Government bans cash payments over €2,500

Government bans cash payments over €2,500

Update 18 November: This measure comes into force tomorrow and will apply to any operation in which an autonomo, professional or business is involved. The new rules were published in the BOE on 30 October, and the Agencia Tributaria (AEAT) expects that it will limit cases of fiscal fraud. AEAT says that over the past five years some 1.5 billion Euros has been “regularized” from inspections which have detected cash transactions. Sanctions for those breaking the new regulations will involve fines of 25% of the amount of the illegal operation with both parties to the transaction being held responsible. Moreover, sanctions can accumulate, so that if an autonomo is regularly paid in cash, he can be fined not only for the cash taken, but also for unpaid VAT and taxes.

Original post 11 April: The new Spanish PM, Mariano Rajoy, has announced that business cash transactions of over €2,500 are to be banned as an anti-fraud mechanism to increase tax income for the Government. Breaches of the rule will result in fines of 25% of the value of the payment. Sr Rajoy mentioned the reform in a Q&A session in Parliament, so more details will no doubt be forthcoming when the measure is formally announced.

3 Comments

  1. Do you know if this limit is any single transaction or an accumulation of all transactions over a given period (i.e. in a single year)

  2. Author

    It applies to individual transactions.

  3. Thanks Janet.

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