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Regularise Before the AEAT Acts: Criminal Exemption and Minimum Surcharges

Advisory and representation in voluntary tax regularisation before criminal proceedings or AEAT investigation: criminal law exemption under Art. 252 LGT, late-filing surcharges without penalties, confidential handling.

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Our approach

How we work

01

Confidential Situation Assessment

We analyse the situation in strict confidence — the tax adviser's professional privilege is protected by law — to determine whether the tax irregularity is eligible for voluntary disclosure, in which tax years it has occurred, the approximate size of the tax liability and whether circumstances exist that could give rise to criminal liability (unpaid tax exceeding €120,000 per tax and per year). This phase typically takes 24–48 hours and is the prerequisite for any subsequent decision.

02

Liability Quantification and Surcharge Analysis

We calculate with precision the tax due, accrued interest and late-filing surcharges under Article 27 LGT. Surcharges are calculated on the unpaid principal: 1% per full month of delay in the first 12 months, then 15% from month 13, always without any additional penalty. The interest rate is 4.0625% per annum (2026 rate). This analysis allows a direct comparison of the cost of disclosing now versus the estimated cost of a forced regularisation initiated by the AEAT.

03

Disclosure Strategy Design

We determine the scope of the regularisation: which taxes, which years, which amounts. In complex situations — multiple taxes affected, partially time-barred years, foreign assets — the strategy includes the optimal sequencing of return filings, coordination with information reporting obligations (Form 720, Form 721) and, where appropriate, notification to regulators other than the AEAT (Bank of Spain, CNMV). Where criminal risk exists, criminal counsel is involved at this stage.

04

Return Filing and Closure

We prepare and file the necessary supplementary or late returns, manage payment of the resulting liability and obtain, where applicable, documentary evidence of the disclosure that confirms to the AEAT that the action was spontaneous. Once regularised, we prepare an internal residual risk report and compliance recommendations to prevent recurrence.

The challenge

When a company or individual discovers they have under-declared — undisclosed income, false invoices, undeclared foreign accounts, unreported crypto assets — the instinctive reaction is to wait and see whether the Spanish Tax Agency (AEAT) detects the problem. That calculation is profoundly wrong. If the AEAT or the Public Prosecutor act first, voluntary disclosure is no longer available and the taxpayer loses the criminal law exemption of Article 252 LGT. At that point, a tax debt that could have been resolved with a 10–15% late-filing surcharge and no penalty becomes a file with criminal exposure for tax fraud, administrative sanctions of 50–150% of the underpaid amount and, where the unpaid tax exceeds €120,000, criminal proceedings with custodial sentences of one to five years.

Our solution

BMC coordinates the analysis of the tax position, quantification of the liability, disclosure strategy and filing of the necessary supplementary returns to ensure the regularisation meets the requirements of Article 252 LGT: complete, spontaneous and prior to any administrative or criminal action. Where the situation carries criminal risk, we work alongside specialist criminal lawyers to ensure the tax regularisation is also effective as a criminal law defence.

When a company or individual discovers a tax irregularity — undisclosed income, undeclared foreign accounts, unreported crypto assets, false invoices — the window for voluntary tax disclosure under Article 252 of Spain’s General Tax Law (LGT) is both the most valuable and the most time-sensitive tool available. BMC coordinates the full voluntary tax disclosure process: from the initial confidential assessment through quantification, strategy and filing, ensuring the regularisation meets the statutory requirements and eliminates both administrative and criminal exposure.

What Article 252 LGT voluntary tax disclosure does

Article 252 LGT provides that a taxpayer is exempt from criminal liability for tax fraud (Article 305 CP) if they regularise their tax position completely and spontaneously before the Spanish Tax Agency (AEAT) or the Public Prosecutor initiates any investigation or proceeding. The mechanism is simple in structure: file the supplementary return, pay the resulting tax with accrued interest and the late-filing surcharge, and obtain full exemption from criminal prosecution — regardless of the amounts involved. The financial cost is the tax itself, plus interest at 4.0625% per annum and a surcharge of 1% per month for the first 12 months (maximum 12%) or 15% from month 13, always without any additional administrative penalty.

The criminal threshold and its implications

Where the unpaid tax exceeds €120,000 per tax and per year (Article 305 CP), the irregularity constitutes the criminal offence of tax fraud, with custodial sentences of one to five years, fines of one to six times the shortfall, and disqualification from public contracts and subsidies. Above €600,000 the sentence rises to two to six years with additional aggravating factors. The Article 252 LGT voluntary disclosure eliminates criminal liability entirely — provided it is made before any investigation starts. There is no minimum or maximum: the mechanism works for a €121,000 shortfall and for a €5M shortfall alike, provided the disclosure is complete and spontaneous.

Situations where voluntary disclosure is appropriate

  • Undisclosed business income or revenues: cash sales not invoiced, income booked as loans or shareholder contributions
  • False invoices: deductible expenses backed by fictitious or inflated invoices
  • Foreign accounts and assets not declared on Form 720: bank accounts, investment portfolios, real estate held through foreign structures
  • Crypto assets not reported on Form 721 or not included in IRPF/IS returns
  • Dividend income from foreign companies not declared in Spain
  • Shareholder loans recorded as such in the accounts but economically equivalent to undisclosed salary or dividend distributions

Coordination with criminal counsel

Where the quantified tax shortfall approaches or exceeds the €120,000 criminal threshold, voluntary disclosure requires coordination between the tax adviser and a criminal lawyer specialised in financial crime. The tax adviser manages the calculation, strategic sequencing and filing; the criminal lawyer ensures that the communication with the AEAT does not generate any adverse admissions and that the regularisation is structured to constitute an effective criminal defence. BMC has established working relationships with leading criminal defence practices for this purpose.

