Three winters ago, a brown envelope from Hacienda — Spain's tax authority — appeared in my letterbox on a Tuesday.

I let it sit on my desk until Friday. Not because I'm lazy—because I didn't know what was in it, and my imagination ran worse scenarios than reality ever could. Modelo 720 penalties (€10,000 minimum). Permanent establishment audits. Tax residency challenges that would unravel everything.

Opened it on Friday at 6 pm. It was a confirmation receipt for a filing my gestor — tax advisor — had already submitted. Routine paperwork. Three days of low-grade panic for nothing.

Since then, I run a November review. Takes about an hour. You learn which letters matter, what your 2026 structure should actually be, and who to call when something looks wrong. Beats the spiral.

Here's the system.

Spain sends mail in roughly four flavors. All look serious. Most aren't.

Notifications — confirmations or updates. File them. No action will be taken unless they specifically request something.

Information requests — they want documents or clarification. You've got a deadline (usually 10 business days). Scan it, get it translated if needed, and respond.

Proposed assessments — they think you owe money or missed a filing. Do not reply by email. Get your accountant on the phone today.

Collections language — words like "liquidación" — settlement, "ejecutiva" — enforcement, or "apremio" — collection notice. Call your accountant immediately. Like, now.

What helps: When mail arrives, photograph it, name the file by date, and place it in a folder. If it says "Agencia Tributaria" and you're unsure, consult your accountant before taking action. Mine replies within two hours. Yours should too.

You're likely in one of three lanes. Use this to spot problems early, not as legal advice. Book a paid review to lock it in.

Foreign employee living in Spain

If a US or UK company still pays you as an employee and you spend more than 183 days in Spain, Spain considers you a tax resident. That means filing Modelo 100 (annual income tax) and possibly Modelo 720 (reporting foreign assets exceeding €50,000).

What to check now: Does your employer understand Spanish tax residency? Are they withholding Spanish tax, or are you covering it yourself on a quarterly basis? Do you have a certificado de retenciones — withholding certificate — for year-end?

If your employer switched you to contractor status to avoid Spain complications, that's a different structure entirely. See below.

Autónomo — self-employed

If you invoice clients with a Spanish CIF, you are required to file quarterly (Modelo 130 income, Modelo 303 VAT) and pay Social Security monthly (€300-400, regardless of whether you invoice or not).

What to check now: Are your facturas (invoices) formatted correctly? Is someone competent to handle quarterly filings? If you cross-invoice EU clients, are VAT and retentions handled properly?

The mistake here is assuming "it's probably fine" until you receive a letter stating otherwise.

Foreign Ltd while living here

If you run a UK Ltd or US LLC and live in Spain full-time, you're in permanent establishment territory. Spain may argue your company has a taxable presence here because you—the director—work from here.

What to check now: Do you have a clean legal opinion on PE risk? Should you open a Spanish SL? How are you handling salary, dividends, and director fees?

This is the lane where €5,000 in penalties shows up two years later because nobody explained the rules properly.

Keep a single folder with the following six items. Print them or keep PDFs organized. When your accountant requests documents, you send them in within five minutes, rather than spending two hours searching.

ID set — passport, NIE or TIE, latest padrón (town hall registration)

Money set — Spanish IBAN, twelve months of statements, last year's tax returns (Spain and home country)

Work set — invoices with CIF, contracts, employer letters, proof of tax withholdings

House set — lease or title deeds, IBI receipt, comunidad — homeowners association — fees

Help set — your accountant's contact info, plus a backup name if they ghost

This is what accountants request anyway. Having it ready signals competence, gets faster responses, and prevents the "I need three more documents" email chains that eat your week.

¿Esta carta es una notificación o un requerimiento? — Is this a notification or a request for information?

¿Podemos revisar mi situación fiscal por videollamada esta semana? — Can we review my tax situation via video call this week?

If you've got a Hacienda letter sitting on your desk, photograph it and send it to your accountant today. If you don't have an accountant you trust, that's the actual problem.

If you're unsure about the structure you should use in 2026, book a one-hour paid consultation with someone who handles remote professionals daily. It costs €150-250. A flawed structure can cost €3,000-10,000 in penalties, plus the emotional distress of dealing with it.

Not bad for a Friday.

— A. and the mostly sober WaypointSur team

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