Which tax debts can be deferred or paid in instalments?

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A deferral moves the due date for payment of a debt. Payment by instalments divides the debt into several due dates. In either case, the taxpayer must apply and the tax authority must grant the request.

As a general rule, an application may be made for tax debts in the voluntary or enforcement period when the taxpayer’s financial circumstances temporarily prevent payment by the prescribed deadline. A deferral is not automatic: it is subject to the General Tax Law and collection rules. The rules governing the particular tax and the competent tax authority must also be checked.

Debts that cannot be deferred or paid by instalments

Section 65(2) of Spain’s General Tax Law excludes, among others, the following debts:

• Debts collected by means of stamped paper or other stamped instruments.
• Debts arising from obligations to withhold tax or make payments on account. The current law does not provide the former exception based on maintaining productive capacity or employment.
• In insolvency proceedings, debts classified as claims against the estate under insolvency law.
• Debts arising from the enforcement of decisions ordering the recovery of State aid.
• Debts arising from the enforcement of final decisions, wholly or partly adverse to the taxpayer, in appeals or claims, if payment had been suspended while those proceedings were pending.
• Debts arising from taxes that must legally be passed on, unless it is duly shown that the amounts charged were not actually collected.
• Debts relating to a taxpayer’s obligation to make advance instalment payments of Corporate Income Tax.

Applications relating to these debts are inadmissible. For other debts, the tax authority examines whether the legal requirements are met and may require security, subject to statutory exemptions. The fact that a debt may be included in an application does not mean the request will be granted.

(General Tax Law 58/2003, section 65, especially subsections 1–3; security is addressed in section 82.)