When a taxpayer builds up debts with the tax authorities and does not pay them, Hacienda can seize their assets and put them up for auction to recover the money. Those auctions are public and anyone can take part, which opens a route to acquire property or vehicles below their market value.
In this article
How they differ from a judicial auction
It works much like a judicial auction, but here it is the tax administration running it, not a court. The procedure is administrative and goes through the official auction portal, with its own deadlines and conditions.
The auction portal
Hacienda's auctions are published on the State's official auction portal, with the description of the asset, the starting value and the conditions. That is where you see what is up for auction and where bids are submitted.
The prior deposit
To bid you must lodge a deposit, a percentage of the asset's value that is held as a guarantee. If you are not the successful bidder, it is returned; if you win and do not pay the rest, you may lose it.
The bid and the award
During the open period, interested parties bid. At the close, the asset is awarded to the best offer that meets the conditions, and the successful bidder must pay the rest of the price within the established deadline.
What to check before bidding
As in any auction, a low price is only a bargain if the asset hides no surprises. You need to check the charges and debts on the property, its position at the land registry and, if it is a home, whether it is occupied. A seized asset may have other earlier charges that the buyer takes on.
At an auction there is no easy way back: if you win, you commit to paying. That is why all the checks (charges, debts, condition of the asset, real valuation) must be done before bidding, not after. A hasty purchase can prove costly.
Is it worth it?
Hacienda's auctions can be a good opportunity for investors who know how to analyse the asset and handle the procedure. As with the other routes into property investment, what counts is the groundwork beforehand, far more than luck in the bidding.
At Equus Capital we work with investors in Hacienda and judicial auctions: we analyse the asset, the charges and the risk before you bid. First consultation free and with no obligation.
Frequently asked questions
What are Hacienda's auctions?
They are public auctions in which the tax authorities (Hacienda) sell assets they have seized from debtors (property, vehicles, shareholdings) to recover outstanding debts. Anyone can take part and acquire them, often below market value.
How do they differ from a judicial auction?
The mechanism is similar, but in Hacienda's auctions the body carrying it out is the tax administration and the procedure is administrative, not judicial. They are managed through the State's official auction portal.
Do you have to pay a deposit to bid?
Yes. To take part you must lodge a deposit, a percentage of the asset's value that acts as a guarantee. It is returned if you are not the successful bidder, but you may lose it if you win the auction and then do not pay the rest of the price.
What should you check before bidding at a Hacienda auction?
The charges and debts on the asset, its position at the land registry and, if it is a home, whether it is occupied. A seized asset may carry earlier charges that the buyer takes on, so all the checks must be done before bidding.