1) Voluntary submission after the submission deadline without an injunction from the Administration
If you file your tax return after the submission deadline, you will be penalised. The amount will depend on the time elapsed after the due date, and the amount of the obligation. Below, you will find the different penalties applied in accordance with the legislation:
The interest rate for late payment in 2017 was established at a yearly 3.25 %.
Here is an example:
You should have paid 4,000 Euros before 30/04/2016, but you filed your tax return without having received an injunction from the Administration on 03/08/2016. You will therefore have to pay out a penalty of 10% of this obligation, which in this case would be an extra 400 Euros, the total amount being 4,400 Euros, with 4,000 Euros of tax and 400 of interest on late payment.
Tax obligation with an injunction from the Administration
If you do not file your tax return before the deadline, the Administration can require you to pay your taxes, which entails a penalty varying between 50%-100% of the original amount you must pay, depending on the seriousness of the tax infringement. Here is an example:
You should have submitted the Form 210 (Modelo 210) for income, with a payable amount of 3,500 Euros. If a penalty of 100% is applied for not having paid this amount in due time, you will have to pay a total of 7,000 Euros: 3,500 Euros of tax liability, and another 3,500 Euros for the penalty received.
The injunction will be sent by the Administration to the address submitted for notifications.
Finally, you must take into account that outstanding tax liabilities in Spain may be required from the tax administrations of your country of residence, within the framework of mutual assistance and information exchange actions that currently exist in tax agreements signed between countries. In other words, if a German resident has outstanding tax liabilities in Spain, these tax obligations may be communicated from Spain to Germany, and the German Tax Administration can require the payment. This topic will be dealt with in more detail in future articles.
The procedures mentioned above can in no way be taken as recommendation of action. Please consult our experts before taking action, so they can study your case and provide you with the best advice.