Spanish tax notifications

Filed under : Tax

The actions of Spain´s Tax Authority (the “Agencia Tributaria” in Spanish, and referred to as “AT” from this point) in recent years suggests an increased focus on fighting tax havens, searching for hidden assets and controlling international taxation. One of the common measures the AT has adopted is that of sending warning letters to individuals or companies who own property/ies in Spain. 

Through the data provided by the tax agencies of other countries, banks and notaries, the AT is able to analyse taxpayers´ behaviour and encourage, facilitate and if necessary, enforce their compliance.

The AT is able to access information on all international bank transfers and places special emphasis on the largest amounts.

With respect to corporation tax and countries where corporation tax is not charged, such countries have a duty to inform the AT where the directors of companies (resident in such countries) reside and provide the AT with information about the transactions such companies carry out.

As well as state taxes, it should be noted that there are a series of municipal taxes which must be paid by non Spanish companies and/or individual property owners to respective Town Halls, such as IBI, refuse collection tax, vehicle taxes etc.

Every day, new notifications are received from the AT and it is essential to respond. Failing to respond within the stipulated time frames will lead to fines, regardless of whether the allegations are correct or not. Any replies generally need to be accompanied by supporting documentation which will often need to be translated and sometimes legalised. This can all be very time consuming and costly. Hence it is very important to be up to date with the AT and ensure that the AT has correct information and details, whether you are a tax resident in Spain or a non tax resident and simply own property in Spain and whether you are an individual or a company/director of a company with interests in Spain. 

De Cotta Law has a team of professionals who can advise you on the taxes that must be paid in Spain. Please contact us on [email protected] or call for a confidential consultation in English with

Sam Baker on +34 952 527014. Sam works with our Head of Tax – Paula Gomez Más to ensure you get the right advice on Spanish and UK tax obligations. For our Tenerife office call +34 922 719520 or email on [email protected]