Can you really be fined €150k for a cash withdrawal in Spain?

Spanish newspapers are reporting that residents could be fined up to €150,000 following cash withdrawals without prior notification.

Crimes of suspected tax evasion or money laundering can indeed be fined up to €150,000. However, the rules are nothing new – and tend to focus more on deposits rather than withdrawals.

Under regulations from Spain’s tax agency (Agencia Tributaria) the following rules have been in place for some years now:

• If you wish to withdraw or deposit more than €1,000 in cash, you must first identify yourself at the bank operating the cashpoint.
• Any deposits or withdrawals greater than €3,000 results in the bank notifying Spain’s tax office of the operation – for digital operations, any transfer over €6,000 automatically is notified with the Agencia Tributaria.
• Any deposit with €500 notes results in the tax agency being notified.
• Any loan or credit over €6,000 is notified to the tax agency.

The Banco de España recommends that, if you wish to withdraw more than €3,000 in cash, you should notify your bank of your intention a day or two prior to the operation. This is not only to avoid raising any suspicion – but because the cashpoint or bank may not have the amount of money on site.

Once completed any withdrawal or deposit over €3,000, you should keep a record of receipts, in case Hacienda or the Agencia Tributaria ever investigate your financial movements.

Furthermore, any significant amounts you receive in cash should be justified – whether from inheritance, the sale of a car or similar, a loan or a gift – otherwise in the case of an inspection, Hacienda could consider the cash a “ganancia no justificada” or “unjustified capital gain” for which you could receive a fine for tax evasion.

Failure to comply with tax fraud and money laundering rules can lead to three kinds of sanctions:

• Sanción leve: Up to 50% of the value of the cash that was not justified or declared, for infractions of up a value up to €3,000.
• Sanción grave: Between 50-100% of the value of the cash, for infractions over €3,000 in value.
• Sanción muy grave: Up to 150% of the cash value, up to a maximum of €150,000.

So is it really true what newspapers are saying: that you can be fined €150,000 for cash withdrawals in Spain?

The truth is, unless you’re trying to avoid paying tax, it’s unlikely.

The maximum €150,000 fine is for a hypothetical situation where a person has not declared, hidden or laundered €100,000.

If you have deposited more than €3,000 and can justify the proceeds of the cash, then you should have nothing to worry about.