The Audiencia de Barcelona, Barcelona’s provincial court, has ordered the Catalan Tax Agency to refund €1,440.40 taken from a man whose sole income was a €975.61 monthly permanent disability pension. The court found that the money was protected because his income was below Spain’s statutory minimum wage threshold.

The ruling matters for Barcelona residents who depend solely on low pensions or benefits: the court said income below the salario mínimo interprofesional (SMI), Spain’s statutory minimum monthly wage, cannot be seized through an embargo. The SMI cited in the case was €1,166.67 a month.

Two account seizures in 2022

According to reporting on the ruling, the Catalan Tax Agency withdrew money from the man’s bank account in 2022 to collect administrative penalties. The court ordered the full return of both sums, with interest for late payment.

  • €579.70 was withdrawn in one embargo.
  • €860.70 was withdrawn in a second embargo.
  • The man’s permanent disability pension was €975.61 per month, €191.06 below the SMI figure used by the court.

The man said the withdrawals left him unable to meet basic costs, including food and essential bills. The court did not award separate compensation for those effects.

Court cites protection for income below minimum wage

The Audiencia de Barcelona based its decision on the Spanish Civil Procedure Act, Ley de Enjuiciamiento Civil, and the General Tax Act, Ley General Tributaria. Under the protections applied by the court, earnings below the SMI are exempt from embargo.

The agency had argued that the legal challenge had been filed too early. Judges rejected that argument, finding that the man had not been properly informed about the relevant administrative deadlines. The court said rejecting the appeal in those circumstances would reward administrative errors.

People whose sole monthly income is below the €1,166.67 SMI threshold cited in the ruling can compare that figure with any pension or benefit affected by an embargo when considering an appeal. The Catalan Tax Agency may appeal the court’s decision.

Primary sources: serviciostelematicosext.hacienda.gob.es. Reported by russpain.com, CENDOJ, Dani Cordero, Publicado por El equipo de Asevi, jda.es, primeralecturaediciones.com, Carlos Sánchez, diariolaley.laleynext.es, elnotario.es.