Forget about paying more than € 1000 in cash, you can receive a large fine.

No more being able to pay the amount you want in cash, because since last July 11, new limits have been imposed on this type of payment, specifically accepting only transactions of up to € 1000 in cash. From there, you can get in trouble with the Tax Agency.

Although a few months ago it was possible to pay in cash up to € 2,500, from now on we have new limits where this amount has been lowered even more, looking at € 1,000. In this way, and as reported by the OCU, any payment from a consumer to an entrepreneur or professional that exceeds € 1000 must be done by other means such as card or bank transfer, but no longer by cash.

Note that the limit is per operation, so if you have an invoice of € 1500, you cannot split it into several cash payments, everything must be done by bank transfer or by debit or credit card. If the rule is broken, you will receive a penalty with a fine of 25% of the amount paid. This sanction will have to respond to it both the payer and the receiver of the money.

On the other hand, the Treasury establishes that anyone who reports breach of the law within three months of payment is exempt from liability. In this way, if you have paid more than € 1000 in cash, and the recipient of the money reports you, in the end they will ask you for the entire fine.

Among the top tips for these types of cash payment issues, is that you always ask for the invoice in any transaction what you do. Obviously, do not pay in cash if the total amount is greater than € 1000.

Although it is rare that such a large purchase can be made in cash, if it happens you have to pay by bank transfer or especially with a debit card or credit card. If you have a limit on any of your bank cards when paying more than € 1000 per transaction, you can always extend it by consulting your bank manager.