Sending money from Spain to family or accounts back home

Key rules

• Authorised provider: Only use a bank or a payment firm listed in the Banco de España register, or an EU firm in its home regulator's register.
• Total cost: Compare fee plus exchange-rate margin, not the fee alone.
• Your own account: Send from an account in your name so each transfer shows on your statements.
• Cash: Avoid cash and informal channels, and declare cash over 10,000 euros crossing the border.

The short answer

For regular transfers, a regulated online specialist or money-transfer operator is usually cheaper than your bank. Whichever you choose, make sure the provider is authorised and that every transfer leaves a record you can show later.

Check the provider is authorised

Payment and money-transfer firms in Spain must be authorised by the Banco de España. Firms from other EU countries can operate here under their home regulator's licence. The Banco de España keeps a public register of payment institutions, electronic money institutions and their agents on its website.

• Search the provider's name in that register.
• Check the type of authorisation, and any agents the firm uses.
• If the firm is from another EU country, check its home regulator's register too.

Authorisation can change, so check each time you pick a provider, not once for all time. Banks are regulated too. Well-known regulated names include Wise, Revolut, Western Union, MoneyGram, Ria, WorldRemit, Remitly, Currencies Direct and Moneycorp.

Compare the total cost

Look at the fee and the exchange-rate margin together. A low fee can hide a poor rate.

• Banks usually charge a transfer fee plus a wider margin. They are typically the most expensive.
• Money-transfer operators charge a fee that depends on the amount and how the money is paid out, plus a margin.
• Online specialists usually show a lower, clearer fee and a small margin.

On busy routes, such as Latin America, Morocco or Romania, online specialists tend to be cheapest. Costs change with the route, the amount and the payout method, so run your own numbers in at least two providers' calculators before you commit. The World Bank's price comparison database is another place to compare.

Build a paper trail

A clear record protects you if a bank or the tax agency asks questions.

• Send from an account in your own name, so the transfer shows on your statements.
• Use the same reference each time, such as "family support, month".
• Save the confirmation receipt for every transfer.
• Keep a simple log of dates, amounts and purpose. Ask the person receiving the money to keep their bank statements too.
• For a gift or a loan, write a short signed note saying which it is.
• Keep proof of where the money came from, especially for large or unusual amounts.
• Avoid cash and informal channels. They leave no record.

What gets reported

Spanish banks report international transfers to the Banco de España and the tax agency (AEAT). They may ask you the purpose of a transfer. They also run anti-money-laundering checks, mostly on large or unusual amounts, so have your proof ready.

If you carry cash across the border, more than 10,000 euros must be declared on form S1.

Sending money does not trigger Modelo 720. That form is about assets you hold abroad, not transfers. Gifts to family are not taxed as outgoing transfers. Any gift tax falls on the person receiving the money and depends on where they live. The FAQ below covers both points.

If you are unsure how your own case is taxed, ask a tax adviser. Use the decision block, documents list and checklist below to choose a provider and prepare.

Choosing between options

Which type of provider should you use for regular transfers home?

• Online specialist: You send regularly on a major route, such as to Latin America, Morocco or Romania, and want a low, clear fee and a small exchange-rate margin.

• Money-transfer operator: The recipient needs a particular payout method, such as cash pickup. The fee varies with the amount and payout method, plus a margin.

• Your bank: You want to keep everything in one account and accept a transfer fee plus a wider exchange-rate margin, which usually makes it the most expensive.

Compare the total cost in each calculator, then pick the cheapest provider that is authorised by the Banco de España (or another EU regulator) and leaves a receipt and a statement entry.

Costs vary by corridor, amount and payout method, so check current figures with each provider's calculator.

Documents you need

• Proof that your provider is authorised: its entry in the Banco de España register of payment institutions, or the register of its home regulator if it is based in another EU country.

• The confirmation receipt for each transfer, from your bank or provider.

• Bank statements showing the transfers, kept by you and by the person who receives the money. The transfer must be sent from an account in your own name.

• A short signed note stating the purpose when the money is a gift or a loan, in case the bank or the tax agency asks.

• Proof of where the money came from, for large or unusual amounts.

Checklist

• Search the provider's name in the Banco de España register of payment institutions and check its type of authorisation and any agents.

• Compare the total cost (fee plus exchange-rate margin) in at least two providers' calculators, including an online specialist and your bank.

• Write the same reference in every transfer note, such as "family support, month".

• Keep proof of the source of the funds and, for gifts or loans, a short signed note.

• Avoid cash and informal channels that leave no record.

Frequently asked questions

Does sending money to family abroad trigger Modelo 720?

No, sending money to family abroad does not trigger Modelo 720. That form is only for tax residents who hold foreign assets, such as accounts, securities or property, worth more than 50,000 euros per category.

Do I pay tax when I send a gift to family abroad?

No, a gift to family abroad is not taxed as an outgoing transfer. Gift tax falls on the person who receives it, depending on where they live and the region. Keep a short signed note saying it is a gift.

Will my bank report my transfers to family abroad?

Yes, Spanish banks report international transfers to the Banco de España and the tax agency (AEAT), and they may ask you the purpose. Large or unusual amounts get extra anti-money-laundering checks, so keep proof of where the money came from.

Which type of provider is usually the most expensive for sending money?

Banks are usually the most expensive way to send money abroad, because they charge a transfer fee and a wider exchange-rate margin. Online specialists usually show a lower, clearer fee, so compare the total cost in each calculator.