How does asset seizure begin? Which assets can be seized?

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Short answer: if the enforcement order payment deadline expires unpaid, the tax authority may attach the debtor’s assets through the enforcement procedure. Each attachment is recorded in a seizure notice (diligencia de embargo); the law does not require a separate “seizure order” before every attachment.

When attachment may begin

Under Article 167.4 of the General Tax Act (LGT), assets may be attached after the payment deadline in Article 62.5 LGT expires without payment. If the debt is secured, the guarantee is generally enforced first. The authority may instead attach and sell other assets first if the guarantee is disproportionate to the debt or the debtor asks for this and identifies sufficient assets (Article 168 LGT).

Amount and order of attachment

Attachment must be proportionate and sufficient to cover unpaid principal, interest, executive surcharges and enforcement costs. It must not extend to assets declared exempt by law or assets whose realisation is expected to cost more than their likely proceeds (Article 169.1 and 169.5 LGT).

If the authority and debtor have not agreed on a different order, the authority first considers which assets can be realised most easily and with the least burden to the debtor. Only when those criteria are impossible or very difficult to apply does the statutory sequence apply: cash and bank accounts; short-term receivables and securities; salaries, wages and pensions; real estate; income and proceeds; businesses; precious metals and similar valuables; movable property and livestock; and long-term receivables and rights. Assets requiring entry into the debtor’s home are attached last. At the debtor’s request, the order may be changed if the proposed assets secure collection with the same effectiveness and speed and do not prejudice third parties (Article 169.2 and 169.4 LGT).

Information powers and exempt assets

Collection officials may investigate the existence and status of the debtor’s assets and may require the debtor to provide an asset list sufficient to cover the debt (Article 162 LGT). Third parties may have information duties under Articles 93 and 94 LGT, subject to the statutory scope and safeguards; this is not an unlimited power to demand any information from anyone.

Assets declared unattachable by law are protected. The Civil Procedure Act (LEC) lists absolutely exempt assets and basic household necessities and tools of trade in Articles 605 and 606. Under Article 607 LEC, salary, wages and pensions up to the statutory minimum wage are generally exempt, with progressive limits on amounts above it and specific exceptions. The result depends on the type of income and circumstances.

Liability for obstructing collection

Article 42.2(a) LGT provides for joint and several liability for persons who cause or cooperate in concealing or transferring the debtor’s assets with the purpose of preventing tax collection. Article 42.2(b) addresses persons who, through fault or negligence, fail to comply with attachment orders. Liability is not automatic: the statutory requirements and the applicable limit must be established in the relevant procedure.

Legal basis: Articles 42.2, 62.5, 162, 167–170 LGT and Articles 605–607 LEC. Check the notice, the property involved and applicable exemptions in the individual case.