Can You Sell a House Seized by the Tax Authorities?
Do you have a house seized by the Tax Authorities and are thinking about selling it? Or maybe one of your assets has been seized and you're unsure what happens next. Don’t worry - it's a complex situation, but if you're wondering whether you can sell a house seized by the Tax Authorities, know that it is possible and there is a solution.
When someone fails to pay their taxes, the Tax Agency (Hacienda) can seize assets such as houses, cars, or bank accounts. These assets can then be sold to settle the debt. This entire process is regulated by the General Tax Law.
But when can these assets be sold? How does the process work? In this article, we explain how to sell a house seized by the Tax Authorities.
What is a Seizure by the Tax Authorities and When Does it Apply?
Before understanding whether you can sell a house seized by the Tax Authorities, it’s important to know that asset seizure is a forced enforcement measure adopted by the Spanish Tax Agency when a taxpayer - whether an individual or a company - fails to meet their tax obligations within the legal deadlines.
Once the voluntary payment period ends without the debt being settled, and after the enforcement order is issued, the procedure begins. At this point, the administration can proceed to seize assets in order to recover the outstanding amount, including surcharges, interest, and procedural costs. This action is based on Article 172 of Law 58/2003, of December 17, General Tax Law.
When Can a House Seized by the Tax Authorities Be Sold?
You can sell a house seized by the Tax Authorities, but not immediately after the seizure. First, a final liquidation of the tax debt must be issued. Only once that decision is final can the process of disposing of the seized asset begin. This sale can take place through three main channels: public auction, tender, and direct award.
Public Auction: The Standard Way to Sell a House Seized by the Tax Authorities
A public auction is the most common way to sell a house or any other property seized by Hacienda. This is carried out electronically through the Spanish Official State Gazette’s Auction Portal (Portal de Subastas del BOE). Seized properties such as homes, vehicles, or personal property are valued by the tax collection authorities based on market conditions and the valuation is communicated to the debtor. If the debtor disagrees with the assigned value, they can request a counter-appraisal.
Once the auction starting price is set, the corresponding announcement is published in the Official State Gazette (BOE), including the debtor's information, the assets to be auctioned, the auction start date, and the electronic address for participation. The auction opens at least 24 hours after publication and remains active for 20 calendar days. The minimum bid is usually 10% of the auction value. However, if the properties have charges equal to or greater than 25% of the appraised value, the auction may extend up to one hour after the last bid, with a maximum extension of 24 hours.
Participants must register electronically and place a prior deposit: 10% for personal property and 5% for real estate. After the bidding period ends, the Auction Board meets within 15 days to award the property to the highest bidder or declare the auction void.
Tender: An Alternative in Special Cases
Tender is an alternative method by which a house seized by the Tax Authorities can be sold. This option is considered when a public auction is not advisable, either due to the nature or magnitude of the seized assets or for reasons of public interest. This mechanism requires express authorization from the competent authority and is published both in the BOE and in the official gazette of the corresponding territorial jurisdiction.
The tender notice includes the assets to be sold, the deadline for submitting offers, participation requirements, payment methods, and the required deposit amount. It may also include special conditions related to the use of the assets and the financial solvency of the bidders. After the offer submission deadline, the competent authority has five days to award the assets to the most advantageous offer or declare the tender void. In this case, direct award becomes the final available option.
Direct Award: When No One Bids at Auction or Tender
Direct award is the final option to sell a house seized by the Tax Authorities. It is applied when, after a public auction or tender, assets remain unsold. It can also be used when justified reasons make it impossible to carry out a public sale, such as in urgent situations or when an auction cannot be organized.
The process begins with a notice on the electronic site of the relevant administration, setting a period for submitting electronic offers. The minimum award price will be the tender price (if the property was part of a tender) or the estimated market value in other cases. However, if those values are not reached, Hacienda can still award the property without a minimum price.
The award is formalized through an administrative resolution. If the buyer does not pay within the established timeframe, they may be held liable for any damages. Finally, if a third party offers the tender price before the award is finalized, the property may be directly transferred to that party.
Who Can Buy Properties Seized by the Tax Authorities?
Yes, a house seized by the Tax Authorities can be sold, and any legally capable person can participate in an auction, tender, or direct award to buy the property provided they are not legally barred from doing so. Excluded parties include officials directly involved in the process, employees of the tax collection body, appraisers, or asset custodians. To participate in electronic auctions, users must register on the BOE system and have a valid digital identification method, such as an electronic ID or digital certificate. This ensures transparency and traceability of the process.
What Types of Assets Can the Tax Authorities Seize?
The Tax Agency can seize various types of assets, depending on the debt amount and the taxpayer’s estate. The most common assets are:
• Real estate (houses, commercial properties, plots of land)
• Bank accounts
• Vehicles
• Company shares
• Movable property (machinery, furniture)
• Credit rights or rental income
These assets are valued based on market criteria. In the case of real estate, it is common to consult the Land Registry, the cadastral value, or technical reports.
Tips if you Want to Buy a Property Seized by the Tax Authorities
Now that you know a house seized by Hacienda can be sold, be aware that participating in an auction or acquiring seized assets can be an attractive opportunity for investors or individuals looking to buy a property at a lower price. However, it is essential to:
• Check the legal status of the property, especially in the case of real estate (existing charges, tenants, permits).
• Carefully review the auction or tender conditions.
• Keep in mind that payment must be made within short deadlines after the award.
• Consult with a lawyer specialized in tax law or a real estate manager before placing a bid.
Can You Sell a House Seized by the Tax Authorities? Here's How to Do it Legally
Yes, it is possible to sell a house seized by the Tax Authorities, but the process follows a specific legal pathway within Spain’s tax enforcement system. The sale does not occur immediately after the seizure: first, there must be a final settlement of the tax debt. Once that is definitive, the property can be sold via public auction, tender, or direct award. These procedures are regulated and ensure transparency, legality, and efficiency - for both debtors and those looking to buy a repossessed house in Spain at a fair price.
At Hoffmann Real Estate, we’re with you every step of the way if you want to sell a house, whether it's seized by Hacienda or a conventional sale. We know the market and help you make confident decisions so you can move forward with peace of mind.
