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If we were to define a real estate agent without thinking too much about it, the first thing that would come to mind in a direct and oftentimes very realistic way would be  a company dedicated to opening and closing apartment doors in exchange for a commission.

Here at On Viure, we have a very different vision of what an estate agent is and does. On Viure accompanies its clients and it always tries to get the maximum benefit for them and to explore current issues in order to advise and assist its clients and help them make the most appropriate decisions with regard to their properties.

It is within this context that today and after many years working together that we are able to introduce you to one of our collaborators, Esaú Alarcón García, who is currently in the news after winning the case at the CJEU related to the famous Model 720 form (obligation to declare assets, bank accounts or properties located outside Spain).  Today, with this interview, he will provide answers to questions related to real estate and monetary investments in Andorra.

First of all, I would like to congratulate Esaú Alarcón and the other lawyers on winning the case at the CJEU concerning the Model 720 form. This journey has been a long and arduous one, but it has left a very sweet aftertaste. 

• Who is Esaú Alarcón García?

A lawyer based in Barcelona and a partner at the law firm Gibernau.

Lecturer at Abat Oliba CEU University.

He holds a doctorate in law and is co-founder of www.fiscalblog.es

Member of the Institutional Advisory Board of the Spanish Association of Tax Advisors (AEDAF)

Member of the Editorial Board and columnist for the legal magazine Iuris & Lex El Economista

Columnist for the digital newspaper Crónica Global

Corresponding member of the Royal Spanish Academy of Jurisprudence and Legislation

Interview with Esaú Alarcón

• Why it was worth the effort and what was the purpose?

First of all, I must say, in all humility, that neither Alejandro del Campo nor myself are heroes, nor have we accomplished a feat worthy of Zorro or Robin Hood. We simply initiated proceedings using a legal mechanism or, technically speaking, we participated in the filing of a complaint before the European Commission concerning the regulations of the Model 720 form so that that organisation could conduct an investigation and initiate infringement proceedings that would put an end to precepts that it believed to be contrary to the Treaty of the European Union. In my case, the purpose or intention was purely academic or, to put it another way, it was based on a technical desire to keep the legal system pure and free of rules that run contrary to the most basic rights, principles and freedoms. Has it been worth it? Most definitely. I have made many great friends thanks to this wretched form. Moreover, I have brought peace of mind to many people who pray for me every week. That is something that cannot be bought with all the money in the world.

• Looking back a little, what were the implications of the 720 form for foreign residents in Spain?

Fear, unease, uncertainty, psychological problems after discovering that they had forgotten to present an information form and that their error might have disproportionate consequences.

• Focussing the theme on Andorra, notwithstanding the fact that Andorra is not a Member State of the EU, how does the sentence affect people who have investments in Andorra?

The sentence is fully applicable to Andorra because the CJEU in Luxembourg decided that Spanish regulations had undermined the free circulation of capital, which is a freedom that does not benefit European citizens alone but rather it also benefits residents of third-party territories as well. This is something that is indisputable today.

• Will the people who have declared their investments during the years that these proceedings have lasted be obliged to pay a fine?

If anybody has paid fine - and there will be such cases – they can now use a special procedure to request that the fine be returned. This process will not be easy or quick, but they should try to do it.

• Does this sentence affect monetary and real estate investments equally?

Yes indeed.

• What recommendation would you give to a resident of Spain with investments in Andorra who did not comply with the obligation to provide information through the 720 Form?

Well, what I would say is that a change in the regulations is imminent in order to bring the regulations into line with the sentence, and therefore, with the current legal vacuum, this is a good time to do your homework as far as the Tax Administration is concerned and to consult an advisor who can inform you of the various options that you have available.