Consequences of Late Payment: Understanding Surcharges and Penalties

March 21, 2024

Consequences of Late Payment: Understanding Surcharges and Penalties

Owning property in Spain comes with its fair share of tax responsibilities, and getting through the complexities of the Spanish tax system can be daunting for many property owners, especially with a language barrier.

The late filing of taxes in Spain is a common occurrence, but with the right guidance, it can easily be avoided. In this article, we’ll be taking a look at the repercussions of late tax payments and provide a comprehensive guide to help property owners get to grips with the consequences of paying taxes late.

Late Filing Surcharge

The Spanish Tax Agency (Agencia Tributaria) imposes surcharges on overdue tax payments, which vary depending on the timing of the payment. If a tax return is voluntarily filed after the deadline, a surcharge of 1% per month is applied for each month following the end of the voluntary declaration period. For instance, if the deadline for tax declaration ends on December 31st and the tax is filed in March, a 3% surcharge will be applied. From the thirteenth month onwards, a fixed surcharge of 15% plus interest for late payment will be applied.


Executive Period Surcharge

In some cases where tax returns are filed but payment is not completed, an executive period surcharge comes into play. This occurs when, for example, a direct debit payment fails due to insufficient funds. The executive period starts when the original deadline for voluntary payment passes. During this period, there are three types of surcharges that may apply:

  • Executive Surcharge (5%): This is applied if the tax is paid before the Agencia Tributaria sends a formal demand for payment.
  • Reduced Enforcement Surcharge (10%): This is imposed after receiving a formal notice, provided payment is made within specified deadlines.
  • Enforcement Surcharge (20%): This is applied if the deadlines for the reduced enforcement surcharges are not met.


Penalties are applied by the tax authorities in specific instances, such as late filing without prior demand or discrepancies in the paid amount. Penalties typically start at 50% of the demanded amount for discrepancies not exceeding 3000 €.

It’s important to note that penalties and surcharges for late filing are mutually exclusive. This means that if taxes are proactively filed after the deadline, but before any formal demand from the tax authorities, surcharges will be applied to account for the delay, but additional penalties will not be charged.


Revolutionising Taxes for Non-Residents in Spain

Late payment of non-resident taxes in Spain can result in surcharges and penalties imposed by the Agencia Tributaria, adding to the financial burden of property owners, but understanding the consequences of late payment and adhering to deadlines is crucial for avoiding these unwanted additional charges. By staying informed and seeking professional guidance when needed, property owners can navigate the Spanish tax system more effectively and ensure compliance with your tax obligations in Spain.

At IberianTax, we’re committed to helping non-resident property owners in Spain manage their tax responsibilities efficiently. Our comprehensive services and expert guidance make tax filing a hassle-free experience, allowing property owners to stay compliant with Spanish tax laws and avoid unnecessary penalties and surcharges.

By utilising our tax software, non-resident property owners will not only find the process much easier, but they can also save potentially hundreds of euros each year, in comparison to using an accountant or gestor.

Our prices start from just 34.95€ - the price of a nice lunch! – for guaranteed peace of mind when it comes to your Imputed Income Tax, Rental Income Tax and Capital Gains Tax in Spain. Say goodbye to tax stress and hello to simplicity with IberianTax.

Sign up for your free account with IberianTax today, and we’ll even send you a reminder when you need to file your non-resident taxes!

Modelo 210 surcharges late payment Tax Office Spain