A Complete Guide to Managing Tax Debt in Spain
The tax debt recovery process in Spain follows a structured approach to collect unpaid taxes. Here's what you need to know about each phase:
Initial Phase
- The Spanish Tax Agency sends a notice to the debtor
- Payment deadlines:
- If notice received 1st-15th of month: Pay by 20th of same month
- If notice received after 15th: Pay by 5th of next month
- Late payment penalties:
- 10% fee if paid after initial deadline
- 20% fee if payment extends beyond debt notice deadline
- Additional interest accrues from start of enforcement period
Recovery Phase
- Begins when debt remains unpaid after notice deadline
- Tax Agency can:
- Enforce existing guarantees
- Freeze assets (including property)
- Suspend taxpayer rights
- Collect debt through public auction, direct sale, or tender
- Important: Recovery process pauses if taxpayer requests payment delay until Agency responds
End Phase The process concludes in one of three ways:
- Full payment of tax debt plus applicable fees and interest
- Declaration of insolvency if debt cannot be collected
- Expiration of collection period according to statute of limitations
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Person filing tax documents at desk
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Person sitting at outdoor cafe table
Person filing tax documents at desk
Diverse group of people standing together