Are transfers declared to the Treasury if they exceed a limit?

Digital payment methods are winning the battle over cash payments. They are more convenient for the user and also easier to track for the Ministry of Finance and Public Service, which always seeks to be able to trace what users do with money. But do bank transfers have to be declared? And money transfers with Bizum?

The organization tries to prevent illegalities from occurring in money movements when making a transfer from one bank to another or from one country to another. For this reason, there are limits on cash payments and bank transactions for which the bank will inform the Treasury.

Can the Treasury fine you for bank transfers? Is there any limit to sending money through Bizum? And to get it out of the ATM? These are the figures that you must be clear about in each operation and what happens if you skip them or if you do not inform the Treasury of certain movements.

What is the money limit to pay in cash?

Law 11/2021, of July 9, on the prevention of measures and the fight against tax fraud, establishes a limit of 1,000 euros for cash payments in operations between companies and the self-employed.

This figure rises to 10,000 euros for individuals with tax domicile outside of Spain.

What is the maximum amount allowed by the Treasury in transfers?

The Treasury does not establish any limits on transfers. You can send the amount you want by bank transfer. However, the financial institution will notify the Tax Agency of banking operations that exceed 10,000 euros.

They will also do so for cash payments and collections exceeding 3,000 euros, such as, for example, depositing money over the counter or through the ATM. Hence, it is often thought that if the donations do not exceed 3,000 euros, the donations do not have to be declared, when this is not the case.

This does not mean that you have to pay any fine, it simply means that the Treasury will receive this information and could ask you for explanations if it considers that it is a suspicious movement.

Do these bank transfers have to be declared? No, as explained by the Treasury, bank transfers are not subject to declaration, even if their amount exceeds 10,000 euros.

What transmissions must be declared to the Treasury?

It is not necessary to declare bank transfers because there is already a record of the operation and, in addition, the bank will inform the Treasury.

However, there are other types of money movements that must be reported to the Treasury. This involves sending and receiving money outside of Spain or when selling certain amounts of money in the country. Specific:

Send or Receive from outside Spain a payment greater than 10,000 Euros or its foreign currency. Enter or leave the country or its equivalent in foreign currency. Bank movements within Spain greater than 100,000 euros or its equivalent in foreign currency. Movements of means of payment in cash worth 100,000 euros or more or its equivalent in foreign currency.

In these four cases, you will have to present Form S1 from the Tax Agency to report the operation and provide details of who was involved in the operation.

Can you be fined for not reporting a bank transfer?

As we have seen, there is no obligation to declare bank transfers, so the Treasury will not be able to fine you if you do not report them.

Another different issue is if you do not fill out Form S1. In that case there is a penalty that can reach up to 2,500 euros, in addition to a fine of 150 euros. Specifically, the treasury may sanction you with between 2% and 25% of the undeclared import.

What money sending limits exist in Bizum?

Bizum’s own system has its limits. As an issuer, you will not be able to send more than 1,000 euros per transaction or more than 2,000 euros per month. In addition, there is also a maximum of 5,000 euros that you can transfer with Bizum.

Something similar happens with the receipt of money. You can receive up to 2,000 euros per day. In any case, you will not be able to exceed 60 monthly operations.

Operations with Bizum are not declared in general, but there is a limit after which they must be included in the income. From 10,000 euros per year, that money will have to be included in the income tax return.

Additionally, if you use bizum to collect rent or any sales, you will have to declare it.