Receiving notification of an inspection is understandably unsettling. However, the outcome of a tax audit in Mallorca depends not only on the substance of the matter but also, to a great extent, on the first few weeks and how each action is documented.
The procedure is regulated in detail in Law 58/2003, General Tax Law (LGT), and in the Regulation approved by Royal Decree 1065/2007 (RGAT), and this framework recognizes specific rights for the taxpayer that should be exercised from day one.
In our experience, an appropriate strategy for dealing with a tax inspection in Mallorca requires controlling from the outset the scope of the procedure, the deadlines, the documentation provided, and the statements that are incorporated into the file.
At Resitax, a leading tax and legal firm in Mallorca, we assist individual taxpayers and companies in tax audits before the Spanish Tax Agency (AEAT) and the Balearic Islands Tax Agency (ATIB). Our specialization in national and international taxation allows us to handle these procedures taking into account both the general rules of tax audits and the specific circumstances affecting resident and non-resident taxpayers in the Balearic Islands.
Notification of the start of a tax inspection in Mallorca: what needs to be checked
The notification of commencement establishes the object of the procedure: the taxes and periods to be audited and whether the actions are general or partial in scope (Art. 148 LGT). It must also inform of the maximum applicable time limit (Art. 150.2 LGT).
This content is not a mere formality. Anything falling outside the scope of the notification requires a reasoned extension agreement communicated to the taxpayer, and the Tax Inspection cannot extend its investigations to other items or tax years arbitrarily.
Prescription of the affected exercises
The first check consists of comparing the reported periods with the four-year statute of limitations (art. 66 LGT).
A prescribed tax year cannot be regularized, although the Administration retains the power to verify facts from prescribed tax years when they project effects on open tax years, such as negative tax bases or deductions pending application, with the limit of ten years established by article 66 bis LGT.
Representation before the Inspection
The second control is deciding who attends to the Inspection.
The taxpayer may act through a representative (art. 46 LGT), and personal appearance may only be required exceptionally and with justification when the nature of the action requires it (art. 142.3 LGT).
Channeling actions through an advisor is not a matter of convenience: it avoids spontaneous statements that are later incorporated into the file and allows preparing each appearance with the agenda known.
Time limit for a tax inspection in Mallorca: 18 or 27 months and the consequences of non-compliance
The period is calculated from the notification of the start communication until the notification of the act that ends the procedure; one attempt at notification containing the full text of the resolution is sufficient (art. 150.2 LGT).
Since the reform of Law 34/2015, the old delays attributable to the taxpayer are no longer discounted, but there are specific cases of suspension and extension that should be known.
| Supposed | Consequence on the deadline |
|---|---|
| General rule | 18 months (art. 150.1.a LGT) |
| Turnover equal to or greater than that required for auditing accounts, or integration into a tax group that is being audited | 27 months (art. 150.1.b LGT) |
| Periods of non-action requested by the taxpayer before the hearing process | Up to 60 calendar days for the entire procedure, which extends the maximum period (art. 150.4 LGT) |
| Submission of documentation after the third unanswered request, once at least nine months have elapsed | Extension of 3 months; of 6 months if it is submitted after the record and requires supplementary actions (art. 150.5 LGT) |
| Exceeding the maximum time limit | There is no expiry, but the actions taken do not interrupt the statute of limitations, the payments made are spontaneous and default interest ceases to accrue (art. 150.6 LGT) |
The practical consequence is clear: the calendar is a defense tool.
A procedure that exceeds its maximum duration may leave entire exercises prescribed, and this circumstance is only taken advantage of if a rigorous control of dates has been kept since the first notification.
The periods of non-action under Article 150.4 LGT, for their part, are useful for preparing the documentation rigorously, but they must be requested before the opening of the hearing process and with sufficient justification, because their denial is not subject to appeal.
Procedures during a tax inspection: what is signed is presumed to be true
The proceedings carried out during the procedure have the nature of a public document and constitute proof of the facts they contain, unless proven otherwise (art. 107.1 LGT).
Even more relevant: the facts accepted by the taxpayer and their statements are presumed to be true and can only be rectified by proof that a factual error was made (art. 107.2 LGT).
An imprecise phrase in a legal proceeding can affect all subsequent regularization.
