Spain Tax Agency increases oversight of cash transactions

The Spanish Tax Agency (Agencia Tributaria) is intensifying its oversight of cash transactions to prevent tax evasion and money laundering. Financial institutions are required to report suspicious movements to the authorities, regardless of the amount involved.

Specific triggers for investigation include the use of 500 euro banknotes; even a single note can activate an alert due to its rarity and association with capital laundering risks. Additionally, banks are monitoring cash deposits exceeding 3,000 euros and patterns of frequent, smaller deposits that fall below that threshold but appear irregular.

Other areas under scrutiny include loans and credits exceeding 6,000 euros, which require documentation regarding the destination of the funds. These measures particularly impact sectors such as retail, hospitality, and home services where cash remains a common method of payment.