Officials are investigating suspected undeclared commissions, cash payments and potentially unlawful charges imposed on tenants and prospective buyers.
Spain’s Tax Agency has inspected ten estate agencies in Alicante province as part of a nationwide operation targeting suspected tax fraud and undeclared cash payments in the property sector.
The coordinated investigation, codenamed Operation Insulae, involved 170 Tax Agency officials and covered 41 estate agencies across 12 provinces in six autonomous communities.
Almost a quarter of the businesses inspected were in Alicante, reflecting the province’s position as one of Spain’s most active property markets.
A further nine premises were visited elsewhere in the Valencian Community, alongside seven in Andalusia, one in the Balearic Islands, four in the Canary Islands, five in Catalonia and five in Madrid.
The inspections have led to formal checks being opened into 49 companies and self-employed business operators. Eighteen individuals linked to those businesses, including company directors, shareholders and relatives, are also under investigation.
Undeclared Fees and Cash Commissions
The operation is focused on payments received by estate agencies and property professionals that may have been concealed from the tax authorities or only partially declared.
Investigators are examining allegations that some businesses accepted commissions in cash, charged tenants fees prohibited under Spain’s Housing Law or demanded undeclared payments for services such as arranging property viewings and preparing reports.
The Tax Agency is also investigating claims that sales staff received percentage-based bonuses or other payments that were not recorded on their official payslips.
The investigation follows a series of tax complaints alleging potentially systematic fraud among the companies selected for inspection.
According to the Tax Agency, some businesses may have used cash payments to conceal income, while others may have failed to declare all the fees collected from customers.
The inquiry is understood to relate specifically to charges imposed by agencies and property professionals, rather than undeclared payments demanded directly by landlords.
Growing Property Market Under Scrutiny
The operation comes amid sustained growth in Spain’s property market and continued increases in house prices.
Estate agencies are estimated to be involved in around 70 per cent of property transactions, placing them at the centre of a market generating billions of euros each year.
The role of estate agencies has also expanded considerably. Many businesses now offer services beyond simply introducing buyers, tenants, sellers and landlords.
These services can include property valuations, accompanied viewings, price negotiations, mortgage and financing assistance, legal and financial advice, document preparation and the signing of rental agreements.
Tax officials believe this wider range of services has created more opportunities for additional fees to be collected without being properly declared.
Unexplained Signs of Wealth
Investigators also examined company owners and shareholders whose apparent wealth may not correspond with the income declared through their businesses.
The Tax Agency suspects that hidden transactions and undeclared sales may have contributed to increases in the personal assets of some individuals connected to the companies under investigation.
During the simultaneous inspections, officials obtained accounting records, supporting documentation and information stored in company computer systems.
The material will now be analysed as part of detailed investigations expected to continue over the coming months.
Where irregularities are confirmed, the Tax Agency may demand the payment of outstanding tax, impose financial penalties or open further lines of inquiry.
Wider Crackdown on Cash-Based Fraud
Operation Insulae forms part of the Tax Agency’s 2026 Control Plan, which places particular emphasis on businesses making extensive use of cash and individuals whose wealth, assets or profitability appear inconsistent with their declared income.
The plan also calls for stronger monitoring of fraud connected with the property industry, including the concealment of commissions and income from associated services.
This is the 27th large-scale, coordinated operation targeting a specific business sector carried out by the Tax Agency in just over a decade.
Authorities say the operations are intended not only to identify unpaid tax and bring businesses into compliance, but also to deter others from using similar methods to conceal income.
