21/01/2026
Spain’s Tax Agency (Agencia Tributaria) has intensified its monitoring of cash movements by individuals and businesses, reinforcing existing restrictions and sanctions aimed at combating tax fraud, the shadow economy, and money laundering risks.
While the measures are primarily tax-driven, they are closely aligned with broader AML objectives to reduce the use of untraceable cash and improve financial transparency.
Current rules already impose strict limitations on the use and movement of cash, but enforcement and data-driven controls are increasing:
Cash payments of €1,000 or more between professionals or businesses are prohibited and must be made through traceable electronic means. Breaches can result in fines of 25% of the transaction value, potentially affecting both parties.
Banks automatically report cash deposits and withdrawals of €3,000 or more to the Tax Agency, as well as transactions involving high-risk banknotes (such as €500 notes).
Transport of large amounts of cash is subject to declaration requirements: €100,000 for domestic movements within Spain and €10,000 for cross-border transport. Failure to comply can lead to seizure of funds and substantial penalties.
Importantly, while some public commentary has suggested that individuals must notify the authorities in advance before withdrawing large sums, the legal obligation rests on financial institutions to report suspicious or high-value cash movements. The risk for individuals and businesses arises when they cannot adequately justify the origin or purpose of the funds.