May 8, 2017

Nowadays, Spanish Tax Authorities tend to initiate liability transfer procedures against the Directors of a company when the latter itself is not able to settle its tax obligations. Should this be the case, the tax residence of the Directors whose personal assets are at risk is of no relevance.

Since 2015, both Directors and companies may even be held criminally liable (e.g. in case of offences performed by any of their employees), with a mandatory dissolution of the Company in extreme cases.

If legal compliance provisions are complied with, however, criminal consequences may be avoided.

Due to our experience in this regard, we shall be glad to support you and your clients should they have such type of problems.