Lorraine Williamson
From 2025, Spain’s tax agency is sharpening its focus on untraceable cash transactions. Withdraw or deposit more than €3,000 without proving where it came from, and you could face severe penalties. The measure is part of a wider push to expose undeclared money flows and crack down on tax evasion.
Spanish banks are now required to alert the tax office whenever a client deposits or withdraws over €3,000, or uses €500 notes. But it’s not just the big amounts that raise red flags—regular smaller withdrawals, if they follow a pattern, can also trigger suspicion. If you can’t account for the funds, fines may reach 150% of the total, capped at €150,000.
Documentation essential to avoid trouble
Anyone using significant cash amounts must be ready to prove its origin. Payslips, sales records, or even gift letters are accepted. Receipts for large purchases may also be helpful. Without this paper trail, you could fall foul of Spain’s increasingly unforgiving fiscal rules.
Cash limits and prior restrictions still apply
Spain already limits cash payments in shops and services to €1,000. Carrying more than €10,000 in cash while in Spain must be declared using the S1 form. Additionally, loans and financial transfers over €6,000 are now under closer scrutiny.
A crackdown on tax fraud and financial secrecy
These measures are designed to improve transparency and bring informal money into the light. By tracking suspicious activity, authorities hope to limit the scope for money laundering and undeclared income—part of a broader EU-wide trend to monitor financial flows more tightly.
Keep clear records to avoid costly penalties
With fines reaching six figures, the message is clear: don’t take risks with unaccounted-for cash. Keep receipts, get proper documentation, and seek financial advice if you’re unsure. In today’s Spain, paper trails matter more than ever.
Sources: la Opinión de Málaga, Antena3