New Regulations on Cash in Spain: Limits, Controls, and Penalties

• July 4, 2025
• Alejandro Postigo
• no comments

The use of cash in Spain is coming under increasing scrutiny by the authorities. With the aim of preventing tax fraud, money laundering, and undisclosed financial activity, the Government is finalising new measures that may directly affect freelancers, businesses, and individuals.

Below, we explain the new legal limits, the actions that could lead to penalties of up to €150,000, and how to stay compliant with this regulation with the support of MJ Consulting.

Which Cash Operations Could Be Penalised?

Based on the latest proposals, these cash-related activities may incur penalties if not properly declared or justified:

• Cash deposits over €1,000 into bank accounts.
• Withdrawals or deposits over €3,000, or any transaction involving €500 notes
• Carrying more than €100,000 in cash within Spanish territory without prior declaration to the authorities.
• Making or receiving loans over €6,000 without proper documentation or formal notification.

These activities will be subject to monitoring by the Tax Agency (Hacienda) and the Bank of Spain, and any irregularities, lack of justification, or intent to conceal funds may result in severe financial penalties, reaching up to €150,000 in the most serious cases.

Why Are These Measures Being Implemented?

The main goals of this regulation are:

• To combat tax evasion and undeclared capital movements.
• To promote electronic payment methods, which are more transparent and easily traceable.
• To prevent money laundering in both domestic and international operations.
• To ensure proper registration of loans, credits, and other financial transactions.

Who Will Be Affected by This New Regulation?

While these measures apply to all citizens, they are especially relevant to:

• Freelancers who still handle significant cash income or operate with unregistered cash flows.
• Companies making cash deposits or withdrawals without sufficient documentation.
• Private individuals giving or receiving personal loans without contracts or declarations.
• Anyone transporting or holding cash amounts that exceed the legal limits.

How Can MJ Consulting Help You?

At MJ Consulting, we offer preventive and personalised advice to ensure your financial activities are always within the law. Our services include:

• Reviewing and justifying your cash bank transactions.
• Advising on the formalisation of private loans and credits.
• Supporting documentation of income for freelancers and SMEs.
• Tax planning to minimise risks and avoid penalties.

Conclusion

Cash control in Spain is now a reality. Any undeclared or unjustified cash operations that exceed established thresholds may carry serious legal and financial consequences. Anticipation is the best way to protect your business or personal assets.

If you have any doubts or need support, at MJ Consulting we will guide you step-by-step.

Get in touch with us today to find out how we can help.

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