Seizure limits do not apply to compensation or benefits

The protection of income against seizures for tax debts has a limited scope. The Dirección General de Tributos (DGT) has specified which economic concepts are protected by the seizure limits established in the Ley de Enjuiciamiento Civil (LEC) and which fall outside such protection.

What the DGT has resolved

The Administration's criteria establish that the seizure limits provided for in Article 607 of the LEC apply exclusively to those perceptions that have the status of salary, in accordance with what is defined in Article 26 of the Workers' Statute.

This implies that not all amounts received by a worker or pensioner enjoy the same protection against a seizure order. The DGT specifies that the following concepts are not considered salary and, therefore, are not subject to the protection limits of the LEC:

• Compensation for dismissal or suspensions.
• Allowances for expenses.
• Social Security benefits.
• Compensation for transfers.

Furthermore, the resolution indicates that to determine the Minimum Interprofessional Wage (SMI) applicable in the calculation of these limits, one must refer strictly to current labor regulations.

What it means for you

For individuals, this distinction is fundamental when facing enforcement proceedings for debts with the Administration. If you receive amounts that do not qualify as salary, such as dismissal compensation or a Social Security benefit, the Administration could seize the entirety of those sums without respecting the protection tiers that do apply to your monthly payroll.

Companies, in their role as payers, must correctly identify the nature of each concept to apply seizure withholdings only to the amounts that have the status of salary, avoiding errors in the execution of judicial or administrative orders.

What is advisable to do

In the event of a seizure order, it is necessary to distinguish the legal nature of each income received. It is essential to verify whether the amounts subject to withholding meet the definition of salary under the Workers' Statute or if they are concepts exempt from LEC protection. It is recommended to assess each particular situation to determine the real scope of the protection of your income.