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We blog legal and tax information targeted to resident and non resident UE citizens in Spain to help them with these issues and to solve doubt and generate controversy about these matters.

Reporting obligations of banks and financial entities in general dedicated to traffic banking or credit. Royal Decree 1/2010
05 February 2010 @ 19:30

With the approval of this Royal Decree the obligation of declaring the loan balances smooths out a little bit because such financial entities will need only report the personal loan balances at December 31 if they are higher than € 6,000. However, these entities are required to inform the deposits, fund provisions or recoveries that are made in cash currency or bank notes in excess of € 3,000 (until now this only happened with the checks).

In addition, these entities when providing the management service of charges through credit card or debit card to entrepreneurs and professionals established in Spain will have the obligations to report transactions undertaken by these entrepreneurs and professionals attached to the system when the annual net of recovery exceeds 3,000 €
This might be a way to control those systems like PayPal, etc.. but I have to acknowledge that I am not sure because the world of Internet is a very complex world and I am not sure whether systems like PayPal has the status of bank financial entity.If not, don´t worry Tax Big Brother will take in account in case they see a gap there, no doubt about it.

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antoniojara@serveco.es

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4 Comments

Paul said:
05 February 2010 @ 19:34

Thanks for the information. Are you saying that any transaction into a bank account of over 3000 Euros will be reported to the authorities?

Thanks

Paul

Antonio Robles said:
08 February 2010 @ 15:41

Hi Paul,
Not all of them, just to deposit or to withdraw from the bank account more than 3.000 € BUT IN CASH OR BANKNOTES, or if you use your credit-debit card in a cash point and again you take with you cash or banknotes.

In case of people that has a shop and has a credit card system to cash from their clients, when the net payments received from the clients goes beyond 3.000 € in the year then the banks will have to report of all the operations made by the system of the credit card.

Being an honorable citizen is easier everyday, because they leave you less and less choices to avoid taxes.

Best regards,
Antonio

Martin said:
13 February 2011 @ 14:03

I have just found this old - but new to me - information. Sorry for my slow understanding, but could you please further clarify:

If I as a private person deposit or withdraw more than 3.000 euros in cash to/from my bank account then the bank has to report. Does this apply only to one-time transactions exceeding 3.000 € or is it when the accumulated amount during the year exceeds 3.000 €?

Thank you and best regards
Martin

Antonio said:
18 February 2011 @ 14:29

Hi Martin,

It is each transaction.

Best regards
Antonio