The statute of limitations for tax penalties is one of the most important—yet least understood—aspects of tax law.
What many taxpayers do not know is that the Tax Authority cannot impose penalties whenever or however it chooses. There are strict legal deadlines, and if these deadlines are not respected, the penalty may be fully annulled due to expiration.
In this article, we clearly explain when a tax penalty becomes time-barred, which deadlines apply in 2026, and how to identify whether a penalty procedure is legally invalid.
What Is the Statute of Limitations for a Tax Penalty?
A tax penalty becomes time-barred when the Tax Authority initiates the penalty procedure after the legally established deadline. In such cases, the Administration definitively loses the right to impose the fine.
It is important not to confuse expiration (caducity) with prescription.
Expiration affects a specific penalty procedure, whereas prescription refers to the passage of time since the tax infringement itself was committed.
How Much Time Does the Tax Authority Have to Initiate a Penalty?
To determine whether a penalty has expired, the first step is to analyze the deadline for initiating the penalty procedure, calculated from the date on which the tax assessment is formally notified.
This issue is critical in many reviews carried out by specialized tax advisors, as an error in calculating the deadline invalidates the entire procedure.
Three or Six Months to Impose a Penalty: Key Differences
Three-Month Deadline (Previous Regime)
Before the entry into force of Law 11/2021, the Tax Authority had three months to initiate a penalty procedure from the date of notification of the tax assessment.
If this period elapsed without formal notification of the start of the penalty procedure, the penalty automatically expired.
Six-Month Deadline After Law 11/2021
Since the approval of Law 11/2021, the general deadline for initiating penalty proceedings has been extended to six months. However, this deadline cannot be applied retroactively if it disadvantages the taxpayer.
Expiration of Tax Penalties and Retroactivity: TEAC Criterion (2025)
The Six-Month Deadline Cannot Apply to Older Infringements
In its resolution of 17 July 2025, the Central Economic-Administrative Court (TEAC) clarified that the extended six-month deadline cannot be applied to infringements committed before 11 July 2021.
In such cases, the three-month deadline remains applicable, even if the tax assessment or penalty is notified years later.
Practical Example of an Expired Tax Penalty
If the infringement was committed before July 2021 and the Tax Authority initiates the penalty procedure more than three months after the tax assessment, the penalty is time-barred and must be annulled.
This is one of the most common errors detected when reviewing cases through a Mallorca-based tax advisory firm experienced in penalty proceedings.
What Happens If the Tax Authority Initiates the Penalty Late?
Legal Effects of an Expired Penalty Procedure
When a tax penalty expires due to missed deadlines, the consequences are clear:
- The Tax Authority loses the right to impose the penalty.
- A new penalty procedure cannot be initiated.
- The penalty is annulled even if the infringement itself has not prescribed.
These effects are regulated under Article 211.4 of the General Tax Law.
Maximum Duration of a Tax Penalty Procedure
Deadline to Resolve a Tax Penalty
Once validly initiated, the penalty procedure must be completed within a maximum period of six months, counted from the notification of initiation to the notification of the final decision.
Importance of Electronic Notifications
To comply with deadlines, the Tax Authority only needs to attempt a valid notification or make it available in the taxpayer’s Electronic Tax Office.
The taxpayer does not need to access the notification for the deadline to be considered fulfilled.
Stages of the Penalty Procedure and Deadlines for Appeals
Initiation of the Penalty Procedure
At the initiation stage, the Tax Authority notifies the opening of the procedure and, in many cases, directly includes the proposed penalty. The taxpayer has 15 days to submit arguments.
Proposed Resolution and Final Allegations
If no proposal is made at the initiation stage, the case officer will later issue a reasoned proposal. The taxpayer again has 15 days to submit evidence and arguments before the final decision.
Conclusion: Reviewing Deadlines Can Annul a Tax Penalty
In many cases, the key issue is not the amount of the penalty or the infringement itself, but the expiration of the tax penalty due to missed legal deadlines.
A proper review of the timeline can lead to the full annulment of the fine, without the need to engage in complex discussions about the substance of the case.
Expert Tax Advisory in Mallorca for Reviewing Tax Penalties
At Resitax, as a tax advisory firm in Mallorca, we review tax penalties and procedures to identify missed deadlines, procedural defects, and real opportunities for annulment.
You can learn more about our specialized tax advisory services here:
https://resitax.eu/asesoria-fiscal-mallorca/
Or request a personalized review through our contact page:
https://resitax.eu/contacto/
