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Tax season may be long over, but for thousands of Spaniards, the stress is only just beginning… Across Spain, people are opening their mailboxes this autumn to find the infamous “cartas del miedo” – or “fear letters” – from Hacienda, Spain’s Tax Agency. These letters are sent when the authorities believe something doesn’t quite add up in a taxpayer’s income declaration, and for many, they’re accompanied by an unwelcome surprise: fines of up to 20%. According to the tax platform TaxDown, this is the time of year when Hacienda turns up the heat. Nearly 60 per cent of all these notices are issued between October and December, as the agency rushes to close pending cases before the end of the fiscal year. Last year alone, around two million letters were sent, and experts believe the number could be even higher this year. It’s not just the volume that’s striking – it’s the impact. Since these audits began in 2016, Spanish taxpayers have paid an extra €1.6 billion in total. In short, the “fear letters” are doing exactly what they were designed to do. What’s really behind these “fear letters”? The letters are part of Hacienda’s way of keeping taxpayers in line. As TaxDown explains, they’re issued when the agency spots a possible error, missing information, or inconsistency between what someone declared and what appears in its databases. Sometimes, the issue is minor – a forgotten receipt or a miscalculated deduction. Other times, it’s a sign that the taxpayer may owe more than they declared. Either way, the message is clear: Hacienda wants answers. The letters usually arrive by post, although an increasing number of taxpayers now receive them digitally – either through a text message or a notification in their online tax portal. Not every letter means trouble, but all of them deserve attention. There are several types: Informative notices, sent just to clarify a point. Official requests, which must be answered or risk a fine. Proposals for correction, where Hacienda suggests changing a declaration. Payment demands or embargo notices, warning of money being seized if debts aren’t settled. And for the unlucky few, there’s the inspection notice — the one that signals the start of a formal tax investigation. What happens if you don’t act? If you notice a mistake in your declaration and pay what you owe voluntarily, the penalty is fairly light – just 5 per cent. But once a formal notice has been issued, that charge can jump to 10 per cent or even 20 per cent, depending on how quickly you respond. It may not sound much at first glance, but the total can escalate fast, especially when interest and administrative costs are added on top. And once an embargo notice arrives, Hacienda has the legal right to freeze your account, seize part of your salary, or even claim assets until the debt is cleared. Tax experts strongly advise against ignoring these letters. “The worst thing you can do is nothing,” says TaxDown. Recipients should always verify that the letter is genuine, preferably by checking the official Hacienda website, and seek professional advice if unsure how to respond. A yearly ritual no one looks forward to By now, the “cartas del miedo” have become almost a ritual of autumn in Spain – an annual reminder that Hacienda never forgets. For the Tax Agency, it’s a highly effective system that recovers millions each year. For taxpayers, it’s an anxiety-inducing exercise that can turn an ordinary day into a very expensive one. And with technology allowing Hacienda to cross-check data faster and more precisely than ever, experts say these letters are here to stay — and likely to increase in frequency. So, if one of those official envelopes lands in your mailbox this month, don’t ignore it, don’t panic – but definitely don’t toss it aside. A quick response might just save you from a costly mistake. Stay tuned with Euro Weekly News for more news from Spain
