BRITISH second-home owners and other non-residents in Spain will legally be able to make cash payments of up to €10,000 under new European Union rules – ten times the limit faced by Spanish residents.
The change forms part of new EU anti-money laundering rules which will introduce a €10,000 maximum for cash payments across the bloc from 2027.
Spain already has some of the strictest cash-payment rules in Europe, limiting payments of more than €1,000 when one party is a business or professional.
However, the limit is €10,000 for individuals who are not tax residents in Spain.
That means British nationals who own holiday homes in Spain but remain resident in the UK for tax purposes can benefit from a significantly higher threshold than their Spanish neighbours.
The new EU rules, set to be rolled out next year, are designed to combat money laundering, tax evasion and other financial crimes by reducing the amount of spending that can be carried out anonymously in cash.
Payments above the €10,000 threshold will have to be made via traceable methods such as bank transfers, cards or cheques.
READ MORE: Where are the best places to buy second homes in Spain this summer?
The €10,000 figure is a maximum, meaning individual member states can impose lower limits – as Spain already does.
The rules will not impact everyday spending, meaning Brits and Spaniards remain free to use cash in shops, bars, restaurants and other businesses.
They also do not remove existing requirements surrounding cash, meaning anyone entering or leaving the EU carrying more than €10,000 must declare it to customs.
Spanish banks can also ask customers to prove the origin of large cash deposits, meaning the new rules should not be interpreted as a €10,000 allowance for depositing hefty amounts of unexplained cash.
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