have a debt with the Treasury It may be more common than it seems, either due to failure to comply with tax obligations with the Tax Agency or simply due to carelessness. The reasons can be varied, as can the amounts, which can range from a few cents to tens of thousands of euros. Despite this, the Tax Agency has certain limits and mechanisms to manage these situations. Although having a debt with the Treasury is not a pleasant experience, the truth is that, under certain circumstances, it is possible to avoid payment without fear of receiving a fine or sanction by the Tax Agency.
In this sense, the Treasury may forgive debts of less than 3 euros or more than 10,000 euros through the Second Chance Law, but as long as certain requirements are met.
Amounts less than 3 euros
On November 10, 2022, the Tax Agency published a resolution that can be consulted in the Official State Gazette. In this, the General Directorate of the Tax Agency determined that Debts dated before June 1, 2022, whose amount is less than three euros, can be forgiven.
This is because the administrative costs necessary to claim these amounts exceed the amount that would be recovered. Therefore, if a person has a debt with the Treasury of less than three euros, they can request its forgiveness. However, in the event that the debt is greater than four euros, this measure will not be applicable. In this case, the Tax Agency may claim the amount, and if the debtor does not pay it, they must face the usual claim procedures established by the Treasury.
The Second Chance Law, but up to 10,000 euros
Another situation in which the Treasury can forgive debts is through the Second Chance Law (LSO)regulated in the Law 25/2015available for consultation in the Official State Gazette. This law is designed to help people with large debts that they cannot pay, allowing them to rnegotiate or even cancel a part of what they owe. Even so, it is not a law that is requested and approved, it is necessary to meet a series of conditions. Among these are:
- Be legal resident in Spain.
- Have at least two debts with different creditors.
- Not having sufficient financial capacity to cover debts.
- Not having been convicted of socioeconomic crimes.
Although the Second Chance Law allows debts to be forgiven, in the case of public debts, such as those contracted with the Treasury or Social Security, there is a limit of 10,000 euros for each administration. This limit was established with the 2022 reform, which made the conditions stricter compared to previous rules, when public debts could be forgiven regardless of the amount owed.
In addition to being able to forgive a part of the debt, this law offers other benefits such as taking advantage of the Second Chance Law, embargoes for non-payments are stopped immediatelyand the debtor’s name is removed from the lists of defaulters. This allows the person, for example, to access a loan or be able to request a benefit from the administration, which can help them improve their financial situation and start over.