Cash clampdown in Spain

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Think you can get around cash payment limits by splitting transactions? Think again! Spain’s tax office, Hacienda, is tightening its grip on cash payments, and anyone caught bending the rules could face a hefty fine.

While paying in cash remains legal, the government is bearing down on transactions which, they say, could fuel tax fraud and money laundering. Under Law 7/2012 of 29th October, businesses and professionals cannot accept cash payments of €1,000 or more in a single transaction.

For tourists and expats without a Spanish tax residency, the limit is slightly more generous at €10,000 but break it and the penalties still apply. And if you’re thinking of sneaking by with a cheque or other direct payment method, think again. The restrictions don’t just cover notes and coins – they also apply to bearer cheques and other non-traceable payment methods. By Marc Menendez-Roche/euroweeklynews.com