The Tax Agency has strengthened its oversight of cash transactions to prevent transactions linked to tax fraud or the use of undeclared funds. In this context, cash withdrawals or deposits exceeding €3,000, as well as those involving €500 bills, must be reported directly to the Treasury by financial institutions.
Cash Control
It should be noted that there is no automatic penalty for withdrawing more than €3,000 in cash. The obligation to report falls on banks, not the taxpayer. However, if the Tax Agency subsequently requests proof of the origin or destination of these funds and the citizen cannot provide valid documentation, they could face penalties.
Fines may vary depending on the severity of the violation: minor: up to 50% of the unjustified amount; serious: between 50% and 100%; and very serious: up to 150%, in cases related to money laundering or tax fraud.
Electronic Payments and Bizum
In the case of digital payment tools such as Bizum, there is no threshold of €3,000 as there is for cash. However, all electronic transactions are recorded, and banks are also required to report suspicious transactions to the Tax Agency. Thus, both Bizum transactions and bank transfers or deposits may be subject to review if the Tax Agency detects inconsistencies with the declared tax situation.
Movements of Large Amounts
The regulations are even stricter for larger transactions. Cash transactions exceeding €100,000 within Spain require the filing of Form S-1 with the Tax Agency. Likewise, when a citizen enters or leaves the country with €10,000 or more in cash, they must also declare it using the same form online.
In short, although withdrawing cash in excess of €3,000 is not illegal and carries no direct penalty, the Treasury may require documentary proof. The key is not the amount withdrawn, but the ability to prove the origin and destination of the money, both in cash transactions and electronic transactions.