Non-Cooperative Jurisdictions in Form 232: How to Report and Avoid Risks in Spain

Non-cooperative jurisdictions are countries or territories that fail to meet international standards for tax transparency and cooperation, as defined by Spanish regulations (Article 13.4 of the General Tax Law, LGT) and the EU list (Regulation EU 2016/1164). These jurisdictions lack automatic tax information exchange, apply harmful tax regimes, or facilitate opaque structures for tax avoidance. In Spain, Royal Decree 1080/1991 and subsequent updates (e.g., Royal Decree 116/2023) govern the list of non-cooperative jurisdictions, replacing the outdated term “tax havens” in 2021 to reflect broader OECD and EU criteria.

The AEAT’s list of non-cooperative jurisdictions includes countries like Panama, the Cayman Islands, and Bermuda, updated periodically (check at www.aeat.es). Unlike “tax havens,” which focused on low or no taxation, non-cooperative jurisdictions also encompass countries with insufficient transparency or fiscal cooperation. Table: Examples of Non-Cooperative Jurisdictions (2025)

Form 232, regulated by Order HFP/816/2017, requires reporting transactions with entities in non-cooperative jurisdictions if they exceed €36,000 annually, whether or not the entities are related parties. This includes:

The most common transactions requiring reporting include:

Frequent mistakes when reporting on Form 232 include:

Penalties for non-compliance with Form 232, per Article 198 of the LGT, include:

To avoid tax adjustments, transactions must comply with OECD arm’s length principles and demonstrate economic substance:

The AEAT requires consistency between:

EUROACCOUNTS reviews transactions with non-cooperative jurisdictions to ensure compliance and avoid penalties. Example: We validated a €100,000 royalty to an entity in Panama, ensuring economic substance and proper documentation, avoiding a €5,000 penalty.

We keep clients informed about the updated list of non-cooperative jurisdictions and automate controls through integration with ERP systems (SAP, Oracle NetSuite). Benefit: We automatically detect transactions exceeding €36,000, ensuring their reporting on Form 232.

We provide multilingual support in Spanish, English, and French, coordinating between Spanish subsidiaries and foreign parents to comply with DTTs, transfer pricing, and local regulations. Example: We assisted a tech multinational in reporting an €80,000 service with an entity in the Cayman Islands, providing robust documentation during an AEAT audit and avoiding €4,000 in penalties. Contact EUROACCOUNTS for a free consultation to elevate your tax compliance. Learn more about our approach at fiscal compliance or get to know us at about us.

A country or territory with low tax transparency, zero taxation, or lack of information exchange, per Spanish and EU regulations.

If transactions with entities in non-cooperative jurisdictions exceed €36,000 annually, unless economic substance is proven.

Fines of €1,000 per omitted data (minimum €3,000 per return) or 1% of the transaction value, plus tax adjustments.

With contracts, transfer pricing analysis (Local File), and proof of economic substance (offices, employees).

We offer technical expertise, multilingual support, ERP automation, and audit experience to ensure compliance and minimize risks.