The expiry of the tax penalty is one of the most important—and at the same time most unknown—aspects of tax law.
What many taxpayers don't know is that the tax authorities can't impose penalties whenever or however they want. There are very specific legal deadlines, and if these are not met, the penalty may be nullified due to expiration.
In this article we clearly explain when a tax penalty expires, what deadlines apply in 2026 and how to detect if a penalty file is invalid.
What is the expiry of a tax penalty?
The statute of limitations for a tax penalty expires when the tax authorities initiate the penalty proceedings outside the legally established timeframe. In that case, they definitively lose the right to impose the fine.
It is important not to confuse expiration with prescription. Expiration affects the specific sanctioning procedure, while prescription refers to the passage of time since the infraction.
How long does the tax authorities have to initiate a penalty?
To determine if there is an expiration, the first step is to analyze the deadline for initiating the sanctioning procedure from the notification of the tax settlement.
This point is key in many reviews carried out by a specialized tax advisor, since an error in calculating the deadline invalidates the entire procedure.
3 or 6 month time limit for imposing sanctions: key differences
3-month period (previous regime)
Before the entry into force of Law 11/2021, the Treasury had 3 months to initiate the sanctioning procedure from the notification of the settlement.
If that deadline passed without notification of the start of the proceedings, the sanction would automatically expire.
6-month period following Law 11/2021
Since Law 11/2021, the general time limit for initiating penalty proceedings has been set at 6 months. This time limit cannot be applied retroactively if it is detrimental to the taxpayer.
Expiry of the tax penalty and retroactivity: TEAC criterion in 2025
The 6-month time limit cannot be applied to old offenses
The TEAC, in its resolution of July 17, 2025, has clarified that the extended 6-month period cannot be applied to infringements committed before July 11, 2021.
In these cases, the 3-month period still applies , even if the settlement or penalty is notified years later.
Practical example of an expired sanction
If the infringement was committed before July 2021 and the Tax Office initiates the sanctioning procedure more than 3 months after the settlement, the sanction is expired and must be cancelled.
This is one of the most common errors detected when reviewing files from a tax consultancy in Mallorca with experience in sanctioning procedures.
What happens if the tax authorities initiate the penalty after the deadline?
Effects of the expiry of the sanctioning procedure
When the tax penalty expires, the consequences are clear:
- The Treasury loses the right to impose sanctions.
- A new sanctioning procedure cannot be initiated.
- The sanction is cancelled even if the infraction has not expired.
All of this is regulated in article 211.4 of the General Tax Law.
Maximum duration of the sanctioning procedure
Time limit for resolving a tax penalty
Once properly initiated, the sanctioning procedure has a maximum duration of 6 months, counted from the notification of the start until the notification of the final resolution.
Importance of electronic notifications
To meet the deadlines, the Tax Agency only needs to attempt to send a valid notification or make it available on its Electronic Office website. The taxpayer does not need to access it for the deadline to be considered met.
Stages of the sanctioning procedure and deadlines for submitting allegations
Initiation of the disciplinary proceedings
In the initial phase, the Tax Agency notifies the taxpayer of the commencement of the proceedings and, in many cases, directly includes the proposed penalty. The deadline for submitting an appeal is 15 days.
Proposed resolution and final arguments
If no proposal is submitted at the outset, the instructor will subsequently issue a reasoned proposal. Again, the taxpayer has 15 days to submit arguments before the final decision.
Conclusion: Checking the expiry date can overturn a tax penalty
In many cases, the key is not the amount or the infraction, but the expiry of the tax penalty due to non-compliance with legal deadlines.
Correctly checking the calendar can lead to the complete cancellation of the fine, without the need to enter into complex discussions about the substance of the matter.
Expert tax advice in Mallorca to review tax penalties
At Resitax, as a tax consultancy in Mallorca, we analyze penalties and tax procedures to detect deadline errors, formal 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/