Spanish High Courts rules that the Spanish Tax Authorities (Hacienda Pública) cannot take action against people and companies before any ruling has been handed down, in cases where an appeal has been filed.
Previous to this judgement Hacienda used to start the execution process against people deemed debtors by Hacienda, even if court proceedings were still ongoing to establish if the Tax Authorities were right or not.
The only way to avoid your assets being taken before a court ruling in their favour was to apply for a stay of execution at the time of lodging an appeal; in other words, if you didn’t want your assets to be seized by the Spanish Tax Authorities, you had to ask them not to seize them in advance. But this way Hacienda was violating a important constitutional right, as per the Spanish Constitution (article 24).
Silencio Administrativo
For example, if Hacienda believed that someone owed money for the undeclared rental income, the institution recovered the alleged amount directly from the person in question based on the principle of ‘Silencio Administrativo’, or ‘administrative silence’, without waiting for a clear judgment following a possible appeal procedure.
Now, however, potential debtors can breathe a sigh of relief, because it has been decided that Hacienda cannot act against them until a final ruling is on the table. In cases where they have the right to appeal, they are now entitled to a firm ruling on appeal before Hacienda can start handing out fines, and seizing assets.
So in other words, from now on, potential debtors must be considered innocent until found guilty, as stated in article 24 of the Spanish Constitution. No penalties can be imposed to innocent individuals.
Source: Spanish Propoerty Insight
More information?
Do you want more information about this post or about taxes in Spain? Read below what you can download for free or ask us your question without obligation.
–
Brochure Tax Rates Spain 2019
Download free and without any obligation our brochure Tax Rates 2019, with the current tax rates for companies, individuals and real estate. A ‘must have’ for advisers who have clients with business, family or a holiday home in Spain.
Free download Tax rates Spain 2019, click here
–
Best deal > Free alert service
We offer our clients, advisors and visitors of this website the possibility a free alert service. No costs and no obligations. We will inform about deadlines for tax returns and interesting changes and possibilities for (specificly) foreigners who are living in Spain, have business in Spain or who have family or a house in Spain.
Do you want to stay up to date? Then fill in your name and email in the Free alert service fields on our home page. Subscribe now, it’s free.
–
questions about starting a business in Spain?
We, EuroEconomics, the company behind EasyTaxSpain, have a team of more than 50 tax advisors, lawyers and accountants. Do you want to start a business in Spain?
Do you have questions about taxes or starting a business in Spain and are you looking for a contact that looks after tax affairs and tax returns in Spain?
Ask us for free and easy your question
You will receive a response within one working day
No costs