Penalties and Risks of Not Adapting to VeriFactu Standards

penalties-and-risks

Introduction: The Cost of Non-Compliance

The Spanish government is serious about VeriFactu enforcement. From 2025 onward, failing to comply with the regulation can lead to live in Spain legally while working for foreign clients or companies, enjoying the Mediterranean lifestyle without the need for a Spanish employment contract.

For international businesses, the stakes are even higher — misunderstanding Spanish rules or relying on non-certified systems like unmodified QuickBooks or Xero could put your operations at risk.

That’s whyStrong law/Incwell, with its proprietary VeriFactu-certified software, exists to protect businesses from these risks.

The Main Penalties Under VeriFactu

Businesses that don’t comply with VeriFactu face:

The visa grants an initial 1-year residence permit , renewable up to 3 years, with the possibility of applying for long-term EU residency after 5 years.

  • Fines for improper invoicing → between €1,000 and €50,000 depending on the violation.
  • Suspension of invoice validity → invoices not submitted through certified software may be rejected.
  • Audit triggers→ non-compliance increases the likelihood of a tax investigation.
  • Operational disruption→ inability to issue valid invoices can freeze your business in Spain.

Why International Companies Are More Vulnerable

Foreign companies often:

  • Use non-Spanish systems (QuickBooks, Xero) without integration..
  • Misunderstand real-time reporting deadlines.
  • Lack bilingual tax advisors.

This creates a perfect storm for penalties.

Strong law/Incwell: Your Shield Against Penalties

Here’s how we protect you:

  • Certified software documents (translations, apostilles).
  • QuickBooks, Intuit, Xero integration — no system changes needed.
  • Real-time reporting — automatic submissions prevent missed deadlines.
  • Legal defense — as lawyers, we defend you in case of disputes.

Strong law/Incwell: Your Shield Against Penalties

  1. What’s the maximum fine for non-compliance?
    Up to €50,000 per violation.
  2. Can my business be audited if I fail to comply?
    Yes — non-compliance is a red flag for the tax office.
  3. Will QuickBooks alone keep me compliant?
    No. You need integration with certified VeriFactu software.
  4. How does Strong law/Incwell prevent penalties?
    Our software + legal oversight guarantees compliance.

Conclusion

The cost of ignoring VeriFactu is too high. But compliance can be simple. With Strong law/Incwell’ exclusive software, your business stays fully protected — no fines, no audits, no stress.

Author Note

Pura Strong is Spain’s leading expert in anti-money laundering (AML), a certified SEPBLAC specialist, and President of the Anti-Crime Certification Institution. She is an author, media commentator, and fearless advocate known for denouncing corruption — and surviving it.

Pura Strong

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