Spain's New Tax Law: €150,000 Fines for Unreported Cash Withdrawals

Spain Cracks Down on Large Cash Withdrawals: Fines Up to €150,000. Spain's tax agency, Hacienda, has implemented a new law imposing hefty fines for cash withdrawals exceeding €3,000 without prior notification. This measure, part of Law 11/2021, aims to combat tax evasion. "They're cracking down on cash transactions," explains financial advisor, Alex Posadas. "If you don't notify them 24 hours in advance, you risk a significant fine." The law, effective since July 11, 2021, requires individuals to justify the origin of large sums of money. This has led some to explore alternative banking options in countries with less stringent regulations. The new law reflects a global trend of increased scrutiny on financial transactions to combat illicit activities. While the regulation aims to deter tax evasion, it also raises concerns about privacy. The government maintains that the measure is necessary to ensure fair tax collection and combat organized crime.