Enforced payment

What is enforced payment?

Tax collection is the administrative function which ensures the payment of public revenue. Payment can be made within the time limit set out in article 62 (deadlines) of the Ley General Tributaria (General Tax Law), or is collected after the deadline, through settlement or a final demand ruling.

Tax collection is regulated by the Ley General Tributaria 58/2003, of 17 December, and the Reglamento General de Recaudación (General Collection Regulations), approved in the Real Decreto Legislativo (Royal Legislative Decree) 939/2005, of 29 July.

When does the period for enforced payment start?

For tax bills and tax settlements, the period for enforced payment starts on the day after the deadline set in article 62 of the Ley General Tributaria.

For self-assessments presented without payment, the period for enforced payment starts the day after the deadline for each tax set in the regulations. If this period has ended, enforced payment starts on the day after the presentation of the declaration.

When the period for enforced payment has started, the tax authorities apply a final demand ruling against the liable person's assets.

What is a final demand?

A final demand is a legal instrument required to begin procedures to settle the debt and has the same legal status as a court order to take action against the assets and rights of the taxpayer.

How does a final demand procedure start?

The taxpayer is first served the final demand, which states the amount due and the surcharges. It also states the interest for late payment and, where applicable, the costs of the procedure.

The communication advises the liable person that, if payment of the total amount due, including the 10% surcharge, is not settled within a specific period, personal assets will be seized or the guarantees will be made effective to cover the amount due, with a 20% surcharge and accrued interest for late payment until the date the tax debt is cleared.

What are the periods for payment after the deadline?

If the period for enforced payment has started and a final demand has been served, collection of the tax is during the following periods:

• If notification of the final demand is between the 1st and the 15th of the month, the period for payment runs from the day of notification until the 20th of the following month. If that day is not a working day the period ends on the first working day following.
• If notification of the final demand is between the 16th and the last day of the month, the period for payment runs from the day of notification until the 5th of the second month after. If that day is not a working day the period ends on the first working day following.

What surcharges are applied for enforced payment?

• Surcharge for enforced payment (5%): This is applied when taxes not settled before the deadline are paid before the notification of a final demand ruling.
• Reduced final demand surcharge (10%): This is applied when the tax and the surcharge are paid within the time limit for enforced payment.
• Standard final demand surcharge (20%): This is applied when payment is made after the time limit for enforced payment.

Reasons for appealing against a final demand

Appeals against a final demand are only admissible for the following reasons:

• Full payment of the debt or the right to demand payment has proscribed
• Request for deferment, payment by instalments or compensation submitted before the deadline or other reasons for suspending collection of the debt.
• Lack of notification of the tax settlement.
• Annulment of the tax settlement.
• Error or omission in the final demand, which prevents identification of the person liable or the amount demanded.

When can the final demand be suspended?

When the person liable can demonstrate a material, calculation or factual error, in determining the debt. When the debt has been paid, cancelled, offset, deferred or suspended or when the right to demand payment has proscribed. In these cases, there will be a notification of the suspension of the final demand until a ruling is pronounced.

When the assessment of the circumstances is not the responsibility of the collection agency which has received the request for suspension, the agency suspends action and must transfer the process to the competent authority. This authority must instruct the collection agency to proceed with the final demand, depending on the circumstances above.

The interested party is notified of the resolution adopted and, where necessary, of the continuation of the final demand procedure.

Execution of guarantees

Once the final demand has started, if payment of the debt is guaranteed but is not paid, the guarantee will be executed.

Kinds of guarantees:

• If the guarantee is in the form of an endorsement, deposit, insurance or another kind of personal guarantee, the guarantor is required to settle the payment, including surcharges and accrued interest, up to the total amount guaranteed. Failure to do so results in the guarantor's assets being seized by virtue of the final demand ruling concerning the obligation to pay and without need for further notification.
• If the guarantee is in the form of a mortgage, surety or in rem, constituted by assets, or rights on assets or any of the liable taxpayer's rights susceptible to forced transfer, action will be taken towards the disposal of seized assets of the same or a similar nature.
• If the guarantee is in the form of assets or rights, or assets or rights of a person or entity not the liable taxpayer, this person or entity will be notified of the outstanding amount covered by the guarantee and they will be required to offer the mentioned assets or rights to the competent tax authority, unless the amount due is paid.
• If the guarantee is a cash deposit, the deposit holder will be required to settle the payment, including surcharges and accrued interest, up to the total amount of the deposit.