Therefore, we recommend reading each document before signing it, requesting that any statements and reservations deemed appropriate be included, and not accepting as facts what are actually legal classifications.
Signing a document confirms receipt of its contents, not agreement with them.
It is also advisable to keep your own numbered record of all the documentation submitted, indicating the date and the requirement it addresses.
The documentation must be provided complete, organized and tailored to what is requested: unsolicited information opens up issues that were not within the scope of the procedure.
Entry of the Inspection into premises and homes: limits set by the Supreme Court
The Inspection can access properties, business premises and establishments where activities subject to tax are carried out, but it needs an entry agreement from the competent administrative authority, unless the owner or the person in charge of them gives their consent (art. 142.2 LGT).
If the place constitutes a constitutionally protected domicile, which includes certain dependencies of companies, judicial authorization is also required (art. 113 LGT).
Consent given at the time by an employee is difficult to challenge later, so it is prudent to properly request to see the agreement or the document before allowing access.
Supreme Court case law on inspection entries
Case law has precisely defined these actions.
The Supreme Court ruling of October 1, 2020 (ECLI:ES:TS:2020:3023) established that the entry authorization must be connected with an inspection procedure already opened and notified, indicating the taxes and periods affected, and rejected that the mere taxation lower than the statistical average of the sector justifies such a serious measure.
The Supreme Court ruling of July 2, 2024 (ECLI:ES:TS:2024:3653) declared that questioning managers and employees without prior notice at the company headquarters, on the occasion of an authorized search, violates the right to defense of article 24 of the Constitution.
And the recent STS of July 20, 2026 (ECLI:ES:TS:2026:3524) admits the use of documentation of exercises not included in the authorization in application of the doctrine of the accidental finding, provided that the record is suitable and proportionate, general and indiscriminate requisitions are excluded and the Inspection formally expands the scope of its actions.
Hearing procedure and signing of the minutes: agreement, accord or disagreement
Once the verification phase is complete, the Inspection makes the file available and opens the hearing process, in which the taxpayer can examine all the actions taken and make allegations before the regularization proposal.
It is time to review the entire file, not just the proposal, because any deficiency in evidence or motivation that is detected will then condition the appeal strategy.
Afterwards, the procedure is documented in one of three types of minutes, with very different consequences.
| Mode | Main effects |
|---|---|
| Certificate of conformity (art. 156 LGT) | The settlement is considered final unless otherwise notified within one month. The penalty is reduced by 30%, and by an additional 40% if paid within the voluntary payment period and not appealed (Art. 188 LGT). Appealing the settlement results in the loss of the reduction. |
| Minutes with agreement (art. 155 LGT) | Reserved for indeterminate legal concepts, valuations, or estimates. Requires a deposit, guarantee, or surety bond. 65% reduction of the penalty. Can only be challenged on the grounds of absolute nullity or defects of consent. |
| Record of non-compliance (art. 157 LGT) | It allows for the submission of arguments within 15 days to the competent body for assessment and, subsequently, the filing of an appeal with the Regional Economic-Administrative Court (TEAR) or the Central Economic-Administrative Court (TEAC) and resorting to the contentious-administrative process. There is no reduction of the penalty. |
How to decide which type of document to sign
The choice should not be made based on reducing the penalty.
A signed agreement on a questionable rating closes the door to its review, and a signed agreement, despite its economic appeal, is practically unreviewable.
The decision requires assessing the strength of the taxpayer's position, the amount at stake, and the real probability of success through economic-administrative and judicial channels.
This analysis must also be considered in relation to the different possible reactions to a tax assessment, since the strategy adopted during the inspection phase will condition the subsequent review options.
At Resitax, we jointly analyze the tax audit file and the subsequent possibilities for appeal. As a firm specializing in tax procedures in Mallorca, our goal is to prevent a decision made when signing the report from unnecessarily limiting the taxpayer's subsequent defense.
Disciplinary proceedings following a tax inspection in Mallorca
Regularization does not automatically entail a penalty.
Unless waived, the sanctioning procedure is processed separately and must be initiated within six months of notification of the settlement (art. 209.2 LGT).
The Administration has the burden of specifically justifying guilt, and it is not enough to simply state that income has been lost.
