Hacienda Tax Inspection in Spain: What Expats Need to Know

How Hacienda tax inspections work in Spain, your rights during an inspection, and how to avoid common pitfalls as an expatriate taxpayer.

Being selected for a tax inspection by Hacienda (Spain's tax authority, AEAT) is one of the most stressful experiences an expat can face. Understanding the process and your rights is crucial.

Why Expats Get Inspected

AEAT increasingly targets expats for:
- Unreported foreign income
- Modelo 720 (overseas assets declaration) non-compliance
- Incorrect non-resident tax returns
- Large property purchases without matching declared income

Your Rights During an Inspection

Right to be informed of the scope and duration
Right to legal representation
Right to see all documents used against you
Right to make allegations and present evidence
Right to appeal any assessment

Common Mistakes to Avoid

Ignoring AEAT notifications
Not declaring worldwide income
Failing to file Modelo 720
Not keeping proper records of foreign income

Penalties

Penalties range from 50% to 150% of unpaid tax, plus interest. Modelo 720 violations can attract disproportionate fines.

How We Defend Clients

At Bufete Padilla, our tax lawyers represent clients throughout the entire inspection process, from initial response to appeals before the Economic-Administrative Tribunal.