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Regularization of Tax Debts and Waiver of Pension Penalties, Surcharges and Interest

With the arrival of the New Year, a new Act 26/2014 has also come into force, amending the Personal Income Tax regulation. This Law introduces an interesting additional provision, which allows for the regularization of tax debts when these come from foreign pensions. It also enables the waiver of penalties, surcharges and interest generated from these pensions.

This provision was introduced to favour those who are elderly, who have recently moved to Spain and should pay Personal Income Tax, allowing them to voluntarily regularize their tax debts. If the Tax Administration´s intervention has already concluded, the pension´s penalties, surcharges or interests may be cancelled.

Debt regularization should be carried out by submitting additional Income Tax Statements of tax periods which have not reached their period of statutory limitations (years 2010-2013). This additional Income Tax Statement must be accompanied by the appropriate form, which has been made available for this purpose on the National Tax Agency´s website. Additionally, the resulting tax liability can be deferred.

Regarding penalties, surcharges and interests arising from late submission of Income Tax Statements from pensions, waiver is made regardless of whether or not they have been confirmed, and the Tax Administration should refund the amount that would have been paid. If refund is not made within six months, the Tax Administration shall pay default interest. It is possible to use the electronic form on the Tax Agency´s website to apply for the waiver of penalties, surcharges and interests arising from the regularization of foreign pensions.

The regularization of tax debts and waiver of penalties, surcharges and interests from pensions can be requested from the 1st of January until the 30th of June, 2015. These forms may be submitted either directly at the Tax Agency´s offices or online on their webpage.

Lexland Lawyers is at your complete disposal for any help you may require during the application process for the regularization of tax debts and waiver of pension penalties, surcharges and interest. Feel free to contact us and take advantage of a free initial consultation.


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