Final demand procedures may continue if the guarantee has clearly become legally or economically insufficient since it was constituted, without the need to wait for the execution of the guarantee. The reasons for this decision must be clearly stated in the demand files.

Seizure

What is a legal seizure order?

The legal seizure order is the official document detailing the seizure.

All seizures must be formally documented in an order which is served to the person implicated.

Reasons for opposing a legal seizure order

• Payment of the debt or proscription of the right to demand payment.
• Final demand not served to the person implicated.
• Not complying with the regulations governing seizure.
• Suspension of collection procedures.

In what order are assets seized?

• Money in cash or bank accounts.
• Credits, commercial papers, stocks, shares and rights which can be disposed of at the time or in the short term.
• Wages, salaries and pensions.
• Immovable property.
• Interest, unearned income of all kind.
• Mercantile or industrial establishments.
• Precious metals, precious stones, jewels, silver and antiques.
• Personal property and livestock.
• Credits, stocks, shares and rights which can be disposed of in the long term.

This order can be varied at the request of the debtor.

Seizures: money in cash or bank accounts

• Cash: When cash is seized, the competent collection agency will record an order of the facts.
• Bank accounts: All accounts known by the Administration can be seized.
  • For seizure of a bank account, the balance and the number of account holders is indifferent, unless there is a contract.
  • Fixed-term accounts are seized when the date of closure is reached.
  • The minimum inter-professional wage can not be seized from a bank account where wages or pensions are transferred to.
  • The bank must retain the money for 20 days, the time necessary to settle the file and lift the seizure order.

Seizures: Credits, commercial papers, stocks, shares and rights which can be disposed of immediately or in the short term (less than 6 months)

Where the Administration is aware of the existence of stocks, shares and securities held by the liable person, a seizure order is issued which should identify the assets known by the authorities involved and incorporate a quantity that covers the total value of the debt.

Where the seizure is of stocks, shares and securities held by a credit entity, stockbroker, or any other entity, the seizure order is presented to the entity and can be extended, without previous specification, to other assets and rights belonging to the person liable, whether or not the Administration was previously aware of their existence.

Where public or private commercial papers are held or registered by a deposit taker or specialized broker and can be traded on the secondary market, the seizure order must be processed through the official market. If the assets are not held or registered, the agent must take responsibility and deliver them to the collection agency together with documentation registering their purchase or acquisition.

Seizures: wages, salaries and pensions

Seizure of wages, salaries and pensions must take into account the limits established in article 607 of the Ley de Enjuiciamiento Civil (Law on Civil Indictments), in relation to the minimum wage (SMI):

• 1º SMI: can not be seized.
• 2º SMI: 30%
• 3º SMI: 50%
• 4º SMI: 60%
• 5º SMI: 75%
• 6º and higher SMI: 90%

The seizure is detailed in the corresponding order, which is served to the debtor and the employer who is obliged to retain the amounts demanded in each case and to pay the sum into the Treasury accounts until the debt is settled.

If the debtor is the beneficiary of more than one of these payments, they are added together so that the non-seizable part can be deducted in a single operation.

Once the debt is covered, the collection agency will notify the employer of the release of all assets.

A simulation of seizable amounts of wage, salary or pension (for the calculation of the 40 hours working week) can be viewed on the website of the Agencia Estatal de la Administración Tributaria (AEAT, State Revenue Agency).

Seizures: immovable property

For seizures of immovable property, they must be the property of the debtor.

The seizure order must include the following:

• Name and surname, the registered name or full company name and tax number.
• For undeveloped land: type and name of the plot, municipal area and location (locality, boundaries, registered and real area, and codes of the Property Register and the Land Registration Agency, if available).
• For developed properties: locality, street and number, the premises and flats, surface area and codes of the Property Register and the Land Registration Agency.
• The rights the liable taxpayer holds over the seized property.
• Total amount due and the value of the seized property, itemised as initial tax, surcharges, interest and costs. It should also include a warning that interest may accrue until payment of the initial debt and costs has been settled.
• A warning that a cautionary notice of the seizure will be made in the property registry in favour of the credit entity or institution which carries out the seizure.
• Marriage status and economic regime of the marriage, if applicable.

