A Tax Authority Inspection in Spain: Your Rights and Criminal Defence

Receiving a notice from the Spanish Tax Agency announcing the start of an inspection procedure causes great concern. As economic crime lawyers, we explain what to expect, your rights and, above all, when the inspection can become a criminal problem.

Phases of the Tax Inspection

1. Start notice: the tax agency notifies the start of proceedings, indicating the taxes and years to be checked. Do not ignore this notice: the proceedings period is 18 months (extendable to 27 in complex cases) and during that time the limitation period is interrupted.

2. Conduct of proceedings: the inspector will request accounting documentation, invoices, bank statements and contracts.

3. Inspection record: the proceedings conclude with a record that may be of agreement, of disagreement (you have the right to appeal), or with a settlement.

When Can the Inspection Be a Tax Offence?

The tax inspection crosses the criminal threshold when the amount defrauded exceeds 120,000 euros per tax and year (Art. 305 CP). From that threshold, the tax agency is obliged to refer the proceedings to the public prosecutor.

Your Rights Before the Inspection

• Right against self-incrimination: you are not obliged to provide documents that incriminate you criminally.
• Right to legal assistance: you can attend all appearances with a lawyer.
• Right to know the scope: the tax agency must tell you which taxes and years it is inspecting.
• Right to appeal: you can submit pleadings within 15 days.
• Right to limitation: if the tax agency exceeds the legal deadlines, the proceedings may be null.

Voluntary Regularisation: Your Best Option

If you suspect the inspection may uncover undeclared amounts above 120,000 euros, voluntary regularisation (Art. 305.4 CP) is your best card. It consists of filing supplementary returns and paying the debt before the tax agency formalises proceedings. Full voluntary regularisation excludes criminal liability: it is as if the tax offence never existed.

Cryptocurrency Inspections

Since 2024, the tax agency has intensified inspections of taxpayers with cryptoassets. Regulated exchanges automatically report the operations of Spanish users. If you did not declare gains from buying and selling cryptocurrency, staking or mining, you may receive a notice. If the amount defrauded exceeds 120,000 euros, the tax offence is configured.

Inspections of Companies: Risk for Directors

When the inspection is of a company, criminal liability falls on the director who signed the returns or had the duty to supervise them. The director can go to prison for the company's tax offences. This is why it is essential for the company to have a compliance programme with internal tax controls.