If you are planning to pay for something in cash in Spain, whether it is a service, a purchase, or a deal with another business, it is worth knowing that Spanish law puts a hard limit on how much cash you can legally use.
Since Law 11/2021 came into force on 11 July 2021, the general limit is €1,000, down from the €2,500 originally set by Law 7/2012. Any transaction of €1,000 or more, where at least one of the parties is a business or professional, cannot legally be paid in cash, and splitting a larger payment into smaller cash instalments to get around the limit is not allowed either.
Who this limit applies to
- Payments between two companies or professionals
- Payments between a company or professional and a private individual
A higher limit for non-residents
If you are a private individual who is not a tax resident in Spain, and you are not acting as a business or professional, the limit is higher: up to €10,000, or the equivalent in another currency.
Paying above the applicable limit in cash can trigger a fine of up to 25% of the amount involved, which can fall on either party to the transaction, so it is worth checking which limit applies before agreeing on how a payment will be made.