To record the cautionary notice of the seizure and rights to the property at the property register, the collection agency must issue an order directed to the registrar in charge.

In this, a certificate must be requested stating the charges all properties are subject to. These must be detailed and include the corresponding beneficiaries as well as the current property owner's name and address.

The requirements for the order for this cautionary notice at the property register are:

• Final demand certificate and the seizure order on the property.
• Description of the liable taxpayer's rights on the seized property.
• Name and surname or company name of the owner of the property.
• Total amount of the debt (tax, surcharges, interest and costs).
• Registration in favour of the creditor.

Seizures: interest and unearned income of all kind

When the interest and unearned income becomes available in cash, the paying person or entity is notified of the seizure order and must retain this money and settle the outstanding debt.

When the unearned income to be seized corresponds to exploitation right of a work subject to Intellectual Property Law, it is considered salary.

When seizure covers the unearned income from business or commercial, industrial or agricultural activities, an administrator or auditor may be appointed.

If the unearned income is insured, the insurance company is notified of the seizure of the compensation or benefits which correspond in case of loss, which are paid to the Treasury once the loss has occurred.

Seizures: mercantile or industrial establishments

Seizures of mercantile or industrial establishments are carried out on the establishment or the home of the person or entity to which they belong.

An order is issued which details an inventory of all the existing assets and rights in each seized establishment, as well as all those seized.

Where they exist, the seizure will include the following assets and rights:

• Right to cede a contract to rent the business premises, if rented, and the installations.
• Intellectual or industrial property rights.
• Implements, machinery, furniture, tools and other instruments for production.
• Merchandise and raw materials.
• Possible compensation.

A provisional registration of seizure must be made in the Property Register.

Seizures: precious metals, precious stones, jewels, silver and antiques

Seizure of precious metals, precious stones, jewels, silver and antiques and other objects of historic or artistic value, must be made by the competent collection agency, through an order which details all items. The necessary precautions must also be taken to prevent their substitution or removal, by sealing off or other measures considered most appropriate.

Seizures: personal property and livestock

The seizure of personal property and livestock are carried out at the home of the liable person or where the assets are located.

If the assets are not deposited immediately, they are sealed off or other measures used to safeguard them.

Whenever the seizure affects assets which can be registered in the Registro de Bienes Muebles (Mobile Property Register), the collection agency will issue an order for provisional registration of seizure.

When the seizure is of cars, lorries or motorbikes, five days must be given to hand over the documentation and keys of the vehicles. If this is not complied with, the traffic authorities are ordered to confiscate, deposit and seal the assets.

Seizures: Credits, commercial papers, stocks, shares and rights which can be disposed of immediately or in the short term (more than 6 months)

Where the Administration is aware of the existence of stocks, shares and securities held by the liable person, a seizure order is issued which should identify the assets known by the authorities involved and incorporate a quantity that covers the total value of the debt.

Where the seizure is of stocks, shares and securities held by a credit entity, stockbroker, or any other entity, the seizure order is presented to the entity and can be extended, without previous specification, to other assets and rights belonging to the person liable, whether or not the Administration was previously aware of their existence.

Where public or private commercial papers are held or registered by a deposit taker or specialized broker and can be traded on the secondary market, the seizure order must be processed through the official market. If the assets are not held or registered, the agent must take responsibility and deliver them to the collection agency together with documentation registering their purchase or acquisition.

Deferment or paying debt by instalments after the deadline

Tax debts which have not been paid by the deadline can be deferred or paid by instalments, by prior request, when the economic-financial situation of the debtor does not allow payment of the debt, temporarily, before the deadline.

Debts paid by instalments or deferred must be covered by a guarantee.

When the total amount of the debt to be paid by instalments or deferred is guaranteed with an endorsement from a bank or a specialised guarantee company or with a guarantee insurance/surety certificate, the interest which can be demanded for late payment is that legally applicable until the date of payment.

Requests after the deadline for payment can be presented until notification of the decision to dispose of seized assets. The Tax Agency can initiate or continue legal proceedings during processing of instalments or deferred payment, but disposal of assets will be suspended until notification of a resolution rejecting deferred payment or payment by instalments.