After disclosure: preventing recurrence

A successful voluntary disclosure closes the liability for the regularised period, but the AEAT will apply enhanced scrutiny to the taxpayer’s subsequent returns. BMC prepares a post-disclosure compliance plan: internal controls for expense documentation, transfer pricing documentation for intragroup transactions, Form 720/721 review for the current year and a tax risk map identifying areas requiring monitoring.

Track record

The experience behind our work

We identified a series of accounting irregularities in the 2020–2023 financial years involving unpaid tax above the criminal threshold. BMC coordinated the complete regularisation in three weeks: analysis, quantification, strategy with criminal counsel and filing of the supplementary returns. The matter closed with no administrative proceedings and no criminal risk. The alternative would have been to wait for the AEAT to discover it.

Industrial group (confidential)

Experienced team with local insight and international reach

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Service Lead

Ana Garcia Montoya

Partner - Tax Division

Master in Taxation, CEF Law Degree, University of Barcelona
FAQ

Frequently asked questions on voluntary tax disclosure in Spain

Article 252 of Spain's General Tax Law (LGT) provides that a person is exempt from criminal liability for tax fraud (Article 305 of the Criminal Code) if they regularise their tax position before being notified of the start of verification or investigation proceedings by the AEAT or the Public Prosecutor. The regularisation must be complete — covering all affected taxes and tax years — and spontaneous, meaning not prompted by prior administrative action. Where these requirements are met, filing a supplementary return with payment of the resulting liability eliminates criminal exposure and substitutes any administrative penalty with the late-filing surcharge under Article 27 LGT.
The criminal exemption ceases to be available from the moment the taxpayer is notified of the start of verification proceedings by the AEAT — whether an inspection, limited audit or data verification — or from the moment the Public Prosecutor or a court initiates proceedings for tax fraud. Acting promptly on discovery of the irregularity is essential: even without any AEAT communication, an anonymous complaint or ex officio action can trigger proceedings without warning.
The cost of voluntary disclosure is: the unpaid tax (the amount that should have been declared), plus accrued interest at the applicable rate (4.0625% per annum in 2026), plus the late-filing surcharge under Article 27 LGT. The surcharge is 1% per full month of delay for the first 12 months (maximum 12%) and 15% from month 13, in both cases without any additional penalty. By contrast, if the AEAT regularises ex officio, the tax due carries accrued interest plus a minimum administrative penalty of 50% of the shortfall (serious infraction), potentially rising to 150% with aggravating factors, in addition to criminal exposure above €120,000.
Where the tax shortfall exceeds €120,000 per tax and per year, the irregularity constitutes tax fraud under Article 305 of the Criminal Code, with custodial sentences of one to five years, fines of one to six times the shortfall and disqualification. However, even in this case voluntary disclosure under Article 252 LGT remains available and produces full exemption from criminal liability, provided it is made before any investigation is initiated. Above €600,000 the custodial sentence rises to two to six years.
Article 252 LGT applies to all taxes administered by the AEAT and the Regional Tax Authorities: Corporate Income Tax (IS), VAT, Personal Income Tax (IRPF), withholding taxes, Wealth Tax (IP), Inheritance and Gift Tax (ISD) and any other state or regional tax. The regularisation must be complete: it is not valid to disclose only part of the liability. If the irregularity affects both IS and VAT simultaneously, supplementary returns must be filed for both taxes.
Form 720 is an information return — not a tax payment — so late filing generates formal penalties rather than a tax debt. However, the existence of undisclosed foreign assets typically implies irregularities in the underlying taxes (IRPF, IS or Wealth Tax) that are eligible for voluntary disclosure under Article 252 LGT. A complete regularisation of undisclosed foreign accounts involves: filing Form 720 late, filing supplementary returns for the affected taxes (income from foreign capital, undisclosed income) and paying the resulting tax with interest and surcharge.
Undisclosed crypto assets generate obligations under both Form 721 (information return on crypto assets held abroad, mandatory from 2024) and the underlying taxes: IRPF on capital gains or investment income, IS if the holder is a company. Voluntary disclosure of crypto assets follows the same structure: late filing of Form 721, supplementary IRPF or IS returns for the affected years, and payment with surcharge and without penalty. This is a priority AEAT enforcement area from 2026 onwards, with DAC8 automatic exchange of information between EU tax administrations coming into full effect.
A supplementary IRPF return (Article 119 LGT) is a mechanism available to any individual to correct a personal income tax return where less was declared than required. It generates the Article 27 LGT surcharge but normally has no criminal implications because the typical personal tax shortfall does not reach the €120,000 criminal threshold. Voluntary disclosure under Article 252 LGT applies when the shortfall could or does exceed that threshold and explicit criminal law protection is needed. Although the formal mechanism is the same (supplementary return with payment), coordination with criminal counsel and prior strategic analysis are essential when criminal risk exists.
First step

Start with a free diagnostic

Our team of specialists, with deep knowledge of the Spanish and European market, will guide you from day one.

Voluntary Tax Disclosure in Spain (Art. 252 LGT)

Tax

First step

Start with a free diagnostic

Our team of specialists, with deep knowledge of the Spanish and European market, will guide you from day one.

25+
years experience
5
offices in Spain
500+
clients served

Request your diagnostic

We respond within 4 business hours

Or call us directly: +34 910 917 811

First step

Start with an initial diagnosis

Our team of specialists, with deep knowledge of the Spanish and European market, will guide you from day one. No cost, no obligation.

25+

years of experience

15

offices in Spain

500+

clients served

Request your diagnosis

We respond within 4 business hours

Or call us directly: +34 910 917 811

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