Where taxpayers get caught out
Answering a requirement without advice, or sending more than is asked, often widens the procedure. Ignoring it is worse: the tax agency then assesses with the information it has, and penalties follow.
Types of procedure
| Procedure | What happens |
|---|---|
| Requirement for information | The agency asks for documents or explanations |
| Limited verification | A check of specific items of a return, often by letter |
| Inspection | A broader audit of one or more taxes and years |
| Penalty procedure | A separate procedure to impose fines |
| Appeal | Reconsideration, economic-administrative tribunal, courts |
What we do
- Analyse the notification, the deadline and the real risk.
- Prepare a precise answer with the right documents, in Spanish.
- Negotiate agreements that reduce penalties where the law allows.
- Challenge unjustified assessments and penalties, up to the courts.
Common issues for foreigners
We frequently defend clients on undeclared rental income, the tax on the sale of property, residence disputes, the modelo 720 and the deductibility of expenses. See the modelo 720 and non-resident taxes.
First steps
If you have received a letter, read our guide what to do with a letter from Hacienda and send it to us with the date of notification. As your tax representative, we can receive and answer future notices.
An illustrative example
Based on situations we commonly see; not a specific client. A Dutch owner received a proposal assessing ten years of undeclared holiday rental income in Ibiza. We showed that some years were time-barred, documented deductible expenses for the rest and negotiated the penalty reduction for agreement, cutting the final amount by more than half.
This page is published by Castell.tax, the tax practice of Castell.law in Palma de Mallorca. It is general information; tax rules and rates change, so check your case with us before filing.
Not sure what you owe? Ask before the deadline
Send us your situation or the letter you received. A tax adviser will tell you what applies, what it could cost and what to file.
Questions about tax inspections in Spain
How long do I have to answer a requirement?
Usually ten working days from notification, sometimes extendable.
How many years can the tax agency review?
In general four years, although some situations extend this.
Can penalties be reduced?
Yes, by agreement and prompt payment, within the legal reductions.
Can you represent me if I live abroad?
Yes, with a power of attorney we handle the whole procedure.