Tax Fraud in Spain: Consequences for Foreigners and How to Defend Yourself

Tax Fraud in Spain: Consequences for Foreigners and How to Defend Yourself

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Are You Facing a Tax Investigation in Spain?

If you are a foreign entrepreneur, freelancer, or investor doing business in Spain, you may be subject to a tax investigation by the Spanish Tax Agency (Agencia Tributaria, AEAT). Failing to pay more than €120,000 in taxes per year could result in a criminal charge for tax fraud, leading to severe penalties, including imprisonment.

At Fukuro Legal, we specialize in criminal tax defense and work alongside experienced tax advisors to provide the best legal protection for foreigners in Spain.

1. What Is Considered Tax Fraud in Spain?

Under Article 305 of the Spanish Criminal Code, tax fraud occurs when a person or company fails to pay at least €120,000 in taxes in a single fiscal year.

Who Is at Risk of Tax Fraud in Spain?

  • Foreign entrepreneurs or business owners selling products or services in Spain.
  • Digital nomads, freelancers, or investors generating income in Spain but not reporting it.
  • Expats with companies, assets, or bank accounts in Spain that are not properly declared.
  • Individuals trading in cryptocurrencies or international e-commerce without complying with tax obligations.

If you generate income in Spain, the Tax Agency may investigate you for tax fraud.

2. What Happens If You Are Investigated for Tax Fraud?

If the Spanish Tax Agency detects irregularities, it will initiate the following process:

1️⃣ Tax Inspection

  • Review of your income, tax filings, bank statements, and invoices.
  • Exchange of tax information with foreign tax authorities (EU, FATCA, CRS, etc.).
  • Possible freezing of assets and bank accounts.

2️⃣ Administrative or Criminal Proceedings

  • If the amount owed is less than €120,000, you may face a fine but no criminal charges.
  • If it exceeds €120,000, the case is referred to the Public Prosecutor’s Office and becomes a criminal offense.

3️⃣ Penalties for Tax Fraud in Spain

  • 1 to 5 years in prison.
  • Fines from 100% to 600% of the evaded tax amount.
  • Asset seizures and bank account restrictions.
  • Ban from operating businesses in Spain.

If the amount exceeds €600,000, the prison sentence increases to 6 years.

3. How Can Foreigners Defend Themselves in a Spanish Tax Fraud Case?

If you are under investigation for tax fraud, you need an experienced criminal tax lawyer and a tax consultant. At Fukuro Legal, we offer:

✔️ Criminal defense for tax fraud cases in Spain.
✔️ Tax advisory to prevent penalties and regularize your situation.
✔️ Negotiation with the Spanish Tax Agency to reduce fines and avoid imprisonment.
✔️ Appeals and legal representation before the National Court and Supreme Court.

How to avoid serious consequences?

  • Pay the owed taxes before being formally charged: If you pay before the Tax Agency files a criminal complaint, the case can be closed without prosecution.
  • Negotiate with the Public Prosecutor’s Office: In some cases, we can negotiate a reduced penalty or avoid imprisonment by reaching a settlement.
  • Challenge the case: If there are procedural errors in the investigation, we can file a legal defense.

4. Need a Tax Fraud Lawyer in Spain?

If you are a foreigner facing a tax investigation in Spain, do not wait until you receive criminal charges. Acting quickly can be the difference between a fine and a criminal record.

📞 Contact Fukuro Legal today and protect your financial future and legal status in Spain.

📍 Spanish Law Firm – Experts in Tax Fraud Defense for Foreigners

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