Prohibition for payments above € 2,500 in cash
As you may have heard, as of today, November 19th, is forbiden to make payments for 2,500 euros (or above) in cash operations involving a professional, whether company or autonomous. This measure excludes payments between particulars.
For non-residents, if the debtor is an individual who justifies to not have their tax residence in Spain and does not act as a professional, the amount is 15,000 euros, or the equivalent in foreign currency.
With this measure, the Tax Agency (AEAT) aims to limit fraud. Will it be the end of the classic question: With VAT or without VAT? It is a first step to limit fraud, or at least try to control it.
With the intention that the measure is effective, for those who do not comply, the AEAT will penalize with 25% of the transaction for both parties, equally and in solidarity, ie you can claim the penalty or claim equally all payer / bill collector. In any case the total penalty is always 25%.
This measure is undoubtedly undermine for those professionals acting within the law, forcing them to seek alternatives as bank transfers, with the resulting bank charges.