Hacienda uncovers €1.6 million tax debt of Villarejo over offshore schemes. The Spanish Tax Agency has accused former commissioner Villarejo of concealing €3.5 million in income through offshore companies. Authorities believe he failed to declare earnings from a major private investigation contract.
The Spanish Tax Agency has submitted a new report to the National Court, alleging that former police commissioner José Manuel Villarejo evaded paying more than €1.6 million in taxes in 2012. According to EL PAÍS, this concerns income Villarejo received for a private investigation contract, which he concealed through a complex network of companies in Panama, Uruguay, and the United Kingdom.
Income concealment scheme
In a report nearly 300 pages long, tax inspectors detail how Villarejo used foreign structures to disguise incoming funds. Specifically, in 2012, through affiliated companies and trusted associates, he managed to obtain more than €3.5 million, failing to declare it in Spain. These funds were linked to the King project—a contract from clients in Equatorial Guinea aimed at discrediting one of the president’s sons.
Nearly €2 million of this sum was transferred to accounts in Panama, Uruguay, and the United Kingdom, opened under foreign companies controlled by Villarejo. The remaining €1.65 million, according to the report, was delivered in cash in seven installments. The tax authorities note that neither Villarejo himself, nor his associates, nor his related companies reported these funds in their tax returns.
Offshores and real estate
The document emphasizes that numerous foreign accounts and companies, often registered to front individuals, were used to conceal income. Subsequently, the rights to these structures were transferred to Villarejo himself or his relatives. The tax authorities classify the former commissioner’s actions as deliberate tax evasion, noting the intentional effort to hide control over offshore companies.
The report also mentions overseas real estate registered to foreign firms linked to Villarejo. Among the properties are the Quinta de Juan Idiarte Borda castle in Montevideo (valued at €700,000), another house in Uruguay’s capital (€400,000), and three apartments in the Dominican Republic (with a total value of €1.85 million).
The Villarejo case and parallels with other investigations
The King project was the first episode to draw the attention of the anti-corruption prosecutor's office and marked the beginning of a wide-ranging investigation into Villarejo's activities. Since 2017, he has been involved in several cases, some of which have already concluded: of the nine proceedings in the 'Tándem Operation' case, five ended in acquittal, three in prison sentences (totaling 19.5 years), and one is still ongoing. Villarejo is currently on trial in the Kitchen case, related to illegal surveillance of a former Partido Popular treasurer.
During court proceedings, Villarejo claimed that his network of companies was part of an undercover operation for police work. However, the anti-corruption prosecutor's office rejects this version. Similar capital concealment schemes and attempts to politicize judicial processes have previously drawn the attention of Spanish authorities, as was the case with the Pujol family — more details on this can be found in the article about contradictions between the public stance and actions regarding capital.
Context and consequences
A new tax agency report was submitted to the court in April and is currently under review by the anti-corruption prosecutor's office. If the inspectors' findings are confirmed, Villarejo could face new charges of tax fraud. Authorities continue to investigate other cases related to his activities, as well as monitor foreign assets registered to offshore structures.