Procedure for collecting taxes arising from co-responsibility

Type of responsibility:

• Joint responsibility
• Subsidiary responsibility

Joint responsibility: Who is jointly responsible for a debt?

• Those who cause or are actively involved in tax offences.
• Those who have a share in or are co-owners of the following: recumbent inheritances, joint assets and other entities which, without legal status, constitute an economic unit or independent asset, subject to taxation.
• Those who inherit any form of ownership or the exercise of economic exploitation or activity, are subject to tax obligations incurred by the previous owner and those deriving from the activity
• Those jointly responsible for a pending tax payment, up to the value of assets or rights which may have been seized or disposed of by the tax agency, include the following individuals or entities:
  • Those who cause or are involved in concealing or transmitting assets or rights of the person liable to pay, in order to prevent action being taken by the tax authorities.
  • Those who, deliberately or negligently, do not comply with seizure orders.
  • Those who, aware of the seizure order, precautionary measures or the constitution of a guarantee, collaborate or agree to lift the seizure or release assets or rights subject to a precautionary measure or the object of a guarantee.
  • Those individuals or entities with which the debtor’s assets are deposited who, once notification of the seizure has been received, collaborate or agree to lift the seizure.

Joint responsibility: procedure

• No previous declaration of bad debt of the principal debtor is required.
• A period for presenting allegations must be given to the liable persons.
• In the case of shareholders, the amount of the debt is based on the coefficient of participation of each calculated share.
• Tax debt covered: amount of the full debt, excluding tax sanctions and traffic fines.

Subsidiary responsibility: Who are responsible as subsidiaries for a debt?

• The administrators, whether or not legally appointed, of legal entities which, having committed tax offences, have not taken the appropriate steps incumbent upon them to comply with tax obligations and duties, and who consented to non-compliance by their superiors or adopted agreements which allowed the offence. Their responsibility also includes any sanctions.
• The administrators, whether or not legally appointed of legal entities which have ceased activity and not taken the necessary steps to pay any pending taxes at the time of ceasing, or who have adopted agreements or measures resulting in the lack of payment.
• Members of the insolvency agencies and liquidators of companies and entities in general who have not taken the necessary action for full compliance of tax obligations for payment, attributable to the respective parties liable for tax. They must respond as administrators, when they have responsibility for administration, to the tax debts and sanctions which may be applicable.
• Those who acquire assets legally subject to payment of the tax debt.

Subsidiary responsibility: procedure

• Previous declaration of bad debt of the principal debtor is required.
• A period for presenting allegations must be given to the liable persons.
• Tax debt covered: amount of the full debt, excluding tax sanctions and traffic fines.
• In the case of those who acquire property legally subject to payment of the tax debt, related to IBI (Property Tax) the amount due is only the tax itself stated on the outstanding tax bills.

What is the period of time available for paying the debt?

The period of time for payment for joint or subsidiary responsibility is as established for payment before the deadline.

If the payment is not made within this time period, a final demand is sent out, and the corresponding surcharge for enforced payment is added, with the corresponding interest for overdue payment.

Procedure for collecting taxes from beneficiaries

Type of beneficiary:

• Beneficiaries of individuals (heirs)
• Beneficiaries of legal entities

Beneficiaries of individuals

On death, any pending tax obligations are transmitted to heirs, without prejudice to civil law dealing with inheritance.

These tax obligations should be transmitted to the heirs in the same conditions established for heirs when the inheritance is transmitted through full or proportional legacies.

Sanctions are not transmitted, nor the obligation of the deceased person, unless an agreement for derivation of responsibility was notified before death.

The fact that the tax debt was not settled at the time of death of the taxpayer does not prevent transmission to the heirs of the amount due. In this case, proceedings can be continued with any of the heirs, and all interested parties who figure in the tax file should be notified of the amount to be settled.

While the inheritance is in probate, compliance with the tax obligations of the person liable corresponds to the executor of the probate.

All administrative actions to quantify, determine and settle the tax obligations should be carried out or continued with the probate executor. If, at the end of the process, the heirs remain unknown, tax payment is settled by the probate estate.

The tax obligations referred to in the previous paragraph, and those which can be transmitted as a result of the death, can be settled by charging the assets of the incumbent inheritance.

