What money transfers require you to declare the Treasury

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we will explain what money transfers do you have to declare to the Treasury, as well as those limits from which your bank will inform the Tax Agency of the operation you have carried out. These are limits that have been established by law, in an attempt to try to prevent and fight fraud and money laundering.

We are going to start the article by telling you what are the limits from which your bank is going to report this transaction, and then we will tell you what can happen after it is reported. And then, we will explain the limits from which you are the one who has to declare the money.

Limits for your banks to report the transaction

Spain has a Law 7/2012 with which it tries to prevent and fight against fraud. This law has established a series of limits on banking operations. These limits do not mean that you cannot make operations beyond them, but when they are exceeded, the transactions must be notified to prevent money laundering crimes.

These are the limits from which transactions are notified:

  • Bank operations, such as transfers, that exceed €10,000.
  • Transactions in which €500 bills are exchanged. No matter how much they are, if there are 500 bills, they must be notified.
  • Payments and collections made in cash that are more than €3,000
  • Loans and credits of more than €6,000.

Here you should know that you will not need to initiate any administrative procedure if you exceed these limits, nor are they going to fine you for doing it or think that you are defrauding the Treasury. Simply, your bank will inform the Tax Agency when you carry out these operations, because the law requires you to do so.

What happens if you exceed these limits

As we have told you, exceeding these limits does not mean that you are going to get into trouble, that you are going to be fined or that you have to start a procedure to declare that money yourself. Simply, the bank will inform the Tax Agency about this operationespecially when they have to do with procedures you have done through the bank.

Here, the only thing that can happen is that perhaps the Tax Agency will send you a request to justify where the money comes from, especially in the cases of cash income or transfers that you may have received from abroad. In addition to this, also information may be shared with tax agencies in other countriessince within the European Union there are some that have collaboration agreements with Spain to fight against fraud.

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When do you have to declare the operation?

It is true that the law requires banks to inform the Treasury when you exceed the above limits, and this is something they do differently. But there are other different limits so that you have to declare the operations, and they are quite high limits. These are the limits from which you have to declare the movements.

  • When you send or receive from outside Spain a payment of 10,000 euros or more, or the equivalent in the foreign currency in which you receive it.
  • When you leave or enter the country with 10,000 euros or more, or the equivalent in the foreign currency in which you receive it.
  • Bank movements within Spain with a value of 100,000 euros or more, or the equivalent in foreign currency.
  • Movements of means of payment in cash with a value of 100,000 euros or more, or the equivalent in foreign currency.

If you exceed these limits, you will be required to file a tax return of the Model S1 of the Tax Agency. In this free declaration, you will have to give the data of the bearer, the owner and the recipient of the money, as well as the exact amount, the nature of the transaction, its origin, the itinerary of the money, its previous use or the mode of transport of the money. payment method.

You will have to make this statement before making the money movement. This means, for example, that if you enter or leave Spain with cash worth more than 10,000 euros, then you must have requested this document and filled it out.

we will explain what money transfers do you have to declare to the Treasury, as well as those limits from…

we will explain what money transfers do you have to declare to the Treasury, as well as those limits from…

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