A law banning payments in cash of over 2,500 euros came into effect yesterday, November 19, 2012, as part of the central Government´s plan to tackle the black market here in Spain.
The law aims to put an end to the movement of large amounts of cash in the economy employed by businesses to avoid paying IVA.
The limitation affects operations of individuals and businesses and businesses with other businesses.
The maximum limit for cash payments goes up to 15,000 for non residents and tourists.
Although the Government admits the law will be difficult to enforce any person involved in cash transactions over the limit can report (denounce) the other party and gain impunity from prosecution. Anyone making cash payments over the limit will face fines of 25% of the value of the cash payment made and/or received.