• No previous declaration of bad debt of the principal debtor is required.
• No requiere trámite de audiencia al responsable.
• Tax debt covered: amount of the full debt, excluding sanctions.
• The period of time for payment by the beneficiary is as established for enforced payment.

Beneficiaries of legal entities

When a society or entity is dissolved or liquidated, the procedure for tax collection continues with the partners, shareholders or co-owners, once it is no longer registered as a legal entity.

When a foundation is dissolved or liquidated, the procedure for tax collection continues with those who are beneficiaries of its assets and rights.

The tax authorities may turn to any of the partners, shareholders, co-owners, beneficiaries, or against all simultaneously or successively, to demand payment of the tax debt and pending costs.

In cases where the law limits capital liability of the partners, shareholders or co-owners of dissolved and liquidated legally constituted societies and entities, the pending tax obligations are claimed from these persons, who have an obligation to pay the full amount of their corresponding part.

In cases of unlimited legal liability of the partners, shareholders or co-owners of dissolved and liquidated legally constituted societies and entities, the pending tax obligations are claimed from these persons, who have a joint obligation to settle the full debt.

The fact that the tax debt was not settled at the time of extinction as a legally constituted society or entity does not prevent transmission of the tax debt to the beneficiaries, and procedures can be continued against any one of them.

In cases of expiry or dissolution where societies are not liquidated, their pending tax liabilities must be transferred to the individuals or entities that succeed or are beneficiaries of the operation. This regulation is also applicable to cases of overall transfer of assets and liabilities of a company.

In cases of dissolution of foundations or entities referred to in section 4 of article 35 of the Ley General Tributaria (General Tax Law), their pending tax liabilities are transferred to the beneficiaries of the assets and rights of the foundations or to the entity shareholders or joint owners.

Any applicable sanctions on offences committed by companies and entities referred to in this article can be demanded from their beneficiaries up to the limit of the outstanding tax payment and under the conditions established in the previous sections.

• No previous declaration of bad debt of the principal debtor is required.
• A period for presenting allegations is not required.
• Tax debt covered: amount of the full debt, excluding sanctions.
• The period of time for payment by the beneficiary is as established for enforced payment.

Disposal of assets and auction

How are assets disposed of?

Assets or seized rights are disposed of by:

• Public auction
• Putting out to offer
• Direct adjudication

The normal procedure for adjudication of seized assets is by public auction, when there is no other specific form of adjudication applicable.

How are seized assets valued?

The competent collection agency must value the seized assets at market price in agreement with the normal criteria for valuation.

The valuation is notified to the liable taxpayer who, in case of discrepancy, may present an alternative valuation carried out by an adequate expert, within 15 days from the day after notification.

If the difference between the valuations, of the total sum of the values assigned to each asset, does not exceed 20%, the person liable is called on to resolve the differences in the valuation. If an agreement is reached, the agreed value should be registered and will be that applicable.

When an agreement is not reached between the two parties, the collection agency should request a new valuation by an adequate expert, within a maximum 15 days.

This valuation should be within the limits of those previously given, and will be that finally applied.

Auction

The pertinent collection body must agree the alienation through auctioning of assets under seizure considered sufficient to meet the pursued funding and the costs of the procedure. As far as possible, it should avoid selling assets with a noticeable higher cost to funding, without prejudice that could later allow alienation for those needed.

The alienation agreement must include identifying data of the obligor, the assets auctioned, and the type of auction. The agreement will also include the deadline where offers following the terms in rule 104 (2) of Reglament general de recaptació can be presented. Furthermore, it will also state that offers will be presented electronically in Portal de Subastas de la Agencia Estatal Boletín Oficial del Estado.

The alienation agreement must be notified to the payment obligor; their partner, if these are matrimonial assets or main residence; mortgagees and pledgees and, in general, owners of rights recorded in the corresponding public register, subsequently to the right of public finance, which may appear the certificate of encumbrances issued for this purpose; depositaries, if alien to the Administration, and if any, co-owners and third owners of the assets to be auctioned.

Assets under seizure can be released at any time before the emission of the certificate of the adjudication agreement or granting of the sale public deed, through the full payment of the debt.

After the notification of the auction agreement, there will be a minimum period of 15 days before its realisation. Auctions will be announced in  Boletín Oficial del Estado and will be available 24 hours after the announced is published.

