New anti-fraud tax measures and cash payment limits

Automatic summary, not yet reviewed

1. Cash payments of 2,500 euros or more are banned when a business or self-employed person takes part in the transaction. The limit rises to 15,000 euros for individuals without tax residence in Spain, and the fine is 25% of the amount paid.
2. A new duty requires reporting foreign accounts, securities, insurance policies and real estate to the Tax Agency. Failing to report carries fines of 5,000 euros per item of data, with a 10,000 euro minimum.
3. Article 108 of the Securities Market Law is reformed to tax share transfers that only serve to dodge the tax due on selling real estate through companies.
4. In VAT, the reverse charge is extended to real estate transfers in bankruptcy or guarantee foreclosures, and two tax returns must be filed in bankruptcy cases. The same rules apply to the Canary Islands General Indirect Tax.
5. Directors of companies that repeatedly file tax returns without paying become subsidiarily liable. The liability limit for members of dissolved companies is also raised.
6. Not reporting foreign assets counts as unjustified capital gains under personal income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. and undeclared income under corporate tax, with a fine of 150% of the tax due.
7. The Tax Agency may take precautionary measures and freeze assets in cases of crimes against the Public Treasury, under judicial supervision, and investigate the assets of those involved.
8. The profile of taxpayers eligible for the draft income tax return is made more flexible, so the service can reach more people.

Who it affects

• Businesses and self-employed people: They cannot pay or receive cash for transactions of 2,500 euros or more, and must keep payment receipts for five years.
• People with foreign accounts or assets: They must report them to the Tax Agency or face fines and tax adjustments under personal or corporate income tax.
• Company directors: They are subsidiarily liable if their company repeatedly files tax returns without paying.
• Income taxpayers: More of them can receive the draft income tax return.
• Members of dissolved or liquidated companies: They answer for pending tax debts up to the value of their liquidation share and other assets received.

Words worth knowing

Inversión del sujeto pasivo (reverse charge)

A mechanism where, instead of the seller charging VAT, the buyer pays it directly to the Tax Agency, guaranteeing the tax is collected.

Medidas cautelares (precautionary measures)

Provisional decisions to prevent assets from being hidden or spent while a proceeding is ongoing.

Responsable subsidiario (subsidiarily liable party)

A person who owes the tax debt only if the Tax Agency cannot first collect it from the main debtor.

Ganancias patrimoniales no justificadas (unjustified capital gains)

Assets or money a person holds that do not match the income and wealth they declared.

Estimación objetiva (objective estimation method)

A method for some self-employed people to calculate taxes using fixed modules (such as floor space or workers) instead of actual income.

income tax

The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries