Tax crime in Spain
Do you have to go to jail for tax evasion in Spain?
Every resident is obliged to pay the amount of tax required by law. Except in the case of legal tax planification, it is illegal to evade tax for any purpose. In minor cases, a fine is imposed, but in serious cases, a prison sentence may be imposed.
Tax evasion in Spain
Tax evasion is very common in Spain, as in many countries. The Spanish General Tax Code provides for a number of tax evasion acts, such as concealing income, declaring false information, failing to pay tax and making false accounts. These acts are illegal and can be solved by paying the tax plus a fine in less serious cases. But If the circumstances are serious, it is a criminal offense and will be punished by imprisonment.
Article 305 of the Spanish Penal Code establishes that as long as the amount of tax evasion exceeds 120,000 euros is considered as tax crime. The penalty is 1 to 5 years of imprisonment or a fine of 1 to 6 times the amount evaded.
According to the above, tax evasion can be committed in a variety of ways failure to pay tax voluntarily, filing false information, having a large amount of property or income abroad without declaring it, etc. As long as these acts result in the tax office undercharging more than 120,000 Euros, it is a criminal offence.
According to the above, the €120,000 threshold set by law does not refer to the income but rather the amount of tax underpaid.
Of course, if the amount of tax underpaid is 120,000 euros or less, then it is not considered a tax crime. If you are caught, you will only be fined and have to pay back the tax, which is not a criminal offence.
