There are no extensions for tax payments in Spain, so if you miss the deadline and haven’t paid the taxes due, you’ll receive a fine in the form of progressively added interest. The tax authorities can charge up to 15% on top of the outstanding tax value if you don’t pay over the next year. If you struggle to manage manual taxes, it’s best to hire a Spanish tax solicitor like one of our team.
If you don’t submit tax returns at all to declare income or assets in Spain, the Agencia Tributaria will catch up with you and consider this active tax evasion. They will investigate you to look for evidence of fraud, leading to the freezing of your bank accounts, and the bank reclaiming mortgaged property. They can issue urgent tax payment demands for up to 4-5 previous years of outstanding taxes.
This can get expensive when it all piles up with added financial penalties, and you can’t dodge the Spanish authorities forever, so it’s not worth attempting not to pay. If you believe that you should have filed tax returns and paid taxes in Spain within the last 4-5 years, you can make retroactive declarations. The Agencia Tributaria may reduce the penalties following a voluntary declaration.