Enhanced Monitoring Report on the Implementation of the Standard on Transparency and Exchange of Information on Request 2025

Spain

Spain joined the Global Forum in 2009. Spain underwent its Second Round of EOIR Peer Review in 2019 (Spain’s 2019 Report),1 which assessed its legal and regulatory framework in force as at 21 December 2018 and its practical implementation, including in respect of EOI requests received and sent during the review period from 1 January 2015 to 31 December 2017. Spain received an overall rating of Largely Compliant and the individual Elements were rated as follows:

 

	A.1	A.2	A.3	B.1	B.2	C.1	C.2	C.3	C.4	C.5	Overall
Determinations	i.p.	i.p.	i.p.	i.p.	i.p.	i.p.	i.p.	i.p.	i.p.	n.a.	LC
Ratings	LC	LC	C	C	C	C	C	C	C	C

Status of implementation of recommendations issued in the peer review report

Spain received two in-box recommendations in relation to Elements A.1 and A.2.

This monitoring report assesses the actions taken by Spain to address the recommendations issued in its EOIR Peer Review Report and the peer input received for the monitoring period 2023-2024.

The report concludes that the two in-box recommendations are “in the process of being addressed” and advises on actions required.

Element A.1: Availability of ownership and identity information

1. Beneficial ownership information-significant proportion of non-complying inactive entities

 

Recommendation (A.1 practice)	Spain should review its system whereby a significant number of non-complying inactive companies remain with legal personality on the Commercial Registry.
Underlying factor	The large number of inactive companies that maintain legal personality and do not comply with their filing obligations raises concerns that beneficial ownership information might not be available in all cases. (see paragraphs 106 to 121 of Spain’s 2019 Report for more information)
Summary of actions reported	Since 2020, the Spanish tax administration has prioritised the cleaning of the tax census (database of taxpayers) by annually identifying the entities that are non-compliant with their obligation to submit their Corporate Income Tax returns. After three consecutive years of failing to comply with this obligation, such entities have been de-registered and their taxpayer identification numbers revoked. This prioritization has resulted in a significant increase of the number of entities with a revoked taxpayer identification number. The revocation of the taxpayer identification number is public information, and it results in impeding the continuity of operations of the entity. The revocation of this number prevents taxpayers from carrying out some activities including, since 2021, to enter into notarised instruments or register any act in any public or administrative registry. The number of entities with a revoked taxpayer identification number that attempted to carry out a notarised instrument is limited. For the taxpayer identification number to be reinstated, the entity must provide the beneficial ownership information at the time of the reinstatement. Furthermore, since 2023, beneficial ownership information is also collected by the tax administration as all entities must submit this information in their corporate tax return.
Conclusion	Spain has made progress to address the recommendation. It should report further progress in its next self-assessment. The actions taken help in monitoring the situation of non-complying inactive entities. Nevertheless, these entities still have their legal personality and can still have activities abroad. In addition, changes in the beneficial ownership and economic operations of an entity do not require, in all cases, the involvement of a notary or a credit institution that could report the existence of an activity to the tax administration. In addition, although the beneficial ownership information must be provided at the time of the reinstatement of the taxpayer identification number, the historical beneficial ownership information does not have to be provided. Consequently, the availability of this information for the years preceding the reinstatement is not ensured. Therefore, the process of revocation of the taxpayer identification number may not be sufficient to address the recommendation. While the beneficial ownership information held by the tax administration through the obligation of entities to submit this information can be an alternative source, the proportion of inactive entities can also affect the effective implementation of this obligation.
Status determined	In the process of being addressed
Actions required	In its next self-assessment, Spain should: Substantiate how the legal and practical changes sufficiently mitigate the risk of non-complying inactive entities holding assets or conducting activities abroad and of the non-availability of adequate, accurate and up-to-date beneficial ownership information of those entities. Demonstrate how the full beneficial ownership information is available for a “reinstated” entity, including for the years preceding the reinstatement. Demonstrate the effectiveness of the implementation of the obligation for entities to submit beneficial ownership information to the tax administration.

Element A.2: Availability of accounting information

2. Accounting information- significant proportion of non-complying inactive entities

 

Recommendation (A.2, practice)	Spain should review its system whereby a significant number of non-complying inactive companies remain with legal personality on the Commercial Registry.
Underlying factor	The large number of inactive companies that maintain legal personality and do not comply with their filing obligations raises concerns that accounting records might not be available in all cases. (see paragraphs 174, and 176 to 186 of Spain’s 2019 Report for more information)
Summary of actions reported	The actions taken by Spain to address Recommendation 1 apply to address Recommendation 2. For accounting information, the entities themselves remain the most comprehensive source of information, in particular for underlying documentation.
Conclusion	Spain has made progress to address the recommendation. It should report further progress in its next self-assessment. The actions taken help to monitor the situation of non-complying inactive entities. Nevertheless, although the entities with a revoked taxpayer identification number are prevented to interact with a notary in Spain, these entities still have their legal personalities and can still engage in activities abroad. In addition, economic operations of an entity do not require, in all cases, the involvement of a notary. Therefore, it is not established that the process of revocation of taxpayer identification number is sufficient to address the recommendation.
Status determined	In the process of being addressed
Actions required	In its next self-assessment, Spain should: Substantiate how the legal and practical changes sufficiently mitigate the risk of non-complying inactive entities holding assets or conducting activities abroad and of the non-availability of adequate, accurate and up-to-date accounting information of those entities.

EOIR experience

Over the monitoring period 2023-2024, Spain received 1 185 requests and sent 2 096 requests. France, Norway and Germany were the top three partners in respect of incoming requests. The United Kingdom, Switzerland and Germany were the key partners in respect of outgoing requests. Spain reported providing full and final responses to all the requests received.

Nineteen members provided peer input on Spain. Peers reported a good level of satisfaction in respect of their EOIR experience with Spain, for both the answers provided and the requests sent.

New developments having a bearing on the EOIR standard

No recent developments that could have a bearing on the EOIR standard (other than those reported to address recommendations) have been reported by Spain or have otherwise come to light.

Next steps

Spain should continue taking actions towards implementing the standard effectively.

The following next steps are expected from Spain:

• Submit its next self-assessment in 2028 under the second round of enhanced monitoring.

Views/response of the monitored jurisdiction

Spain thanks the Global Forum Secretariat and the Peer Review and Monitoring Group for their valuable work. Spain would like to reaffirm its commitment to the international standard on transparency and exchange of information on request.

Note

← 1.  OECD (2019), Global Forum on Transparency and Exchange of Information for Tax Purposes: Spain 2019 (Second Round): Peer Review Report on the Exchange of Information on Request, Global Forum on Transparency and Exchange of Information for Tax Purposes, OECD Publishing, Paris, https://doi.org/10.1787/997a7b23-en.