Over the years, we have observed from our law firm how the Spanish Tax Office has improved its channels of cooperation with other European tax offices to the point that they are now sharing all types of information on taxpayers.
Until now, this cooperation was limited to chasing real estate assets located in Spain owned by taxpayers of other countries who had outstanding tax bills with their home tax office. The Spanish Tax Office collected the debt that a taxpayer had abroad by claiming against real property owned in Spain, regardless of whether the person was a resident.
Now the cooperation is even stronger. Administration and inspection proceedings are triggered via the data provided by foreign tax offices. Recently we’ve seen the German and British tax offices inform their Spanish counterpart of known income of nationals of these countries who apparently reside or have their domicile in Spain. Based on this information, the Spanish tax agency sends a claim demanding payment of the undeclared tax and the corresponding penalties, which can reach 50% of the sum owed plus interest on the debt from the deadline for paying the tax. If you have received one of these claim letters in recent weeks, don’t hesitate to get in touch with your tax advisor.
Carlos Prieto Cid – Lawyer