Spanish legal restrictions on payments in cash within Spain
Legal restrictions on payments in cash in Spain came into force on the 19th November 2012, so if you plan to make any payment in Spain over 2.500 €, check first if this new restriction is applicable to you.
Payments in cash of 2.500 € or more are forbidden – if one of the parties acts as a professional or entrepreneur.
This limit is higher (15.000 €) if the payer is an individual who does not have his fiscal residency in Spain and does not act as entrepreneur or professional.
If you plan to sign a contract to purchase a Spanish property, you can pay the deposit in cash – if both of you are individuals!
Be aware that this restriction is applicable irrespective of the currency so, if you pay in Pounds, Dollars, Yen or whatever, it will apply….
Cash is also defined as payment using a banker´s draft payable to the bearer – “al portador”.
Finally, proof of cash payments in Spain have to be kept for 5 years after the date of payment.
If you require further information, please feel free to contact me!