View Full Version : What's the limit for paying cash into a bank at any one time in Tenerife?

14-11-2012, 15:01
Hi I understand that you can bring as much cash as you like into Tenerife as long as you can prove where it came from. ( which isnt a problem) but someone told me you can only pay so much a day into a non residents account otherwise they have to fill out forms and let the UK tax people know. I should point out that I'm Irish but I presume it would be the same. I was told it was 3000 Euro max. I've got nothing to hide I just don't want letters going back and forth to the tax people which I would have to reply to etc etc! I don't want the bother I'm retired!

14-11-2012, 15:15
you can take 10,000 without declaring it , after that you need a letter from your bank , so no problem --do you live here? or just holidays ? pm me if you want more info monika

14-11-2012, 15:43
See the article below from the Spanish press:
€2,500 cash limit for any cash payments or transactions for residents of Spain.

"Spain limited cash payments to 2,500 Euros

New Plan to combat tax fraud and limiting the use of cash

The Spanish prime minister, Mariano Rajoy, announced in the House of Representatives approved by the Council of Ministers of 13 April the plan announced on 5 January to combat tax fraud which aims to raise 8.171 million Euros in 2012

Speaking Rajoy materialized one of the most important measures that had been advanced earlier, limiting cash payments for certain transactions. The threshold at which they can not make cash payments stood at 2,500 Euros and the type of operation subject to the limitation is determined by the intervention in the transaction of at least one professional entrepreneur. Moreover, the failure of the new restrictions may involve fines of up to 25% of the amounts paid.

The measure does not affect payments for services between individuals but does affect freelancers and companies, sources have confirmed to the Ministry of Finance RTVE.es. The law, which is still in preparation, will also establish a procedure to avoid the payment is split with the intention of circumventing the rule.

An example: an individual can not pay more than 2,500 euros in cash to a standalone for reform at home. And, if the bill is 4,000 euros, either may make two payments of $ 2,000.

The Secretary of State for Finance, claimed on February 20 that the Government would be inspired by models of France and Italy, countries where it is possible to place the limit on cash 3,000 and 5,000 euros, respectively.

The union of the Treasury Technicians (Gestha) have warned that limiting cash payments from 2,500 euros is a measure that falls short, because the maximum fine of 25% of the amount paid will still mean that more defraud profitable to meet tax obligations.

In a statement, the group says it fears that the measure is "Inefficient" to end fraud bags customarily used 500 euro, the instrument "ideal" to settle outside the treasury operations, such as frames or distorted false invoices, the VAT carousel fraud and asset emptying of large companies bound for opaque accounts tax havens.

Also, remember that generate false invoices to undertake this type of fraud involves save both the payment of corporation tax (levied up to 30% of the amount) as VAT (From 4% to 18% depending on the applicable rate), representing an amount "far superior" to the 25% maximum should face if they are caught by the Treasury.

The government has left open the possibility of lower intermediate sanctions (Even a quarter of the amount paid in cash), which in some cases would still come out cheaper to defraud that comply with the law.

In addition, technicians believe that this measure will not end automatically fraud because the imposition of a fine, the absence of a quota disappointed, prevents the imputation tax offense, whereby the fraudster would be forced to face-well of the penalty-the payments of VAT, corporation tax or income tax in the case of a self."

14-11-2012, 15:52
i was more thinking how much cash can you bring on holiday?

14-11-2012, 15:59
From a different source and for non residents."
Treasury notes that so not to harm tourism to the limit of 2,500 euros will be expanded to 15,000 when the payer is a non-resident in Spain. The restriction does not affect the revenue made on a credit institution.

19-11-2012, 10:17
Over 10,000 euros is supposed to be declared to customs when you arrive

19-11-2012, 12:04
Universal - I think the cash limitations you've quoted are for paying for goods or services such as buying a car or paying for work done such as getting a new kitchen in.

I think the OP should check with the banks website if you're concerned how much you can pay in. If it was me, I wouldn't chance carrying that much cash with me.. If you already have a bank account in Tenerife, send the money over via your bank in Ireland. As its euro to euro, you don't need the services of a currency exchange company to do it.

19-11-2012, 16:38
Just received this today from the Associacion de Empresarios de Arona: (will attempt to re-post translation).

Estimado Asociad@,


El artículo 7 de la Ley 7/2012, de 29 de octubre, de modificación de la normativa tributaria y presupuestaria y de adecuación de la normativa financiera para la intensificación de las actuaciones en la prevención y lucha contra el fraude, establece la limitación de pagos en efectivo respecto de determinadas operaciones.

En particular se establece que no podrán pagarse en efectivo las operaciones, en las que alguna de las partes intervinientes actúe en calidad de empresario o profesional, con un importe igual o superior a 2.500 euros o su contravalor en moneda extranjera.

