Hacienda and pension payments

Good afternoon.

I have permanent residency in the Canary Islands. I am 74 years old.

I have just started receiving a non-contributory Spanish pension. I received my first pension payment in December 2024. It included pension payments for the previous 7 months, as I first applied in May 2024.

There has been no income in my account for a few years, apart from this recent pension payment in December 2024.

Hacienda placed an embargo on my bank account due to unpaid taxes from a company I owned, which went bankrupt in 2021. As the company's administrator, I became responsible for the tax debts owed if the company, which no longer exists, could not pay. Everyone told me that the Treasury could not touch my pension. However, Hacienda took the first payment of €3500 even though this was for the preceding 7 months. When I visited Hacienda, they agreed that they could not take anything if the monthly income was less than the national minimum wage. They also said they looked at each month's income and that in December 2024, I received €3500, which was more than the minimum wage, so they could keep it. This was despite the fact that I had received pension payments for the preceding seven months. I am behind on my rent, and that €3500 payment, which I knew was coming, was how I was going to pay the rent owed. I am currently facing eviction for non-payment of rent.

My only income is my Spanish pension. Is it possible to challenge Hacienda and reclaim that €3500?

I would greatly appreciate your guidance on whether it would be worthwhile to challenge Hacienda on this matter.

Thank you.

Stevie Bird