Tax Crime Lawyer in Valencia

Valencia's AEAT Regional Delegation is the third-largest tax inspection office in Spain by volume. For international residents — British pensioners, Dutch entrepreneurs, American remote workers — the Spanish tax system can be a minefield of unexpected obligations that cross the criminal threshold.

Tax fraud in Spain (Art. 305 Criminal Code) becomes a criminal offense when the unpaid amount exceeds €120,000 per tax and fiscal year. Below that threshold, it's an administrative infraction (fine). Above it: 1 to 5 years imprisonment plus a fine of up to six times the amount defrauded.

The key difference for expats: Spain taxes worldwide income of tax residents. UK pensions, US stock options, rental income from properties abroad, and cryptocurrency gains are all taxable. Many expats discover this only when the AEAT opens an inspection.

Based on our defense work in Valencia, the most common tax crime situations for international clients include:

• Undeclared worldwide income: UK or US pensions, dividends, and rental income not reported on Spanish tax returns. The AEAT cross-references data via automatic exchange agreements (CRS/FATCA).
• Modelo 720 failures: Failure to declare overseas assets exceeding €50,000 (bank accounts, properties, investments). While the Constitutional Court struck down disproportionate penalties, the reporting obligation remains.
• VAT fraud in business: International businesses operating in Valencia's ceramics, agri-food, or textile sectors may face allegations of fictitious intra-community transactions.
• Crypto tax evasion: Unreported cryptocurrency gains. Spain's Modelo 721 now requires declaration of crypto assets held abroad.

If you suspect your tax situation may cross the €120,000 criminal threshold, voluntary regularisation (Art. 305.4 CP) is the most powerful defense tool available. By filing amended returns and paying the outstanding tax before the AEAT notifies you of an inspection, criminal liability is completely extinguished.

This route is especially relevant for international residents in Valencia with undeclared UK pensions, overseas property rental income or cryptocurrency portfolios. We assess each tax position and, where regularisation is viable, handle it so that it meets the requirements of Art. 305.4 CP. The cost of regularisation — surcharges and interest — is generally far lower than the consequences of a criminal conviction.