FAQs - Frequently asked questions

1. Once the deadline has passed, can I defer payment of a debt or pay it in instalments?

2. How come a demand is being made for me to pay a tax, with surcharges and interest, if I have not received any previous notification of the debt?

3. How is a final demand notified?

4. How can I appeal against a final demand?

5. What is the time limit for appealing against a final demand?

6. What happens if I don’t pay once I have received a final demand?

7. What assets can be seized?

8. Must I pay a surcharge if I pay a tax just one day after the deadline?

9. I am due an income tax rebate, but the tax authorities have informed me that I will only receive part of this as the rest has been seized by BASE. Can they do this?

10. I have received a letter from my bank informing me that some money has been seized by BASE and I don’t know why. What should I do?

11. My employer has informed me that part of my wage has been seized, for debts owed to BASE. How much of my wage can be seized?

12. I have received notification from BASE that they are proceeding with seizure of part of my immovable property. What should I do?

13. I want to make an offer for an item being auctioned by BASE. How do I do this?

14. BASE has seized a property of mine and I do not agree with their valuation. What should I do?

1. Once the deadline has passed, can I defer payment of a debt or pay it in instalments?

Payment of a debt can be deferred or it can be paid in instalments at any time after the deadline but it must be before the procedure to dispose of any seized assets starts.

The request for either of these forms of debt payment can be presented at any of the BASE offices.

Consult the transaction on deferment or payment in instalments after the deadline.

2. How come a demand is being made for me to pay a tax, with surcharges and interest, if I have not received any previous notification of the debt?

Periodical tax bills such as vehicle tax, taxes for business activity and immovable property, and some council taxes, are generally due around the same date every year.

The Administration is not obliged to notify the taxpayer by certified letter, as the dates for payment are published in the official provincial gazette and on local council and BASE notice boards.

The bill has no surcharge if paid in full before the published deadline.

After the deadline, and before receiving a final demand, a surcharge of 5% is applied.

Payment after you have received the final demand, and according to the time limits set out in article 62.5 of the Ley General Tributaria (General Tax Law), carries a 10% surcharge. After this period, there is a 20% surcharge and interest due for late payment, calculated from the day after the initial deadline.

Consult Enforced collection for more information.

3. How is a final demand notified?

Notification of a final demand is set out in article 109 and following, in the Ley General Tributaria (General Tax Law).

Any means which ensures there is a record of receiving the notification are used, with the date, identify of the person who accepts it and the content of the notification.

The address the notification is sent to is the home or address indicated by the liable party or their agent, or, if this is not available, any appropriate address.

Refusing to accept the notification does not make it invalid nor does it stop the procedure, as this is recorded in the file, and notification is considered to have been carried out.

When it is impossible to notify the taxpayer of the final demand, for reasons the Administration is not responsible for, and after two attempts, the person is summoned to receive the notification. This summons is published once in the Boletín Oficial de la Provincia (Official Provincial Gazette), and on the notice boards at the BASE-Gestió d’Ingressos offices, on 5 or 20 of each month, if they are working days, or else the following working day.

If the taxpayer does not appear within 15 days, including non-working days, from the day after the publication in the Boletín Oficial de la Provincia, the final demand is legally understood to have been notified from the day following this 15 day time limit.

Consult Enforced collection for more information.

4. How can I appeal against a final demand?

An appeal against a final demand can only be made for the following reasons, set out in article 167 of the Ley General Tributaria (General Tax Law):

• Payment of the debt.
• Prescription of the right to demand payment.
• Deferred payment.
• Final demand not served, or its annulment or suspension.
•  Error or omission in the demand, which prevents identification of the debt or debtor.

Consult:

• For what reasons can a final demand be opposed?
• Transaction Make an appeal against a final demand.

5. What is the time limit for appealing against a final demand?

An appeal against a final demand can be made to the treasurer of BASE-Gestió d’Ingressos, within one month from the day following notification of the final demand.

6. What happens if I don’t pay once I have received a final demand?

Once a final demand is served, if the payment has not been made within the time limit set out in article 62.5 of the Ley General Tributaria (General Tax Law), seizure of assets and rights can be ordered, to cover the total debt.

