Know Your Limits: Strategies for Avoiding Them

There are many tools available on our iPhones and other mobile devices for making money transfers, such as PayPal, Bizum, and bank apps. However, it is important to be aware that the Tax Agency closely monitors these transactions. Transfers between family members are legal, but there are limits set by Spanish tax laws that must be followed.

The Tax Agency requires that any transfer considered suspicious, exceeding 3,000 euros, be reviewed. Additionally, the Money Laundering Prevention Law states that transfers over 10,000 euros are not allowed, with most banks limiting digital transfers to 6,000 euros.

If you wish to make a transfer greater than 10,000 euros, you must comply with the General Tax Law by declaring it before the administration. Additionally, transfers over 6,000 euros between family members are considered donations and may be subject to Gift and Inheritance Tax.

Each autonomous community in Spain has specific regulations regarding Gift and Inheritance Tax, with reductions and exemptions based on the relationship between individuals and the amount transferred. Loans to family members must be accredited through the Property Transfer Tax via Model 600.

Failure to declare these transactions can result in economic sanctions ranging from 600 euros to 50% of the transfer value. It is important to ensure that all transfers are correctly declared to avoid any penalties from the Tax Agency.

In conclusion, while it is common to make sporadic transfers for family expenses, it is crucial to be aware of the limits and regulations set by Spanish tax laws to avoid any issues with the Tax Agency.