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The Costa Blanca is a popular destination and place of residence for many residents. With strict regulations on cash payments in Spain and the EU, both locals and visitors should be well informed to avoid legal problems.
Current cash limits in Spain (2024)
Since the introduction of the Anti-Fraud Law in 2021, the following limits apply to cash transactions in Spain:
• £1,000: This limit applies to payments where at least one party is a business or self-employed person.
• 2,500 euros: This amount applies to transactions between private individuals.
• €10,000: Tourists and non-residents in Spain may pay up to this amount in cash.
Reporting obligations and penalties
Transactions above the specified limits must be reported in order to prevent money laundering and tax evasion. Violations can result in heavy fines of up to 25% of the amount paid. If one of the parties reports the violation, the penalty for that party is waived, and if the penalty is paid immediately, a reduction of 50% is offered.
Regional regulations in the Valencian Community and Alicante
The same national limits apply in the Valencian Community and Alicante as in the rest of Spain. However, regional characteristics are also taken into account in the implementation and monitoring of the regulations.
EU-wide regulations from 2024 onwards
The European Union has decided on an upper limit of €10,000 for cash payments in all member states. However, member states may set lower limits if they wish. This measure is intended to strengthen the fight against money laundering and terrorist financing within the EU.
Regulations in Russia and the USA
• Russia: Russia also has strict regulations on cash payments to prevent money laundering. The upper limit for cash transactions here is 600,000 roubles (approximately 7,000 euros).
• USA: In the United States, there is no nationwide limit on cash payments, but banks and other financial institutions must report transactions exceeding US$10,000.
Special information for British citizens
Since Brexit, British citizens are considered non-EU citizens. Tourists from the United Kingdom are therefore subject to the Spanish limit of €10,000 for cash payments. Alternative payment methods should be used for higher amounts.
Practical tips for everyday life on the Costa Blanca
• Plan larger expenditures: Utilise bank transfers or card payments for larger amounts in order to comply with legal requirements. This applies in particular to construction work or major purchases.
• Obtain regular information: As legal requirements may change, it is important to stay up to date.
• Travellers and cash: Tourists should note that although they can pay up to €10,000 in cash, credit cards or similar payment methods are safer and often more convenient.
The regulations governing cash payments on the Costa Blanca and throughout Spain are strict in order to combat money laundering and tax evasion. Residents and holidaymakers should be aware of the current legal limits and familiarise themselves with the new rules in order to avoid potential penalties. This will allow them to enjoy carefree days on the Costa Blanca without any legal complications.
