How are local tax decisions challenged in Spain?

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Local taxes in Spain follow a specific review system. The applicable route depends on which authority issued the decision and whether the municipality is governed by the special regime for large-population municipalities.

Local tax decisions issued by a local authority

As a general rule, a reconsideration appeal (recurso de reposición) must be lodged with the local authority that issued a decision applying or enforcing a local tax. The time limit is one month from the day after express notification or, for publicly displayed tax rolls or registers, from the day after the public display period ends. The appeal must generally be decided within one month; if no decision is issued within that period, it is deemed dismissed for the purpose of pursuing the challenge. A second reconsideration appeal cannot be lodged against the decision.

In municipalities covered by Title X of Law 7/1985 (large-population municipalities), the reconsideration appeal is optional. If the decision falls within its jurisdiction, the taxpayer may go directly to the municipality’s specialised body for economic-administrative claims. Alternatively, the taxpayer may first file a reconsideration appeal and then challenge that decision before the municipal body. The municipal body’s decision ends the administrative review process.

Once the administrative route has been exhausted, the case may be brought before the competent contentious-administrative court. As a general rule, challenges to decisions of local authorities fall within the jurisdiction of the Juzgados de lo Contencioso-administrativo (Administrative Courts of First Instance), subject to statutory exceptions. One should not assume that every such claim goes to a High Court of Justice.

Cadastral and IAE census decisions

Some decisions follow a state economic-administrative route because they arise from state tax administration rather than the municipality’s assessment or collection of the tax. These include cadastral decisions for which the law provides that route, such as valuation schedules, and decisions on the census administration of the Tax on Economic Activities (Impuesto sobre Actividades Económicas, IAE) made by the State Tax Administration or by an authority acting under delegated powers. The municipality’s later administration and assessment—for example, an IBI (property tax) assessment based on a cadastral value—must be distinguished from the cadastral decision that determines that value.

The specific decision, the authority that issued it and the municipality’s applicable regime should therefore be identified before choosing the appeal route or calculating a deadline. (Local Treasury Law, Royal Legislative Decree 2/2004, section 14; Law 7/1985, sections 108 and 137; Contentious-Administrative Jurisdiction Law 29/1998, section 8; Real Estate Cadastre Law, Royal Legislative Decree 1/2004, section 29; General Tax Law 58/2003, sections 226–227; Royal Legislative Decree 2/2004, section 91.)