Facing an AEAT inspection is stressful. Having the right specialist makes all the difference — in the outcome and in the penalty exposure.
Not all AEAT contacts are the same. The type of procedure determines your rights, timelines and potential exposure.
A limited administrative check triggered by apparent discrepancies or missing information in filed returns. Handled in writing, often via the AEAT electronic notification system. Usually resolved quickly by providing documentation or correction. No physical inspection. Most common trigger: mismatches with third-party data (employer, bank, notary).
A more structured review of specific aspects of a tax return. The AEAT can request documents and ask questions but cannot conduct on-site inspections or review books of account. Limited to specific issues raised in the notification. Applies to the return as filed — cannot open earlier years unless new facts emerge. Common for non-resident rental income, deductions, or incomplete IRPF returns.
The most serious AEAT procedure. Conducted by Inspectors (not Gestores) with full powers: on-site visits, access to accounting records, third-party information requests, and the ability to go back up to four years (or further where fraud is alleged). Notification is formal — the clock starts immediately. Professional representation from the moment of notification is essential.
Late or non-filing of Model 720 (foreign asset declaration) or inconsistencies between Model 720 and IRPF return
Cryptocurrency transactions — AEAT receives exchange data and cross-references with declared income
Beckham Law errors — incorrect application, ineligibility, or discrepancies with the underlying employment contract
Non-resident rental income — foreign property owners in Spain frequently under-declare or mis-report IRNR
Permanent establishment allegations — foreign companies with Spanish employees flagged by social security cross-reference
Transfer pricing issues — related-party transactions between Spanish subsidiaries and foreign parents
Stock option and RSU under-reporting — FATCA / CRS data received from foreign financial institutions flagging unreported income
CRS automatic exchange of information — Spain receives data from 100+ countries about Spanish residents' foreign accounts and investments
All AEAT inspections begin with a formal notification (notificación de inicio de actuaciones inspectoras). This is typically delivered via the mandatory electronic notification system (DEH/sistema Cl@ve) to which registered taxpayers are subscribed. Once the notification is considered delivered, strict legal timelines begin. It is essential to respond within the prescribed period — missing a deadline waives important procedural rights.
The Inspector will request specific documents and information. This phase requires careful management: providing what is requested without volunteering information beyond the scope of the inquiry, and ensuring that every document submitted is reviewed before submission. In complex international cases, the documentation phase can last several months, with multiple requests and responses.
Once the Inspector has reviewed all documentation, they issue a proposed assessment (acta de inspección). This may be an acta con acuerdo (agreed assessment, offering a 65% penalty reduction), acta de conformidad (consented assessment, offering a 30% penalty reduction) or acta de disconformidad (contested assessment). Choosing the right response at this stage has a major impact on the final liability.
After the acta de disconformidad, the Inspector issues a final assessment (liquidación definitiva). From the date of the final assessment, the taxpayer has one month to pay or to initiate the appeals process. Paying under protest while appealing is often the optimal strategy — it stops further late payment interest accumulating while the appeal is heard.
Spain's General Tax Act (Ley 58/2003) distinguishes between three levels of infraction — minor, serious and very serious — with penalty rates ranging from 50% to 150% of the unpaid tax for substantive tax understatements. The classification depends on factors including the amount involved, whether there was concealment, whether there was simulated behaviour, and whether the taxpayer cooperated.
| Infraction Type | Base Penalty | With Cooperation (−30%) | With Prompt Payment (−25%) | Maximum Reduction |
|---|---|---|---|---|
| Minor (infracción leve) | 50% | 35% | 26.25% | −50% |
| Serious (infracción grave) | 50–100% | 35–70% | 26.25–52.5% | −50% |
| Very Serious (infracción muy grave) | 100–150% | 70–105% | 52.5–78.75% | −50% |
| Late payment surcharge (in lieu of penalty) | 5–20% | No penalty | — | No investigation penalty |
In addition to the base penalty, late payment interest (interés de demora) accrues on the unpaid tax from the original filing deadline to the date of payment. The interest rate is set annually — currently 4.0625% per annum. For liabilities going back four years, the accumulated interest alone can represent a significant additional cost.
Where unpaid tax exceeds €120,000 per tax and per year, the AEAT can refer the matter to the Public Prosecutor for potential criminal prosecution under Article 305 of the Spanish Penal Code. Tax fraud (defraudación tributaria) carries a prison sentence of 1–5 years and fines. For aggravated cases (use of nominees, offshore structures, concealment), the sentence can be increased. Proactive voluntary disclosure — before any AEAT investigation commences — is the most effective way to avoid criminal referral.
Filed within one month of the assessment with the same AEAT office that issued the decision. Optional first step. In practice, rarely successful as the same office reviews its own decision — but useful for preserving rights and buying time. Resolution must be issued within one month; if no response, it is deemed rejected by silence.
Filed with the regional (TEAR) or central (TEAC) Economic-Administrative Tribunal. Independent from the AEAT. Free to file. The TEAR has one year to decide (TEAC: six months to one year). No payment required while the appeal is pending if guarantees are provided. This is the primary administrative appeal forum for most cases. TEAR decisions can be appealed further to the TEAC.
Judicial review of TEAC decisions. The Audiencia Nacional hears cases involving large amounts or novel legal questions; regional High Courts (TSJ) hear local issues. Legal representation is mandatory. Timelines are typically 2–4 years. Important for establishing legal precedent and for very high-value disputes.
Final Spanish judicial resort. Only accepts cases of significant legal interest or jurisprudential importance. Increasingly used in international tax cases given Spain's growing body of CJEU-influenced jurisprudence. Decisions bind all lower courts and the AEAT itself.
For issues involving EU law (free movement of capital, non-discrimination, EU Directives), a reference to the CJEU may be made by any Spanish court. The Model 720 penalty reform was driven by a CJEU ruling. EU law challenges can be powerful tools where Spanish law conflicts with EU obligations.
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