The reasonable interpretation of the rule excludes liability (art. 179.2.d LGT), and this argument is built from the inspection procedure itself, recording in the proceedings the criteria followed and their basis.
When might there be a criminal risk?
When the amount defrauded per tax and period exceeds 120,000 euros, there may be a crime against the Public Treasury (art. 305 of the Penal Code).
In that case, the Inspection may pass the blame to the Public Prosecutor's Office or to the criminal jurisdiction, with suspension of the procedural deadline (art. 150.3.a LGT).
If that possibility exists, every statement and every document must be measured with special care and coordinated with the criminal defense from the beginning.
Tax inspections of international taxpayers and in the Balearic Islands
A large part of the inspections we handle involve taxpayers with links in several countries: discussions about tax residency, foreign source income, reporting obligations on assets abroad, or non-resident owners of real estate in the Islands.
In these cases it is crucial to have tax residency certificates issued by the competent authority, duly translated banking and registry documentation and a prior analysis of the applicable double taxation avoidance agreement.
Non-residents must also take into account the obligation to appoint a representative in the cases of article 47 LGT and monitor electronic notifications, the lack of attention to which does not prevent the deadline from continuing to run.
ATIB inspections in Mallorca and the Balearic Islands
The same rules apply, with the adaptations specific to its regulations, when the verification is carried out by the Tax Agency of the Balearic Islands (ATIB) in ceded taxes such as the Inheritance and Gift Tax or the Property Transfer Tax, an area in which value verifications are especially frequent.
For resident taxpayers, non-resident taxpayers and companies with economic interests in Mallorca, the intervention of a firm with experience before both the AEAT and the ATIB allows the procedure to be addressed taking into account the tax particularities of the Balearic Islands.
Keys to successfully handling a tax inspection in Mallorca
A tax audit is won or lost in the management of the procedure as much as in the substantive discussion.
Controlling the scope and schedule, ensuring the content of each procedure, demanding legal coverage for each action, and choosing the type of record with discernment are decisions that protect the taxpayer and preserve their options for recourse.
We suggest seeking expert advice from the moment you receive the initial communication, not when the regularization proposal is already on the table.
Resitax: specialized advice on tax inspections in Mallorca
At Resitax we assist individual taxpayers and companies, residents and non-residents, in inspection procedures before the AEAT and the ATIB, as well as in the subsequent economic-administrative and contentious-administrative route.
Resitax is a leading firm in Mallorca specializing in national and international taxation and tax procedures. This specialization allows them to handle tax audits in Mallorca from a comprehensive perspective, paying particular attention to procedural strategy, documentation, tax residency, and subsequent defense options.
We provide service in Spanish, German, English, and French.
Frequently asked questions about a tax inspection in Mallorca
How long can a tax inspection in Mallorca last?
The general rule establishes a period of 18 months (Art. 150.1.a LGT). In certain cases, such as when the turnover is equal to or greater than that required for auditing accounts or there is integration into a tax group that is being audited, the period is 27 months (Art. 150.1.b LGT).
Is it mandatory to appear in person before the Inspection?
The taxpayer may act through a representative (Art. 46 LGT). Personal appearance may only be required exceptionally and with justification when the nature of the action so requires (Art. 142.3 LGT).
Does signing a document imply agreement?
Signing a document confirms receipt of its contents, but not necessarily agreement with them. However, facts accepted by the taxpayer and their statements are presumed to be true and can only be rectified by proving that a factual error was made (Art. 107.2 LGT).
What happens if the inspection exceeds the maximum time limit?
The procedure does not expire, but the actions taken do not interrupt the statute of limitations, the payments made are spontaneous and default interest ceases to accrue (art. 150.6 LGT).
Does regularization necessarily imply a penalty?
No. Regularization does not automatically entail a penalty. Unless waived, the penalty procedure is processed separately and must be initiated within six months of notification of the assessment (art. 209.2 LGT).
Can a tax audit lead to criminal proceedings?
When the amount of tax evaded per tax period exceeds €120,000, it may constitute a crime against the Public Treasury (Article 305 of the Criminal Code). In this case, tax strategy and criminal defense must be coordinated from the outset.
This article is for informational purposes only and does not constitute legal or tax advice for any specific case. Regulations and case law cited are in effect at the time of publication.