Cash limits in Spain: paying and bringing cash

Key rules

• Business payments: Paying a business or professional in cash above 1,000 euros is a breach, and both sides can be fined.
• Non-resident payers: A non-resident individual paying someone who is not a business or professional can pay up to 10,000 euros in cash.
• Border declaration: Declare cash of 10,000 euros or more on the S1 form when you enter or leave Spain.
• Bank deposits: Banks can ask for proof of origin on large deposits and can refuse them or close your account.

How much cash can you pay with?

Cash payments are limited to 1,000 euros when a business or professional is involved, for example a landlord who is a company, a shop, a builder or a removal firm. If you are a non-resident individual paying someone who is not acting as a business or professional, the limit is 10,000 euros.

The limit applies to the whole transaction. Splitting a bill into smaller cash payments does not get around it. The tax authority (AEAT) fines breaches, and both the payer and the person paid can be liable.

The limit does not apply to payments between private individuals who are residents. It also does not apply to payments to or from banks, so paying cash into your own account is not a breach. Above the limit, pay a business or professional by card or bank transfer.

Bringing cash into or out of Spain

You must declare cash of 10,000 euros or more when entering or leaving Spain. This covers travel from or to other EU countries too. Count all cash and similar bearer instruments together.

You declare on the S1 form, at the border or before you travel. It asks for the carrier, the owner, where the money came from and what it is for. Within the EU, a declaration is also needed for movements of 100,000 euros or more.

If you do not declare, the funds can be seized and you can be fined. You may then have to prove where the money came from.

Banks and large cash deposits

Banks must identify anyone who deposits cash and keep records. They report cash operations of 10,000 euros or more to the financial intelligence unit (Sepblac) as a routine matter. They also report unusual transactions of any size.

For a large deposit, expect to be asked for proof of where the money came from. If the bank is not satisfied, it can refuse the deposit or close your account. Each bank sets its own thresholds and document requests, so ask before you go. If the cash came from abroad, keep your customs declaration, because the bank may ask for it.

The documents and checklist below list what to gather.

Documents you need

• Recent payslips from your employer, if the cash comes from your salary.

• A sale contract, if the cash comes from selling something such as a car or a business.

• A property deed from the notary, if the cash comes from selling a property.

• Inheritance documents, if the cash comes from an inheritance.

• Withdrawal receipts from your bank, if you are paying back cash you took out earlier.

• Your tax returns, to show the money was declared as income.

• The customs declaration, if the cash was brought into Spain from abroad.

Checklist

• Add up all the cash and similar bearer instruments you carry, and declare them if the total is 10,000 euros or more when you enter or leave Spain.

• Fill in the S1 form at the border or before you travel, with the carrier, owner, origin and intended use of the money.

• Keep your copy of the customs declaration, because your bank may ask for it as proof when you deposit imported cash.

• Ask your bank beforehand what proof of origin it wants for a large cash deposit.

• Gather proof of where the cash came from, such as payslips, a sale contract or a withdrawal receipt, before you go to the bank.

What to watch out for

• Paying too much in cash: Cash payments are limited to 1,000 euros when a business or professional is involved, or 10,000 euros if you are a non-resident individual paying someone who is not acting as a business or professional. The limit covers the whole transaction, so splitting the payment does not get around it. The AEAT, Spain's tax agency, fines breaches, and both the payer and the receiver are liable. Pay by card or bank transfer whenever the total is above the limit, and never split one purchase into smaller cash payments.

• Large cash deposits at your bank: Banks must identify you and keep records of cash deposits. They can refuse a deposit or close your account if you cannot explain where the money came from. Keep proof of origin ready before you deposit, and ask your bank early what it wants to see.

Frequently asked questions

Does the cash limit apply when I pay a private individual?

No, the cash limit does not apply to payments between private individuals who are residents. It applies as soon as a business or professional is involved in the deal.

Does the cash limit apply when I pay money into my own bank?

No, the cash limit does not apply to payments to or from banks and similar credit institutions. The bank can still ask where a large deposit comes from.

What happens if I carry cash over the border without declaring it?

Customs can seize the money and fine you if you fail to declare cash at the border. You may also have to justify where the seized money came from.

Will my bank report a large cash deposit?

Yes, banks report every cash operation of 10,000 euros or more to Sepblac, Spain's financial intelligence unit, as a routine report. They also report unusual transactions of any size, so keep proof of origin even for smaller deposits.