Receiving a notification of seizure from the Tax Agency is one of the situations that generates the most doubts among taxpayers. Many citizens are unaware of what the Tax Agency can seize, if there is an order to do so, or if there are assets that the law protects against this procedure.
Although the Administration has broad powers to collect tax debts, it cannot seize any asset without limitations. The General Tax Law, the General Collection Regulation, and the Civil Procedure Law establish both the procedure that the Tax Agency must follow and the assets and income that remain protected to guarantee a vital minimum for the debtor.
When the Tax Agency can seize assets
The Tax Agency cannot seize directly when the deadline for paying a tax expires. For a seizure to be initiated, the debt must have entered into executive period, once the voluntary payment deadline has ended and after the corresponding enforcement order.
If the taxpayer continues to not satisfy the debt, the Tax Agency can initiate the procedure to seize sufficient assets and rights to cover the outstanding amount, along with the surcharges, interests, and costs that apply.
What assets the Tax Agency can seize
The regulations allow the Tax Agency to seize practically any asset or right with economic content belonging to the debtor. Among the assets that can be subject to seizure are bank accounts, salaries and pensions —within legal limits—, tax refunds, vehicles, homes, shares, investment funds, or credit rights against third parties.
The purpose of the procedure is to obtain the necessary amount to satisfy the outstanding tax debt, ensuring that the seizure is proportionate.
The Tax Agency must respect a seizure order
The General Tax Law establishes a preferential order for the practice of seizures, although this can be modified when it is more effective for collection or when the taxpayer themselves proposes another order that also guarantees the payment of the debt.
In general, the Administration usually targets the money existing in bank accounts and other liquid assets first, before resorting to the seizure of real estate or other assets whose realization is more complex.
The salary and pension cannot be fully seized
One of the main guarantees provided by law affects salaries and pensions.
The amount equivalent to the Minimum Interprofessional Wage (SMI) is exempt from seizure, so the Treasury cannot appropriate that part of the taxpayer's income. From that amount, the law establishes different percentages of seizure that progressively increase based on the amount received.
This protection aims to ensure that the debtor retains a minimum income to meet their basic needs.
Can the Treasury seize a home or a car?
Yes. Both real estate and vehicles can be subject to seizure when they are necessary to satisfy a tax debt.
However, the Administration usually tries to collect first through more easily realizable assets, such as money deposited in bank accounts or certain credit rights. Only when those assets are insufficient can the seizure of real estate, vehicles, or other property be resorted to.
In the event of a seizure, these assets may be sold through the legally established procedures to obtain the necessary amount to settle the debt.
What assets are protected from seizure
The legislation also establishes a series of exempt assets intended to preserve minimum living conditions for the debtor and their family.
Among them are the salary equivalent to the SMI, the furniture and essential household items, clothing, food, and other indispensable goods for subsistence. Likewise, the law protects certain instruments necessary for the exercise of a profession or trade, provided that the circumstances established in the regulations are met.
These limitations seek to prevent the enforcement procedure from leaving the taxpayer without the basic resources to develop their personal or professional life.
It can also offset tax refunds
In addition to the seizure of assets, the Tax Agency can automatically offset a tax refund against the taxpayer's outstanding tax debts.
This means that if a tax return results in a refund and the citizen has a debt with the Treasury, the Administration can apply that amount to the payment of the debt before making any deposit.
The taxpayer can challenge the procedure
The seizures carried out by the Tax Agency are not unassailable. The taxpayer can appeal the enforcement order or the seizure proceedings when they believe that they do not comply with the regulations or when the legally established causes are present.
Likewise, they can also request deferrals or installments of payment when they meet the requirements established by tax legislation.
Knowing what the Tax Agency can seize and what assets are protected allows taxpayers to better understand their rights and obligations in an enforcement procedure and act quickly if they believe that the seizure has not been carried out in accordance with the law.