The General Treasury of the Social Security (TGSS) is the agency responsible for the Social Security Auctions in Spain and the collection of all Social Security resources, both voluntarily and in executive channels, being able to press the debtor’s assets.

For this purpose, it is empowered by Law to seize its assets and sell them in public auction for the outstanding debt.

Auctions are the last phase of the administrative enforcement procedure to enforce the collection of previously seized goods from the debtors of the Social Security.

The funds that are obtained in the auctions are to settle the outstanding debt of the debtor, and in the case of having surplus monies it is returned to the debtor.

The debtor has the option to stop the procedure at any stage before the auction by paying the outstanding debt owed to the Social Security, which is why many of the auctions are withdrawn.

Advertising of Social Security Auctions in Spain

The General Treasury of the Social Security, as a result of the enforcement procedures that follow against the debtors of the same, is obliged to announce the auctions that it holds for the sale of the seized assets and, in this way, enable any interested person can go and bid on them.

Auctions of seized assets promoted by the Provincial Directorates of this General Treasury are published on the Seg Social website. There is a list of the various Government websites who hold auctions of various items here.

With the start-up of this service, it is intended to give maximum publicity to the auctions that are held, in order to achieve the greatest concurrence of bidders.

For more information, those interested can go to the Provincial Directorate of the General Treasury of the Social Security where the asset or goods in question will be auctioned, to the Executive Collection Unit itself (URE)

Assets Seized for Auctions

The General Treasury of the Social Security sells by public auction, farms (rustic and urban), vehicles, boats, machinery of various types, office furniture, office equipment and all kinds of movable or immovable property attached to the debtors of the Security Social.

Who Can Participate in the Auctions?

With the exception of the staff of the Executive Collection Unit, the appraisers, the depositories of the goods and the officials directly involved in the enforcement procedure, any person, by himself or through a representative, who has the capacity to act in accordance with the law and do not incur the exceptions and incompatibilities established by law.

Requirements To Take Part in the Auction

In order to participate in the Social Security Auctions in Spain it is necessary:

To prove your personal identity, in the case of foreigners, the passport, the travel title or another document that proves your identity. Likewise, the identity of the representation should this be the case.

Deposit 25 per cent of the starting price of the property for which you wish to bid, by certified check, in the name of the General Treasury of the Social Security, which will accompany the bid that is enclosed in a sealed envelope, or 30 percent of said price if the bid is verbal.

Issues of interest to consider

Bidders may submit bids in a sealed envelope up until the business day immediately prior to the auction where the property or goods in question will be auctioned.

In the act of the auction, prior to the opening of the envelopes, the Presidency will summon the bidders, if verbal bids are not made, the Secretary of the Bureau will present aloud the bids made in writing, and the following rules will be observed.

The auction will be approved in favor of the highest bid, if it exceeds 60 percent of the auction type or being lower if it covers at least the amount of the debt.

Similarly, if the bid is less than 60 percent and does not cover the debt, provided that it exceeds at least 25 percent of the type of auction, by reasoned resolution of the Provincial Director of the General Treasury of the Social Security.

If several offers coincide preference will be given in the award to the first registered bid.

Assets that are not sold at auction, may be subject to a second auction to be held under the same conditions as the first.

Once the auction is concluded, the Secretary of the Bureau will proceed to return the deposits that have been made, keeping those presented by the successful bidders.

The successful bidder who does not complete the payment within the said period of the auction notice, will lose the amount of the deposit and will be obliged to compensate the General Treasury of the Social Security for any damages arising from the breach.

The successful bidder may assign his right to a third party that does not incur a prohibition to tender by appearing both in the Provincial Directorate within five business days following the auction, proving the payment of the award price.

This is the basic format for Social Security auctions in Spain but you should check directly with the office holding the auction as formats and laws can change.