Cash Payment Limits In Spain

Spain has some of the strictest cash payment restrictions in the European Union, and these rules are especially important to understand if you’re an expat making high-value purchases, paying rent, or running a small business. This updated guide explains how the current law works in 2025, who it affects, and what penalties you could face if you exceed the limit — even unintentionally.

Why Has Spain Limited Cash Payments?

The move to restrict cash transactions is part of Spain’s broader fight against tax fraud and money laundering. With the rise of digital payments and the increasing difficulty in tracking large cash transactions, the Spanish government introduced new regulations through Law 11/2021 (the Anti-Fraud Law) to increase financial transparency.

The law aims for the "permanent disappearance" of large cash payments in order to make it easier for tax authorities to trace money, identify irregularities, and reduce the underground economy. It's also aligned with similar reforms happening across the EU.

What Is the Current Cash Payment Limit in Spain?

As of 2025, the cash payment limit in Spain remains at €1,000 for transactions involving a professional or business. This applies whether you’re buying a product in a shop or paying a service provider like a plumber or builder.

Prior to this change, the limit had been €2,500 — so this is a significant reduction. The new threshold came into effect on July 11, 2021 and continues to apply in 2025 without change.

How Does It Work in Practice?

According to Spain’s official state bulletin (BOE), any transaction where one of the parties is acting as a professional or business must be settled electronically — via card, bank transfer, or another traceable method — if the amount is €1,000 or more.

So if you’re hiring a tradesperson to do home repairs, or buying something from a business that costs €1,000 or more, you must pay electronically. Cash is only allowed if the total comes in under the limit.

Are There Exceptions for Private Individuals?

Yes. If both parties in a transaction are private individuals (not acting as businesses or professionals), the cash limit remains at €2,500. For example, if you’re buying a second-hand bicycle from another resident and you're both acting privately, you can use cash up to this higher threshold.

What If the Payer Is Not a Spanish Tax Resident?

In cases where the person paying is a non-tax resident of Spain (such as a tourist or expat without tax residency) and is not acting as a business or professional, the limit increases to €10,000 or the equivalent in foreign currency. However, documentation must justify the payer’s non-resident status.

Can You Split Payments Between Cash and Card?

No — you cannot divide a single transaction into multiple payment methods to bypass the rule. If the total purchase or service costs €1,200, you can’t pay €1,000 in cash and €200 by card. The law is clear: the limit applies to the total amount of the transaction.

This also means you can't divide the payment into instalments or separate invoices to fall below the threshold. All invoices must be considered together as one transaction, and if the combined total exceeds €1,000, it must be paid electronically.

How Does This Affect Rent Payments?

Under the Ley de Vivienda (Spain's Housing Law), which took effect on May 18, 2023, rent payments must be made electronically — even if the monthly rent is under €1,000. This is part of a wider push to increase transparency and discourage undeclared rental income.

While there are narrow exceptions (e.g. in certain rural areas or if the tenant lacks a bank account), the general rule is that cash is no longer allowed for rental payments.

Who Does the Law Target?

Although the law applies to everyone, it is primarily aimed at:

• Self-employed workers (autónomos)
• Small businesses and service providers
• Anyone receiving undeclared income

The idea is to make under-the-table cash payments — which are harder to track and tax — much more difficult to carry out.

Are Cryptocurrency Payments Affected?

Yes. The Anti-Fraud Law also introduced stricter controls on digital currencies. While crypto isn't directly included in the €1,000 cash cap, transactions using digital currencies must be declared, and crypto assets must be reported to Spanish tax authorities (AEAT). This is especially important for expats who hold digital assets abroad but reside in Spain for tax purposes.

What Are the Penalties for Exceeding the Cash Limit?

If you're caught making a payment over the legal cash limit, both the buyer and seller can be fined. The standard penalty is 25% of the total amount paid.

However, if one party voluntarily reports the violation to the authorities before being caught, they may avoid the fine entirely — a tactic aimed at encouraging whistleblowing.

If you do receive a fine but agree to pay it promptly, a 50% reduction is available to avoid litigation or further administrative proceedings.

Cash Limits Across the EU in 2025

Spain is not alone in restricting cash. Here's how other EU countries compare:

• France: €1,000 for residents; €15,000 for non-residents
• Italy: €1,000 limit (as of 2023)
• Belgium: €3,000 cap (in place since 2014)
• Greece: €500 maximum
• Germany: No limit, but ID required for payments over €10,000
• UK (non-EU): No official cash payment limit

Additionally, the EU requires anyone entering or leaving the bloc with more than €10,000 in cash or valuables (including gold coins or bullion) to declare it at customs.

For a complete overview of EU country rules, visit: https://www.europe-consommateurs.eu/en/shopping-internet/cash-payment-limitations.html

Final Thoughts

Whether you’re paying rent, hiring a tradesperson, or purchasing goods, understanding Spain’s strict cash payment limits is crucial for avoiding legal trouble. As digital payments become the norm and oversight continues to increase, complying with these rules is part of living — and doing business — legally in Spain.

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Sources

• Ley 11/2021 (Anti-Fraud Law)
• Can I Pay My Rent In Spain With Cash?
• Cash Payment Rules in the EU