In times of uncertainty — whether due to extreme weather events, wildfires that force evacuations, or power outages like the one experienced a few months ago — keeping cash at home has regained importance.

While there’s no strict limit on how much cash you can physically carry on the street, Spanish regulations set certain rules. Since 2007, the Ministry of Finance has required that any cash movement into or out of Spain of €10,000 or more must be declared. In addition, you cannot pay for goods, services, rent, etc., in cash amounts exceeding €1,000 in a single transaction.

Within Spain, you must declare any movement of cash exceeding €100,000. For everyday transactions, no declaration is needed. The Treasury emphasizes that this rule does not restrict the free movement of cash — it simply establishes a transparency requirement through a specific form. These rules apply regardless of whether the situation is an emergency or not.

Declaring Cash

Declaring cash is free and not subject to any fees. The S1 declaration form is available online through the Spanish Tax Agency (www.aeat.es), the Public Treasury (www.tesoro.es), and the Executive Service of the Commission for the Prevention of Money Laundering (www.sepblac.es).

Keeping Cash at Home: Pros and Cons

Although straightforward, storing cash at home has both advantages and risks — and not only in cases where it could be lost in a flood or fire. On the plus side, cash offers independence from the banking system and ensures immediate access to funds during blackouts, digital outages, or network failures. It also provides a level of privacy that electronic transactions cannot match.

If you’re building an emergency cash reserve, it’s better to save gradually rather than making a large, impulsive withdrawal. If you keep substantial amounts, you should record it as part of your income and indicate its source (salary, investment returns, capital gains, etc.). Tax transparency is key, so keeping receipts and withdrawal records is just as important as safeguarding the cash itself.

If you suddenly come into possession of a large amount of cash — for example, after salvaging it from a flood or fire — the Treasury could treat it as an unexplained capital gain and demand taxes, interest, and possibly penalties. If the funds were already declared, you should notify both the authorities and your home insurance provider.

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