New cash payment limits have been established as of July 9. This is the date on which Law 11/2021 on measures for the prevention and fight against tax fraud came into force. Which, among other things, establishes new quantitative limitations to cash payments.
We already anticipated this change and some others when we talked about the tax reform that would be included in the PGE 2021.
New cash payment limits
These new limits are established for transactions in which any of the intervening parties acts as a businessman or professional. Both for payment in euros and its countervalue in foreign currency.
In addition, it establishes a limit amount for the case when the payer is an individual who justifies that he does not have his tax domicile in Spain. And does not act in the capacity of entrepreneur or professional.
Below, we have established a comparative table of the restrictions that existed to date and those that are already operative since July 11.
Before |
Now |
|
Transactions in which a businessman or professional is involved. |
2.500€ |
1.000€ |
Payers Non-resident individual for tax purposes and not a businessman or professional. |
15.000€ |
10.000€ |
The new limitations will be applicable to all payments made as from the entry into force of the rule, even if they refer to transactions entered into prior to the establishment of the limitation.
Penalties
These new limits mean that the penalties are adapted to them. As was the case until now, the penalty will consist of a proportional pecuniary fine of 25% of the base of the penalty.
And this will now be the amount paid in cash in transactions of an amount equal to or greater than €1,000 or €10,000, or its equivalent value in foreign currency.
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