Spanish tax notifications for non-residents. Non-resident taxpayers with ties to Spain must stay proactive about their tax obligations. Keeping your address updated with the Spanish Tax Administration is vital to ensure you receive all necessary communications. If you face any issues with tax notifications, seeking expert legal advice is the best course of action to protect your rights and ensure compliance with Spanish tax laws.
Who should be concerned?
Any foreign national with Spanish ties, such as property ownership, business interests, investments, or employment, must understand how the [Spanish Tax Administration (AEAT)] provides notification of tax procedures. Non-resident taxpayers should remain extra vigilant to ensure compliance with Spanish tax obligations as they can inadvertently be notified. The safest option is to appoint a Spanish tax representative to ensure all notifications are properly managed. Del Canto Chambers provides those services in Spain.
How does the spanish administration provide notification of a tax procedure?
The Spanish administration may contact you for various reasons, such as discrepancies in tax declarations. This process is governed by Articles 109 to 112 of the General Taxation Act 58/2003.
Notifications may be sent to the taxpayer’s tax domicile, workplace, place of economic activity, or any suitable location. If delivery fails after two attempts, an announcement is published in the Boletín Oficial del Estado (Official State Gazette). For those abroad, announcements may be displayed at the relevant consulate or embassy.
Sometimes the Spanish Administration could even send a notification to a property that has already been sold or even to the domicile of a deceased person and therefore affecting their inheritors. In these cases, at Del Canto Chambers we have experience appealing to the Courts as this constitutes a violation of article 24.1 of the Spanish Constitution, making the notification invalid.
What happens if you no longer live in Spain or have changed your address?
Even if you no longer live in Spain, you may still have tax obligations. Tax procedures can take years, and notifications might take a long time to reach you. According to Article 48.3 of the General Taxation Act, taxpayers must report any changes in their tax domicile to the administration.
Failure to report address changes can result in missing important communications from the Spanish Tax Authorities. Without updating your address, tax-related processes might start without your knowledge, with notifications published in the Boletín Oficial del Estado (Official State Gazette).
The UK HMRC is now delivering notifications from the Spanish Tax Office to UK nationals using the uniform instrument permitting enforcement of claims. This instrument is covered by Council Directive 2010/24/EU which is still in force in the UK according to article 100 of the Agreement of the withdrawal of the United Kingdom from the EU. This means that the UK HMRC will be claiming debts on behalf of other EU member countries.
Reporting the change in your tax address
To avoid missing important notifications, it is essential to inform the Spanish Tax Administration of any changes in your residence. Proper notification ensures that all communications are sent to your new address. If the administration fails to follow the correct procedure, it may invalidate the process, protecting your rights as established in the Spanish Constitution.
Consequences of not reporting a change in tax address
Failing to update your address with the Spanish Administration can lead to serious complications. If your address is not current, you may miss important communications about tax investigations. This oversight may create legal or administrative processes needing judicial appeals to safeguard your constitutional rights.
What to do if there is a Tax procedure and you have not been notified
If you discover that a tax procedure has been initiated against you without proper notification, it is crucial to seek legal advice immediately. Legal experts will verify if the administration has followed the correct procedure to notify you or if they have not done so, therefore infringing your constitutional rights. They will also review the facts that led to the administrative procedure.
How can we help?
Del Canto Chambers has experience in cases involving a change of residence and related tax procedures. We give specific attention to check that the Spanish Tax Authorities has correctly notified the person of interest, to ensure a fair procedure.
This combined with our expertise in tax, provides an informed and full service approach to cases such as these.
By Paula Losada, International Tax Adviser/ Economist at Del canto Chambers
