2 weeks Ago By Marc Menendez-Roche
Even seemingly innocent trips to the bank to withdraw your savings could get you into hot water – especially if you can’t prove why you’re doing it or where the cash originated. But Spain isn’t the only country doing this. Fancy popping down to the cashpoint with a wad of notes? Think twice.
Spain’s tax authorities are watching – and if they don’t like what they see, you could be slapped with a hefty fine of up to €150,000. The cash crackdown is clearly filling the coffers. By September 2024, Spain’s taxman had already pocketed a jaw-dropping €200 billion – more than the total haul from all of 2018 and up 8% on 2023.
Most Read on Euro Weekly News Electricity price crash: Spain sees 11 hours of zero-cost power this Saturday The ATM habit that could save your wallet — and your bank account No more individual jams or butters in Spain The Agencia Tributaria (Spain’s version of HMRC) has stepped up its crackdown on large or suspicious cash transactions, especially those made at ATMs or bank branches without a clear explanation of where the money came from – or where it’s going. Cash at the bank? Expect questions. Under toughened rules, depositing more than €1,000 in cash requires ID, and any withdrawal or deposit over €3,000 is automatically flagged to Hacienda by the bank.
If you’re using €500 notes, expect that to raise eyebrows too – they’re considered high risk. The same scrutiny applies to large Bizum or mobile app payments . And if you’re shifting €100,000 or more in cash, you must declare it using Form S1.
Fail to do so, and you could be in for a serious sanction. What could it cost you? If Hacienda finds anything suspicious, it can categorise your actions into three types of tax infraction : mild, serious, or very serious . Each comes with its own financial sting: Mild: Fines up to €3,000, with a surcharge of up to 50% of the undeclared amount.
Serious: Fines between 50% and 100% of the amount not properly reported, typically triggered if the sum is over €3,000. Very serious: A devastating 150% fine – and if more than €120,000 is involved, it could be classed as criminal tax fraud. A dubious €100,000 deposit? Say hello to a €150,000 fine.
Picture this: you walk into the bank and deposit €100,000 in cash. If you haven’t declared it properly, and it’s flagged as ‘ very serious’ , Hacienda could hit you with a €150,000 fine – that’s one and a half times the amount you tried to deposit. Not just about the bank.
.. This all follows Spain’s 2021 anti-fraud reforms, which also banned cash payments over €1,000 for most purchases.
So if you’re thinking of buying a car or paying for a renovation in cash, or a second-hand car, you’ll need to use a traceable method like card or transfer. The message from Spanish authorities – and those around Europe – is loud and clear: they want a money trail – and if your cash doesn’t have one, you’ll have some explaining to do. A country getting serious about tax The clampdown is paying off.
Special levies on banks and energy firms raised €2.86 billion last year alone. By September 2024, Spain’s taxman had already raked in a staggering €200 billion, according to Spanish outlet El Mundo – more than the entire haul from 2018 and up 8% on 2023 – with big business footing more of the bill through corporate tax, while falling special tax revenues have sparked fresh plans for hikes in 2025.
Bottom line? If you’re withdrawing or depositing large sums of cash in Spain – whether at a cashpoint, in the bank, or through apps like Bizum – you’d better be ready to justify it. Because when it comes to cold, hard cash, Hacienda isn’t taking any chances. Read more news written for people living in Spain .
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