Tax fraud lawyer in Madrid

Short answer. Article 305 of the Criminal Code punishes with imprisonment of one to five years and a fine of one to six times the amount anyone who defrauds the public revenue of more than 120,000 euros per tax and period, and Article 307 applies the same penalties to social security fraud exceeding 50,000 euros over four years; Article 305 bis raises the penalty to imprisonment of two to six years when the amount exceeds 600,000 euros, a criminal organisation is involved or front men, intermediary companies or tax havens are used. Complete regularisation before learning of the start of an inspection or of a criminal complaint excludes the offence. In Madrid, seat of the Tax Agency and of the Public Prosecutor’s Office, we defend taxpayers, directors and advisers from the inspection to the trial.

Madrid is the seat of the State Tax Administration Agency, of the General Treasury of the Social Security and of the specialised prosecution offices, and a very significant share of the country’s tax offences is handled in its courts. The particularity of this field is that criminal proceedings almost always arise from a prior administrative file, the inspection, and that the most important strategic decision is taken before a complaint even exists: during the inspection itself, while regularisation is still possible.

The offence against the public revenue: Article 305

Tax fraud is committed by anyone who, by act or omission, defrauds the State, regional, foral or local public revenue by evading payment of taxes, amounts withheld or that should have been withheld or payments on account, improperly obtaining refunds or improperly enjoying tax benefits, provided that the amount exceeds 120,000 euros. The penalty is imprisonment of one to five years and a fine of one to six times the amount, plus loss of the possibility of obtaining subsidies and of enjoying tax or social security benefits for three to six years. The mere filing of returns does not exclude fraud when it is established by other facts.

Calculating the amount. For periodic taxes, the amount defrauded in each tax period is considered, and if the period is shorter than twelve months, the calendar year; for the others, each item for which a taxable event may be assessed. The rule has a relevant exception: in frauds committed within a criminal organisation or group, or by persons or entities acting under the appearance of a real economic activity without carrying it on, the offence is prosecutable from the moment the amount is reached. Disputing the calculation, the temporal allocation and the amount is, in most Madrid cases, the core of the defence, because an amount of 130,000 euros is an offence and one of 110,000 is an administrative infringement.

The aggravated offence of Article 305 bis. Imprisonment of two to six years and a fine of two to six times the amount when the amount defrauded exceeds 600,000 euros; when the fraud was committed within a criminal organisation or group; or when the use of intermediary natural or legal persons, fiduciary businesses or instruments or tax havens conceals or hinders the identity of the taxpayer, the amount defrauded or the assets. Disqualification from subsidies and tax benefits then extends from four to eight years. With a maximum penalty of six years, trial falls to the Provincial Court and the limitation period is ten years.

The offence against social security: Article 307

With the same structure, Article 307 punishes with imprisonment of one to five years and a fine of one to six times the amount anyone who defrauds the social security system by evading payment of contributions and jointly collected items, improperly obtaining refunds or improperly enjoying deductions, provided that the amount exceeds 50,000 euros, calculated on the total amount defrauded over four calendar years. The situation is deemed regularised when the taxpayer acknowledges and fully pays the debt before being notified of the start of inspection proceedings or, where there are none, before the complaint of the Public Prosecutor or the Social Security counsel, or before the judge takes steps that allow them to learn formally of the opening of proceedings. In Madrid service, hospitality and construction companies, the fraud is frequently structured through bogus self-employed workers, under-declared contributions or shell companies, and the labour inspectorate is the usual origin of the proceedings.

Regularisation: the decision taken before the complaint

Both Article 305 and Article 307 exclude the offence when the taxpayer fully regularises their situation, acknowledging and paying the debt, before formally learning of the start of the inspection or of the criminal complaint. It is the most effective defence tool that exists and the one that requires the greatest speed: as soon as a notice of the start of inspection proceedings is received, the possibility disappears. That is why the tax adviser and the criminal lawyer should work together from the first request, assessing the potential amount, the risk of exceeding the threshold and the cost of regularising against that of litigating. When regularisation is no longer possible, payment of the tax debt before trial operates as a mitigating circumstance and frequently conditions the prosecutor’s request.

How proceedings work in Madrid

When the Tax Agency finds indications of an offence, it refers the file to the Public Prosecutor or files a complaint with the Tribunal de Instancia de Madrid; the Prosecutor may also act on its own initiative. The investigation relies on the inspection report and on the expert evidence of the Agency’s officials, who act as prosecution experts; the defence needs its own expert report, disputing the amount, the temporal allocation, the deductibility of expenses and the existence of deception, because not every unpaid amount is fraud. When the amount exceeds 600,000 euros or an organisation is involved, the case may end up before the Audiencia Nacional if it has a serious impact on the national economy. The company director answers as principal, and the company as a legal person under Article 310 bis, with a fine of one to two times or two to four times the amount and loss of subsidies and benefits.

Tax advisers, administrators and accountants in Madrid are increasingly investigated as necessary cooperators. Their defence focuses on delimiting their role, on establishing that they acted on the information provided by the client and on the duty of professional secrecy regarding what they learned.

Legal basis

Article 305 of the Criminal Code: fraud against the public revenue exceeding 120,000 euros, imprisonment of one to five years and a fine of one to six times the amount, loss of subsidies and benefits for three to six years, calculation rules and regularisation. Article 305 bis: aggravated offence for amounts over 600,000 euros, criminal organisation or use of intermediaries and tax havens, imprisonment of two to six years. Article 307: social security fraud exceeding 50,000 euros over four calendar years, same penalties and regularisation. Article 310 bis: penalties for the legal person. Source: consolidated texts published by the Official State Gazette, version in force on 24 September 2026.

Frequently asked questions

From what amount is tax evasion a criminal offence?

When the amount defrauded, the withholdings not paid or the refunds or benefits improperly obtained exceed 120,000 euros per tax and tax period (Article 305.1 of the Criminal Code). For social security, when the amount defrauded exceeds 50,000 euros calculated over four calendar years (Article 307.1).

What is the penalty for tax fraud?

Imprisonment of one to five years and a fine of one to six times the amount, plus loss of subsidies and tax benefits for three to six years. In the aggravated offence of Article 305 bis, for amounts over 600,000 euros, a criminal organisation or the use of front men, intermediary companies or tax havens, imprisonment of two to six years and a fine of two to six times the amount.

Can I avoid the offence by paying later?

Yes, if you fully regularise, acknowledging and paying the debt, before being notified of the start of the inspection or before the criminal complaint. After that moment, payment no longer excludes the offence but operates as a mitigating circumstance.

Is the tax adviser liable?

They may be liable as a necessary cooperator if they knowingly designed or executed the fraud. Their defence focuses on delimiting their role and establishing that they acted on the information provided by the client.

When does tax fraud become time-barred?

After five years for the basic offence and after ten for the aggravated offence of Article 305 bis, whose maximum penalty is six years (Article 131 of the Criminal Code), counted from consummation, which coincides with the end of the voluntary filing period.

Related guides

• Tax fraud lawyer in Spain
• Article 305 of the Criminal Code
• Economic and corporate crime lawyer
• Criminal defence lawyer in Madrid
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This article is informative in nature and does not constitute legal advice. For a specific case, consult a lawyer.