New limits for cash payments to prevent and combat tax fraud.
On Saturday 10 July 2021, Law 11/2021 on measures to prevent and combat tax fraud was published in the Official State Gazette (BOE) and came into force the following day, so it is now fully operational.
The law introduces some important modifications that should be taken into account, but there is one particularly important one to bear in mind:
Change in the limit for cash payments
1. Transactions, in which any of the intervening parties acts as a businessman or professional, with an amount equal to or greater than 1,000 euros or its equivalent in foreign currency, may not be paid in cash.
However, the aforementioned amount shall be 10,000 euros or its equivalent in foreign currency when the payer is a natural person who can prove that he is not resident for tax purposes in Spain and is not acting in his capacity as a trader or professional.
From now on, the limit of 2,500 euros paid in cash for transactions in which a businessman or professional acts is reduced to 1,000 euros and the limit of 15,000 euros when the payer is a non-resident is reduced to 10,000 euros.
The penalty for non-compliance with this limit remains at 25% of the value paid in cash.
Please bear this in mind, as the reduction is significant.
If you have any questions, the tax department of Fuster & Associates will be happy to answer you about the limit for cash payments for non-residents.
- View more post about: Fuster & Associates