The time limit for paying a final demand depends on the date enforced payment was notified:

• If the date was between 1 and 15 of the month, the final demand must be paid by the 20 of the same month.
• If the date was between 16 and the last day of the month, the final demand must be paid by the 5 of the next month.

If the final demand is not paid by these dates, the Administration has the right to seize the debtor’s assets.

7. What assets can be seized?

If payment of the debt is guaranteed, the guarantee will first be executed, if not, seizure of assets is in the order set out in article 169 of the Ley General Tributaria (General Tax Law):

• Money in cash or in bank or credit accounts.
• Credits, commercial papers, stocks, shares and rights which can be disposed of at the time or in the short term.
• Wages, salaries and pensions.
• Immovable property.
• Interest, unearned income of all kind.
• Mercantile or industrial establishments.
• Precious metals, precious stones, jewels, silver and antiques.
• Personal property and livestock.
• Credits, stocks, shares and rights which can be disposed of in the long term.

8. Must I pay a surcharge if I pay a tax just one day after the deadline?

Yes, these charges are due even when payment is one day late, in accordance with article 161.4 of the Ley General Tributaria (General Tax Law). Surcharges and interest for late payment are calculated according to the start of the enforced payment.

Consult Enforced collection for more information.

9. I am due an income tax rebate, but the tax authorities have informed me that I will only receive part of this as the rest has been seized by BASE. Can they do this?

BASE can seize AEAT (Tax Office) tax rebates for enforced payments owed to certain councils which have tax collection delegated to them.

The amount seized is the total amount of the debt due.

If this amount is more than the rebate, the whole rebate will be seized and figure as part payment of the debt in the taxpayer’s file opened by BASE.

If the amount is less than the tax rebate due, only that needed to cover the debt will be seized.

10. I have received a letter from my bank informing me that some money has been seized by BASE and I don’t know why. What should I do?

The BASE Unidad de Embargo de Cuentas (section for accounts seizures) is responsible for seizures of amounts in bank accounts for overdue tax payments, owed to certain councils which have tax collection delegated to BASE.

The bank must give you the number of the file or seizure order. If you take this number to any BASE office, you will receive information on the debts, the situation of the enforced payment procedure, the time limits for paying the debts and any other information related to the file.

The bank account is not blocked, as the amount for the seizure is all that is retained.

Consult Seizures for more information.

11. My employer has informed me that part of my wage has been seized, for debts owed to BASE. How much of my wage can be seized?

A full month’s wage, salary or pension can be seized, or month by month, taking into account the limits established in article 607 of the Ley de Enjuiciamiento Civil (Law on Civil Indictment), in relation to the minimum wage.

Go to any BASE office for more information on debts or the enforced payment procedure file.

Consult Seizures for more information.

12. I have received notification from BASE that they are proceeding with seizure of part of my immovable property. What should I do?

The BASE Unidad de Embargo de Inmuebles (section for property seizures) is responsible for seizures of property for overdue tax payments, owed to certain councils which have tax collection delegated to BASE.

You need to go to the Unidad de Embargo de Inmuebles for information on your enforced payment file.

Consult Seizures for more information.

13. I want to make an offer for an item being auctioned by BASE. How do I do this?

There are two ways to make a bid in an auction:

• A bid can be presented in a sealed envelope from the time of publication of auction up to one hour before the auction takes place:
  • You can go to the Servicios Centrales (Central Services) of BASE (department of enforced collection) and register a written offer (in a sealed envelope) with the following information:
    • Name, surname and CIF/NIF number (identification or tax number).
    • Identification of the auctioned item and the amount offered.
    • Proof of payment of a 20% deposit of the price published in the notification of the auction, transferred to the BASE current account, or a cheque made out to BASE.
• A bid can be made at the auction:
  • You can go to the auction and follow the instructions given by the auctioneers.

Consult Disposal of assets and auctions for more information.

14. BASE has seized a property of mine and I do not agree with their valuation. What should I do?

If you do not agree with the valuation you have been notified of, you can present an alternative. This should be taken to the Unidad de Bienes Inmuebles, Departamento de Recaudación Ejecutiva (Immovable Property Section, Department of Enforced Collection) at BASE central services, within 15 days of notification of the valuation.

Consult Disposal of assets and auctions for more information.

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