720 and taxation are not the same thing

Another common misunderstanding is to think that if an investment does not have to be included in Form 720, no tax obligation exists either.

These are separate matters.

Form 720 is an informational return. The obligation to declare the income obtained from an investment in personal income tax (IRPF) is a separate matter.

For example, interest obtained through a P2P investment may have to be included in the annual income tax return even if the specific investment does not have to appear in Form 720.

The Spanish Tax Agency itself distinguishes between reporting obligations relating to assets held abroad and tax obligations arising from the income obtained.

For this reason, an investor should analyse separately:

• Whether they have to file Form 720.
• Whether they must declare the interest or income obtained.
• Whether there are other tax obligations related to the investment.

What should an investor check before investing in a foreign platform?

Before transferring money to a foreign platform, it is advisable to save and review certain information.

Identify what is being purchased

It is necessary to determine whether you are granting a loan, acquiring a security, participating in a fund or obtaining another type of right.

Check where the platform is located

The platform's legal location may be relevant, particularly when the money remains in an account or balance managed from abroad.

Separate invested money and available money

It is advisable to keep a separate record of:

• Invested capital.
• Capital pending investment.
• Interest received.
• Capital recovered.
• Available balance.

This information may be useful both for tax analysis and for maintaining adequate portfolio control.

Retain the documentation

Contracts, statements, annual reports and account transactions should be retained in order to substantiate the nature and development of the investments.

Review the applicable limits

You should not limit yourself to checking the total amount shown on the platform. The limits apply according to the corresponding category, and there may be other positions abroad that must be taken into account.

What does all this mean for a crowdlending investor?

The main conclusion is that there is no rule whereby every investment in a foreign platform must be reported in Modelo 720.

The answer depends on the nature of the investment.

The doctrine of the DGT distinguishes between loans not represented by securities, securities or holdings, and money that remains uninvested on the platform. Ruling V0993-26 of 2026 specifically reinforces the criterion that crowdfunding loans not represented by securities are not covered by the Modelo 720 obligation under that category.

This makes it particularly important to review the terms and conditions of each platform before determining what an investor must report.

Conclusion

Modelo 720 may raise questions among investors who use foreign platforms, but the answer does not depend simply on the platform being located outside Spain.

In the case of crowdlending, a distinction must be made between loans, securities and money that remains uninvested.

Binding ruling DGT V0993-26, published in May 2026, establishes that crowdfunding loans that are not represented by securities must not be included in Modelo 720 under the securities category. By contrast, money that remains uninvested on certain foreign platforms may be subject to the rules applicable to foreign accounts if the relevant requirements are met.

Therefore, before filing — or not filing — Modelo 720, it is advisable to analyse what is actually held, where it is located, what amount corresponds to each category and what other foreign positions the taxpayer holds.

Tax legislation may change and its specific application depends on each investor's circumstances. This article is for informational purposes and does not replace advice from a tax professional.

The content of this article is provided for informational and educational purposes only. It does not constitute investment, financial, tax, or legal advice. Peer-to-peer (P2P) lending and crowdlending investments carry a risk of partial or total loss of capital. Past performance does not predict future results. Liquidity on a secondary market is not guaranteed. Readers are encouraged to conduct their own research and consult qualified advisors before making any financial decisions. The availability of products and services may be restricted in certain jurisdictions.