Tax inspections
Both the State Tax Agency and the Autonomous Regional Tax Agencies have the duty to control that the information and taxes declared by taxpayers are in accordance with the law.
Once the inspection procedure has been initiated, it is of vital importance to check that the administration complies with all the legal procedures for reviewing it, that it requests the necessary documentation and that the taxpayer’s rights are not violated in any way.
Our firm is specialised in defending this type of inspections obtaining a success rate and a considerable reduction of the tax bill. We also provide a second opinion service, so if you already have a tax advisor and you consider it appropriate, we can collaborate with them, with the aim of jointly defending your interests.
FAQs
What penalties and costs does a hospitality business in Spain face if it cannot prove how tips were shared out among staff?
If the business cannot prove the tips were paid to staff, the Spanish Tax Agency (Hacienda) may treat them as sales: 10% VAT, Impuesto sobre Sociedades (Spanish corporation tax), interest and a penalty of 50% to 150%. If the distribution is proven, the cost is limited to IRPF withholding (Spanish income tax) and Social Security contributions, which are reduced by voluntarily correcting the position before any formal request from the authorities.
Last updated: 20/10/2026