Deferring Tax Payments in 2026: When It’s Possible and What the Tax Agency Requires

When cash flow gets tight, one of the most useful and most underused mechanisms in the tax system is the deferral or instalment payment of debts owed to the Tax Agency. It is not a favour or a discount: it is a right regulated by the General Tax Law and its collection regulations, and it allows you to pay later, or in instalments, what you already owe. It pays to know the rules before you need them, because mistakes in how the request is framed can be costly.

What can be deferred and what cannot

As a general rule, tax debts can be deferred or paid in instalments when the taxpayer’s economic and financial situation temporarily prevents them from paying on time. The key word is temporarily. If the difficulty is structural, the AEAT will take that into account when assessing the request.

There are exclusions that directly affect freelancers and companies, and you should be clear about them:

• Withholdings and payments on account (for example, those under Form 111 or 115) and Corporate Income Tax instalment payments, where they are mandatory, generally cannot be deferred. They are treated as money belonging to third parties or as advance payments that must be paid on time.
• Output VAT (VAT charged to customers) follows, in principle, a similar logic, with nuances depending on the case, so it is prudent to check your specific situation before taking anything for granted.
• There is a specific regime for small debts, with a threshold set by regulation, under which you can defer without providing guarantees. Always check the current amount on the AEAT’s online portal, as it has been updated in the past.

How the request works

The request is filed electronically, using a digital certificate, Cl@ve or another accepted identification method. It must be made during the voluntary payment period: if the debt is already in the enforcement period, the approach changes, surcharges come into play and the options are more limited. This is by far the most frequent cause of problems: waiting until the deadline has passed before acting.

The request states the debt, the proposed payment schedule and the payment method, usually direct debit. For amounts above the guarantee exemption threshold, the AEAT may require guarantees (a bank guarantee, a surety insurance policy or, in certain cases, other options), or accept the request without them if you show that the lack of a guarantee would jeopardise the viability of the business. Late-payment interest accrues on the deferred debt, so it is not free financing, although it is usually cheaper and more flexible than other forms of credit.

A practical point: while a request filed within the voluntary period is being processed, the enforcement period does not begin for that debt. But if it is later denied, you must pay within the deadlines indicated, and if you do not, the enforced collection procedure is opened. And if you miss a payment in the granted schedule, the deferral may be cancelled and the remainder claimed, with the consequences that follow.

What this means for your business

In practice, these are the decisions that make sense to take:

• Act ahead of the due date. If you expect not to be able to pay a quarterly VAT return or Corporate Income Tax, prepare the request before the voluntary period ends, not after.
• Always file the return. Deferring does not exempt you from filing on time. Submitting the self-assessment and requesting the deferral are two separate steps; skipping the first exposes you to avoidable penalties and surcharges.
• Separate what can be deferred from what cannot. Plan cash for withholdings and instalment payments, which you will hardly be able to postpone, and keep deferral for other debts.
• Propose a realistic schedule. A somewhat longer plan you can keep is better than a tight one you default on at the second instalment.
• Compare the cost. Weigh the late-payment interest against that of a loan or credit line; sometimes deferral comes out better, and sometimes it is not worth the burden of guarantees.
• Keep your accounting up to date. To justify your cash position, the AEAT may ask for financial information; having well-organised books speeds up and strengthens the request.

Finally, remember that the specific conditions (thresholds, interest rates, guarantee requirements) can change. Before filing anything, check the current figures on the Tax Agency’s online portal or with your adviser.

At Zythos Business we support freelancers and SMEs in these situations: we review which debts can really be deferred, work out the schedule your cash flow can sustain, and make sure your returns are filed on time and your accounting is ready to back up the request. Acting early always costs less than correcting later.