Else Beekman
When the lights went out across large parts of Spain this past Monday, so did card machines, mobile apps, and just about everything else we rely on to pay for our daily needs. For us at InSpain.news, it was a real eye-opener: no cash meant no coffee, no groceries, and definitely no last-minute taxi. We realised just how dependent we’ve become on digital payments, and how vulnerable that makes us. Suddenly, having a few banknotes tucked in our wallet didn’t seem so old-fashioned after all.
Luckily, in Spain, local shops often still accept cash when the tech fails. That got us thinking here at InSpain.news: what exactly are the current rules around using cash in Spain? From payment limits to practical tips, here’s your essential guide.
Maximum cash payments
This part of the law often surprises newcomers. I’ve met expats who were shocked to learn that paying €1,200 in cash for home repairs could land them, and the handyman, in hot water. It’s a classic case of ‘I didn’t know’ not being a valid excuse in Spain.
To fight tax evasion and money laundering, Spain enforces strict limits on cash payments. If you’re dealing with a business or professional, the maximum allowed in cash is €1,000. For non-residents, the limit is €10,000. Breaking these rules can result in a fine of up to 25% of the cash involved, and both the payer and the receiver are held jointly responsible.
There’s a potential way out: if one party reports the illegal payment to the tax authority (Hacienda), they may avoid the fine, a kind of whistleblower protection. Reports can be submitted anonymously through Hacienda’s online form. Civil servants are also obliged to report any breach they come across in the course of their duties.
Private cash transactions between individuals that aren’t tied to any professional or business activity are not subject to these limits. That said, transactions involving large amounts, like buying property or vehicles, might still require reporting through a notary, bank, or the tax office.
If you’re carrying a large amount of cash, be prepared to explain where it came from. Authorities like the Guardia Civil or the tax agency might ask questions, especially if they come across large amounts during checks, home visits, or at the border. Trying to avoid the limit by splitting one payment into smaller amounts? That’s also considered a violation.
What counts as cash?
I once watched someone try to pay for a secondhand sofa with a wad of gift vouchers, only to be told that, technically, that counted as cash under Spanish law. Not something you’d expect, but a good example of how broad the definition is.
Under Spanish law, ‘cash’ includes not only notes and coins but also physical instruments like gift cards or anonymous prepaid cards, as long as they’re not traceable electronically. It’s a broad definition and one worth being aware of.
Keeping cash at home
In our household, we always keep a certain amount of notes at a hidden place, enough for a taxi, groceries and a meal if the power goes down. It’s not about paranoia, just peace of mind. Especially in a country where power outages aren’t unheard of.
There’s no law limiting how much cash you can keep at home. However, many financial experts recommend keeping €500 to €1,000 on hand in case of emergencies. Spain’s central bank, Banco de España, doesn’t suggest a specific amount but does stress the importance of cash as a backup if digital payment systems go down. It could be a power cut, a bank outage, or simply being stuck in a small town with no working card machine.
Can shops refuse cash?
A few weeks ago, I walked into a trendy café in Málaga that had a ‘card-only’ sign taped to the counter. But the law says otherwise, unless they tell you explicitly before you order, they’re supposed to accept cash. It’s a rule worth remembering when your card suddenly declines mid-coffee.
Generally, Spanish businesses are required to accept cash, unless they clearly state otherwise before the transaction. Think of a sign near the entrance or till. Without that prior notice, a shop can’t legally refuse a cash payment.
Tourists and cash
I’ve had friends fly in with wads of euros stuffed into socks, worried they’d be flagged at the airport. Truth is, if you’re under €10,000, you’re fine, but it’s worth knowing the rules, especially if you’re combining funds for a group rental or wedding.
Travelling to or from Spain? You can bring up to €10,000 in cash without needing to declare it. Go above that, and you’re legally required to report it to customs, both when entering and leaving Spain, and also in your home country. Fail to do so and you risk fines or having the money seized. The form can be submitted online or filled out at the border.
Additionally, for day-to-day spending, especially in rural areas, it’s wise to carry a bit of cash. Not every village shop or café is equipped for card payments and cash machines are even harder to find. So having a few notes in your pocket can save you a lot of hassle.
Paying rent in cash
A couple I know pays their landlord in crisp €50 notes every month. Nothing wrong with that, it’s legal, provided it stays under €1,000. But I told them: get a ‘recibo’. Even just a handwritten note. Spain may love paperwork, but sometimes it works in your favour.
So paying rent in cash in Spain is legal, as long as the payment stays below €1,000 and both tenant and landlord agree. Many landlords, particularly in the holiday rental market, still prefer cash. But keep this in mind: landlords are legally required to report rental income, even if it’s received in cash.
Tenants should always ask for a receipt (recibo), ideally showing the date, amount and both parties’ signatures. It’s your best defence if there’s ever a dispute or if you need proof for tax or immigration purposes.
ATM withdrawals
How much cash can you withdraw from a bank in Spain? That depends. In Spain, every bank does things slightly differently. My Triodos Bank, for example, caps daily withdrawals at €300. Therefore, I sometimes have to spread my withdrawals across two days just to cover some costs in cash. It pays to plan ahead. Other banks may allow more, depending on your account type or customer status. There’s no uniform legal limit, so it’s best to check with your own bank directly.
Bank limits for cash withdrawal in Spain
Use of cash vs digital payments
In Spain, cash is still very much part of everyday life, but its dominance is steadily declining. According to data from Banco de España and the ECB, around 35% to 40% of in-person payments in Spain are still made with cash, especially for small daily purchases like bread, coffee, or groceries.
That said, contactless cards and mobile payments are gaining ground fast, particularly in urban areas and among younger generations. The rise of digital banks like Revolut and N26 is pushing this trend even further, making mobile wallets and instant transfers more accessible than ever, even for tourists and newcomers.
Fewer cash transactions in Spain because of Bizum
One of the biggest game-changers in Spain has been Bizum, a mobile payment system linked directly to Spanish bank accounts. It’s fast, free, and wildly popular. From splitting dinner bills to paying local service providers, people use it daily. In fact, over 20 million users in Spain have already embraced it, which says a lot in a country that still loves its cash. “Hazme un Bizum” – just send me a Bizum – has become something of a catchphrase in Spain over the past few years. You’ll hear it in cafés, at markets, even among grandparents. That’s how deeply embedded the app has become in everyday life.
The future of cash in Spain
There’s a lot of talk about going cashless, but in practice, I still see people paying with coins at the bakery every morning. Spain is modern, yes – but also stubbornly practical. And as Monday’s blackout reminded us, sometimes old-school just works.
While digital payments continue to grow, cash remains a cornerstone of daily life in Spain. There are no official plans to phase it out. That said, the government is encouraging more electronic transactions to promote transparency and reduce tax evasion.
No ATM or bank branch? This is how elderly people can get money in Spain