No obstante, el citado importe será de 15.000 euros o su contravalor en moneda extranjera cuando el pagador sea una persona física que justifique que no tiene su domicilio fiscal en España y no actúe en calidad de empresario o profesional.
A efectos del cálculo de las cuantías indicadas, se sumarán los importes de todas las operaciones o pagos en que se haya podido fraccionar la entrega de bienes o la prestación de servicios.

Se entenderá por efectivo los medios de pago definidos en el artículo 34.2 de la Ley 10/2010, de 28 de abril, de prevención del blanqueo de capitales y de la financiación del terrorismo. En particular, se incluyen:

• El papel moneda y la moneda metálica, nacionales o extranjeros.
• Los cheques bancarios al portador denominados en cualquier moneda.
• Cualquier otro medio físico, incluidos los electrónicos, concebido para ser utilizado como medio de pago al portador.

- - - - - - - - - - merged double post - - - - - - - - - -

stimated Asociad @,

I hereby send information concerning the entry into force of limited CASH PAYMENTS UNDER ARTICLE 7 OF THE LAW 7/2012, of 29 October

Article 7 of the Law 7/2012, of October 29, to amend the budget and tax legislation and adequacy of financial regulation for the intensification of the actions in preventing and combating fraud, establishes the payment limitation cash for certain operations.

In particular states that can not be paid in cash transactions in which any of the parties acting as employer or profession in an amount equal to or greater than 2,500 euros or the equivalent in foreign currency.

However, this amount will be 15,000 euros or the equivalent in foreign currency when the payer is an individual who does not have to justify their tax residence in Spain and does not act as an entrepreneur or professional.
For the calculation of the amounts indicated, plus the amounts of all transactions or payments that may have split the delivery of goods or provision of services.

The term cash means of payment as defined in Article 34.2 of Law 10/2010 of April 28, prevention of money laundering and terrorist financing. In particular, they include:

• Paper money and coins, foreign or domestic.
• The bearer checks denominated in any currency.
• Any other physical means, including electronic, designed to be used as payment to the carrier.

19-11-2012, 16:45
Universal is your impression this refers to individual bills or is an over all paying concept. I cant get a straight answer on this.

19-11-2012, 16:48
Seems a lot here will pay with bar gold now they acumalated via the compra oro shops all over these last few years .
So they don't care about the euro limits on paying .

19-11-2012, 17:06
My understanding is that the above applies to all cash transactions of over 2,500€ between two individuals and/or small business's, this is now totally illegal. (including "al portador" cheques and the like)
It is also the obligation of the bank to inform Hacienda of any "pay-ins" in cash over this sum.
Despite using the excuses of prevention of money laundering and the funding of terrorism as reasons for the introduction of this act, this measure of petty bureaucracy will have no effect on either and is just a further step in the total control of the finances of both the individual and small business people by the state.

19-11-2012, 17:43
Universal is your impression this refers to individual bills or is an over all paying concept. I cant get a straight answer on this.

This is the information I received from my accountant, regarding this issue, and it includes split payments.

Dear All,

Please take into account the following new rule regarding payments in cash or with “Al portador” bank cheques.

Rule: Law 7/ 2012 dated 29th October 2012.
Applicable from: 19th November 2012.

a.) Every trading transaction within two businesses or within one business and a private, where business is either a corporation or an autonomo (self employed), cannot from this MONDAY (19th) onwards, be paid in CASH or with an AL PORTADOR Bank cheque, if the amount of the transaction overpasses 2500 euros. It can be paid with nominative bank cheques, credit cards, bank transfers or any other way where both payer and paid can be identified.

b.) If the payer is a PRIVATE NON RESIDENT, and can probe that he is not doing a professional /business transaction, but a private transaction, the threshold increases to 15.000 euros. So private Non residents, will be able to pay up to 14.999,99 euros in cash.

c.) The amount needs to be understand as the sum up of the value of a transaction. So if payment is split, so that for instance a CAR is sold for 6000 euros in three payments of 2000 euros, (buyer is resident private or business and seller is a business), all this operation cannot be done in cash or with al portador bank cheques.

d.) Another example for real estate: If a client wants to buy a house which is valued in 200.000 euros and leaves a deposit of 2.000 euros. This deposit, as part of the 200.000 euros house value, cannot be done in cash or “al portador” bank cheque.

e.) Every transaction needs to be properly documented and probe of how payments where done, needs to be preserved at least during 5 years, since transaction took place.

f.) What would it happen if you took no notice of this new rule?

a. Both payer and paid would be found guilty of an administrative offense. The Authorities (National Tax Office) could decide to choose within payer or paid and request a fine for the 25% of the value of the amount paid in cash.

b. If the transaction took place irregularly, with cash payments over 2500 euros, any of both participants (buyer and seller/ payer and paid), could denounce the irregularity to the Administration within three months since the operation took place, and that would exonerate the person who denounced the irregularity.

19-11-2012, 19:34
So its going to be even harder for the banks.

The way it is the businesess will keep their cash in a sock now instead of depositing it in the bank.

If you go to the bank its a 2 hour que to deposit and they dont give any interest anyway.