Cash Payment Limit For Your Vacations
If you plan to go on a honeymoon or take a trip in a big way and the bill amounts to more than 2,500 euros, you should find another form of payment other than cash.
1. The law
In 2012, the Government introduced a cash payment limit to improve control of payments and prevent fraud. It is not common to exceed that limit, but on holidays we throw a little more out of pocket, so keep that in mind.
The law establishes that any payment transaction of 1,000 euros or more in which both parties are professionals or companies must be made employing another type of payment that is not in cash. If we talk about individuals that limit is 2,500 euros.
Important: it is also not possible to pay in installments of that amount higher than the 1,000 euros established.
In other words, for example, on an invoice of 4,000 euros, you cannot pay the 1,000 of the limit in cash and the rest using a credit card. You must pay all this amount by the same means of payment, and in this case, the possibility of paying in cash is canceled, so you would have to find another way to make this payment.
With payment in cash, the law understands that we refer to metallic currency and “metallic paper” as called in Spain, as well as bearer bank checks. Therefore, payments by credit or debit cards, transfers, or nominal checks, among others, would be free of this law.
In the case of credit cards, it is not possible to pay the rest of the invoice in cash if there is not enough money in your card account. So you should be aware of your card balance if you intend to pay this way.
The limit amounts to 10,000 euros when it comes to individuals who do not reside in Spain as long as they do not act as professionals or entrepreneurs. It is possible to pay in foreign currency equivalent to that amount.