Filing tax returns late may seem like a simple oversight, but it has significant financial and legal consequences. In Spain, the Tax Agency sets strict deadlines for taxes such as VAT, personal income tax and corporation tax. Failure to comply can result in surcharges, interest and penalties that directly affect the financial health of your company, especially if it is newly established or small.
If you have come this far because you forgot to file a return or are starting a business and want to avoid surprises, this article clearly explains what happens if you miss tax deadlines and how you can fix it.
Consequences of not filing tax returns on time
Surcharges for late filing (without prior notice)
When you file a return late but before the tax authorities send you a notice, so-called surcharges for late filing without prior notice are applied, depending on the length of the delay:
- Up to 12 months: A fixed surcharge of 1% plus an additional 1% for each full month of delay is applied. Example: if you file your return 3 months late, the surcharge will be 4%.
- More than 12 months: A single surcharge of 15% is applied, plus interest on arrears from the 13th month until the date of filing.
These surcharges do not entail penalties, which makes it highly advisable to act before receiving a formal request.
In addition, if you pay on time and do not appeal, you can benefit from a 25% reduction in the surcharge.
Penalties when the tax authorities detect non-compliance
If the Tax Agency detects the omission and sends you a demand, we are no longer talking about a surcharge, but a punishable tax offence:
- If there was an amount to be paid and you did not file: Penalty of between 50% and 150% of the tax debt.
- If the return was for a refund or had no result: Fixed fine of £200.
- In cases of repetition, concealment or aggravating circumstances: The penalties may be significantly increased.
This may mean that you end up paying double or triple what you initially owed.
Interest on arrears
In addition to the above, there is interest for late payment, which is calculated from the day after the legal deadline until payment is made. For 2025, the legal interest rate for late payment is 4.0625% per annum.
What can you do if you are late in filing?
Voluntary filing
If you have not yet received a demand, file your return as soon as possible. This will allow you to benefit from late payment surcharges and avoid more serious penalties.
You can pay the amount together with the surcharges and interest, or request a deferral or payment in instalments.
Request for deferral
The Tax Agency allows certain debts to be deferred, even if they arise from late filings. This procedure can be done online and is a good way to preserve the liquidity of your business.
How to avoid future tax problems
Prevention is the best strategy. Here are some best practices that can help you:
1. Keep an up-to-date tax calendar
Record key dates for VAT, income tax, form 130, instalment payments, etc. You can use tools with automatic alerts.
2. Outsource your tax management
Professional advice not only prevents errors, but also helps you optimise your tax burden and benefit from allowances.
3. Review your accounts regularly
Having clear and up-to-date accounts allows you to anticipate potential errors before they turn into penalties.
4. Seek support from experts who can represent you before the tax authorities
When faced with any requirement, having lawyers or advisors who can manage the situation for you can mean the difference between effective management and a disproportionate fine.
Are you just starting out and don’t know where to begin?
Many new companies make tax mistakes due to lack of knowledge. If you are focused on getting your project off the ground, let professionals guide you from the start. This will allow you to focus on growing your business without fear of tax non-compliance.
Delaying your tax returns can result in surcharges, penalties and interest that can seriously affect your company. But if you act in time and get good advice, you can minimise the damage and even avoid it altogether.
Do you want to avoid fines and focus on growing your business with peace of mind?
At Gutiérrez Pujadas & Partners, we offer specialised tax and accounting services for start-ups and small businesses. We take care of your tax returns, optimise your tax burden and keep you up to date with your obligations.