spainrico

Rain of euro bills causes mad rush for money on Spanish highway

https://english.elpais.com/spain/202...tml?autoplay=1

Last paragraph - 'Carrying up to €100,000 ($110,000) in cash is allowed by law.'

I find this hard to believe given I thought paying in cash for anything over 2,500€ was illegal?

DLC

The new cash limit since July 2021 is €1,000. You're only allowed to deposit up to €10,000 at a time in banks and banks notify everything over €3,000, and if someone makes a habit of it they'll probably be asked to prove where it came from, so the tax man will catch up eventually.

Barriej

Paying for something may be, but having that amount in cash certainly isn't.
And Im pretty sure that someone isn't going to say no if you pay for that car in cash..
You can legally bring €10,000 in with you without reporting it. We carried cash from the Uk to here once, so the FIL could pay a fine (you know the under the desk ones 20 years ago)

The lady who sells the lottery tickets locally pays in to Correos more than €2500 at a go. I spoke to her last week and she had a large bundle of €50's.
She waved them and laughed and I was instantly transported back to Harry Enfield's 'Loads of money'

spainrico

So the limit is now down to a thousand, didn't know that!

Ronnyone

People move 100.000s of euros in and out of their accounts when buying and selling property yet after 25 years I have never known anyone investigated for this and I have done it at least 3 times. I have been subject to one investigation by the hacienda and that was based on the 4 year check and entailed the dreaded black envelop. At no point did they ask about any large amounts of money- they simply wished to know why I had not made a 2016 declaration. All I had to do was provide proof of my registration of residency which was January 2017 and that was that. Since then I have moved large amounts to my ex wife plus amounts from my uk account for kid's school fees. Not once have any of these been questioned. So unless someone has proof that they were investigated specifically for depositing over 3.000 euros or 10.000 euros I feel its a bit of a myth. All the bank needs to do is be able to trace movements and register amounts and give that information to the relevant authority when asked. If you have been given money or inherited money then it is your responsibility to notify the taxman ( irrespective of amount) and that is done by going to a Notary. This even applies to moving money to your partners account or children as unlike the uk gifts are all taxed in spain. True there are categories of people that get certain exemptions ( children, grandchildren) And even the groups that are exempt need to register the gift via the notary ( witin 6 months). This is also complicated by regional laws. So note if you are married and your partner dies you will pay tax on anything over 100.000 euros if you live in Valencia and that includes any uk assests .This is why married Spanish have various policies and methods in place to protect them from having to sell family homes to cover death duties.

UKMS

You have lost me ! ….. what does the €1000 cash limit apply to ?

DLC

Customers buying from businesses. Before it was €2500.

Barriej

Still can and could you just get the business to give invoices (receipts) for €999 however many times and Carlos is your uncle....

spainrico

You have lost me ! ….. what does the €1000 cash limit apply to ?

the maximum you can pay in cash for anything.....

UKMS

For tax residents yes that’s the limit. …. It’s still 10,000 for non residents (as far as I’m aware) although getting anyone to accept that might be difficult.

Pulaski

This seems like an interesting summary of the rules on the use of cash in Spain, and as I suspected there is no limit on cash deposited in a bank in Spain. ..... But there can be ugly consequences if a deposit exceeds €10,000.

This is not unique to Spain as there are very similar rules in all European countries, in the UK, US, Canada, Australia, NZ, etc., etc., etc., thanks to an organization that you probably haven't heard of called FATF.