Is it possible to buy a property in Spain with cash?

Law No. 7/2012 prohibits cash payments of €2,500 or more in transactions in which at least one of the parties is a businessman or professional. For payers who do not have a tax home address in Spain and who do not work as an entrepreneur or professional, the limit was €15,000.

Law No. 11/2021 reduced these limits to €1,000 for transactions with entrepreneurs/professionals and €10,000 for individual payers under the same conditions.

He. She Boundary violation For cash payments it is a serious administrative violation. Both the payer and recipient may be fined for the cash amount in excess of the maximum. They are both jointly and severally responsible. The fine is 25% of the amount is paid in cash. There is a possibility of a 50% reduction under certain conditions. If one party reports the violation to the tax authorities within 3 months, stating the amount and the identity of the other party, there will be no fine.

The violation and fine expire after 5 years. The period of violation begins from the day it is committed. As for the fine, the period begins from the day following the final imposition of the fine.

How much can be paid in cash?

Up to €99,999 can be paid in cash without prior notice, but this must be registered with a notary. Starting from €100,000, this must be reported in advance to the Money Laundering Prevention Committee via Form S-1. A limit of €10,000 applies to movements of money or checks to/from Spain.

When purchasing from or paying for a business or professional, a limit of €1,000 applies. Furthermore, payment must be made in a way other than cash and receipts must be kept for 5 years.

Large cash deposits in a bank account (from €100,000 for individuals, from €10,000 for entrepreneurs) must be reported to the Money Laundering Prevention Committee. This applies to both the buyer and the seller.

Receive payment in cash?

If you pay entirely in cash, there are several options:

• Physically hand the money over to the notary. This is recorded in the delivery note.
• Deposit into the joint account of the buyer and seller at the notary (quality account). After delivery, it will be transferred to the seller.
• Payment in parts to the buyer's own account, provided within limits and with notification to the Commission for amounts exceeding €100,000.
• By cashless payment, even if the funds are withdrawn in cash. This must be proven through bank statements.

The notary ensures that legal limits and reporting obligations are observed.