Operation led by the European Public Prosecutor's Office with the participation of the Tax Agency and the National Police

• This is an operation carried out at European level in which EUROPOL participated with the National Police and the Tax Agency along with police authorities from Greece, France and Bulgaria, in which it is estimated that the amount defrauded in Europe exceeds 700 million euros.

• In Spain, the amount defrauded amounts to 56 million euros and six people have been arrested, in addition to five investigated but not detained, and ten searches have been carried out in which 475,000 euros in cash and 490,000 in crypto-securities have been seized.

• They usurped the identity of Spanish companies to pretend that these companies, and not the organization, were responsible for the taxes payable on imports.

June 26, 2025.- Officials from the Tax Agency's Customs Surveillance and National Tax Agency (ONIF), in a joint operation with the National Police, led by the European Public Prosecutor's Office and involving police forces from Greece, France, and Bulgaria, have dismantled a criminal organization dedicated to tax fraud involving the import of goods from China. The organization allegedly defrauded more than €56 million in Spain and a total of more than €700 million in Europe.

In Spain, six people have been arrested, and ten searches have resulted in the seizure of €475,000 in cash and €490,000 in cryptocurrencies. They impersonated Spanish companies to pretend that these companies, and not the organization, were responsible for the taxes payable on imports.

The investigation stemmed from a 2023 complaint filed by an Almería-based company. After receiving a request from the Tax Agency for allegedly defrauded VAT payments, it realized its business identity had been stolen in connection with intra-Community transactions in which it had not participated. 

The dismantled organization was dedicated to the import of goods, mainly textiles, from China without meeting its VAT obligations. They impersonated Spanish companies, which knew nothing about these operations, to pretend that these companies, and not the organization, were responsible for the tax payments due on imports. The vast majority of the products were ultimately sold in various Chinese bazaars.

100 Spanish companies hijacked to commit fraud

The goods from China were purchased by Bulgarian merchants, who acted as fronts, including mere front men such as partners and directors. These simulated sales transactions to Spanish companies, unrelated to the fraud, in some cases well-known and unaware of these transactions.

In this regard, around 100 Spanish companies have been identified as victims of identity theft. These are companies spread throughout Spain.

Once the merchandise was cleared through Greek customs, it was transported to Italy and from there to various European countries, such as Spain. It thus became phantom merchandise and was difficult to trace. Finally, they were sold by the criminal organization to Chinese bazaars located in various Spanish areas, especially the Cobo Calleja industrial estate in Fuenlabrada, or PICA, on the Carretera Amarilla in Seville.

In fact, the criminal organization handled large amounts of cash that it received in payment for the delivery of merchandise. The organization's branch in our country operated as a transport logistics company, sometimes transporting cash from trucks and carriers to go unnoticed.

Operation at European level in Spain and 13 other countries

The investigation, carried out by the EPPO and codenamed 'Calypso', covers 14 countries: Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, Italy, Poland, Portugal, Slovakia, Slovenia and Spain. A total of 101 searches were carried out at customs brokerage offices, companies controlled by the organized criminal groups under investigation, the homes of suspects, and the offices of tax advisors and representatives, lawyers, accountants, and transport companies in Bulgaria, Greece, France, and Spain. Ten people have been arrested, and firearms and knives have also been seized at the homes of three suspects.

€5.8 million has been seized (€4.75 million of which is in Greece and the remainder in France and Spain), in various currencies, including Hong Kong dollars, euros in digital wallets, and cryptocurrencies. A total of 7,133 electric bicycles and 3,696 electric scooters have also been seized, in addition to 480 containers for inspection and verification at the Port of Piraeus.

The fraud began with undervaluing the merchandise arriving in the EU.

The fraudulent scheme began with the introduction of goods from China into the European Union, primarily through the port of Piraeus (Greece), with a significant undervaluation or incorrect reclassification of the products to evade customs duties—using false documents to conceal the true value and nature of the goods. A network of professional facilitators operating at the customs point of entry, such as customs brokers, service providers, and accounting firms, facilitated the initial clearance and apparent purchase and transportation of the goods by companies primarily registered in Bulgaria but operating in Greece with a Greek VAT number.

The goods were then sold to companies established in other Member States, allowing the first apparent buyer to benefit from an import VAT exemption based on Customs Procedure 42 (CP42). This procedure, created to simplify cross-border trade, exempts importers from paying VAT in the country of import if the imported goods are subsequently transported to another EU Member State.

Through a chain of interposed and front companies, the goods were apparently sold to companies in specific Member States, where they are supposedly sold on the market. These destinations included Bulgaria, Czech Republic, Denmark, Germany, Hungary, Italy, Slovakia, Slovenia and Spain. However, these fake end buyers never received the goods and operated as defunct merchants, without paying VAT. In some cases, criminal organizations used the identity documents of legitimate companies, fraudulently impersonating their VAT numbers to conceal the true destination of the goods.

Once the goods entered the EU, they were stored in warehouses and locations controlled by criminal organizations, from where they were transported, with false documents, to France, Italy, Poland, Portugal, and Spain (the real destination countries). These Chinese logistics centers, where all goods were stored, operated as highly controlled warehouse districts, functioning almost like exclusive communities accessible only to members of the criminal groups that run them.

Shipping documents were destroyed as soon as the goods were delivered, and they were then sold to end customers, primarily on the black market, for cash, as part of a highly hidden parallel economy.

Comprehensive criminal enterprise

The criminal organizations under investigation were responsible for producing false invoices and shipping documents to conceal the true destination of the goods, and for recruiting a large network of front companies used for fake sales and deliveries to conceal the entire fraudulent chain. This allowed companies controlled by criminal organizations to sell products at a very competitive price, since VAT is not paid and customs duties and anti-dumping taxes are largely evaded.

Ultimately, the proceeds of the crime were transferred to China using various money laundering techniques, including the provision of money laundering services to other criminal organizations through underground trade-based banking systems. In this way, organized criminal groups controlled and concealed the entire criminal chain, from the initial fraudulent importation to VAT fraud, and from the sale of goods to the laundering of profits.

Estimated fraud across the EU exceeds €700 million, of which more than €56 million corresponds to unpaid taxes paid to the Spanish Treasury.

In our country, 10 entries and searches have been carried out in various cities –Madrid (5), Badajoz (1), Badalona (1), Elche (1), Manises (1), Seville (1)- and six people have been arrested –Badajoz (4), Seville (1) and Madrid (1), in addition to five investigated persons who have not been arrested, as well as the blocking of numerous financial products and different real estate and vehicles. The operation resulted in the seizure of €475,000 in cash and €490,000 in cryptocurrencies. In addition, eleven properties, 27 vehicles, and luxury items (handbags, watches, and jewelry) have been seized.