New Max Cash Payments

The Spanish Government is bringing out a new law designed to combat fraud and tax evasion, as well as regulate crypto-currencies.

SPN Cash PaymentsBasically it lowers the ceiling for cash payments and is a drive to eliminate completely cash payments; a goal shared by other countries within the European Union.

The maximum cash payment permitted has been lowered from 2,500 euros to just 1,000 euros or its equivalent in a foreign currency.

The law also points out that if the person who is paying out is someone who is not a tax resident and does not make the payment in the name of a company, then the maximum amount payable goes up to 10,000 euros.

In other words, you can received up to 10,000 euros from a private individual as long as they are not a tax resident in Spain.

Furthermore, payments between private individuals, even though that they are tax residents, can still make a cash payment up to 2,500 euros.

This new law means that any purchase in a shop or a business has to be paid via a bankcard if it’s over 1,000 euros.

The Government said that it is going ahead with this new limit because “there haven’t been many complaints” concerning the previous reduction.

However, the European Commission opted not to establish limits on cash payments because, amongst other reasons, it won’t stop the funding of terrorism. The EC also considered it a violation of personal freedom for Europeans.

Nevertheless, on the 3rd of June the EU decided that travellers who enter or leave the EU with 10,000 euros in cash or more, will be obliged to declare it.

Spain isn’t alone in establishing a cash-payment ceiling as Italy put the maximum at 2,000 euros last year but this will be lowered from the 1st of January next year to a limit 1,000 euros.

France set a maximum of 1,000 euros for residents in 2015, however, non-residents can pay with cash up to 15,000 euros. Belgium established a maximum of 3,000 euros in 2014, which is twice as much as Greece. The only limit that German has is that if somebody wants to pay over 10,000 euros in cash, it must be registered.

(News: Spain)

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