False warnings are circulating on social media that Spanish bank account holders must inform the country’s Tax Agency before withdrawing more than 3,000 Euros (2,500 pounds) in cash or risk fines of up to 150,000 Euros (130,000 pounds). A May 10 Facebook post, opens new tab shared a graphic titled: "ESPAÑA NOTICE OF CASH WITHDRAWAL" which states: "If you wish to withdraw more than €3,000 in cash, you must notify the Tax Agency at least 24 hours in advance of the withdrawal. You must also specify the purpose of the withdrawal."
It continues: "Failure to comply with this requirement may result in fines of up to €150,000."
"This is insane! They government want to know every single single transaction you do," one Facebook user captioned the graphic, "I wonder if this is disguised to prevent runs on banks…"
However, the Spanish Tax Agency told Reuters that individuals have no reporting duty and Spanish law orders banks - not customers - to flag cash movements above 3,000 Euros. A Spanish Tax Agency spokesperson said in an email: "It's completely false that the Tax Agency requests advance notice of withdrawals. Nor do citizens have to notify us afterward."
Article 4 of Order EHA 98/2010, opens new tab, published by Spain's finance ministry in January 2010, says that credit institutions must file an annual information return when a single cash withdrawal or deposit exceeds 3,000 Euros. It does not mention citizens. "It's used for tax control purposes, the Spanish Tax Agency spokesperson added.
While there is no legal limit, most Spanish, opens new tab banks, opens new tab cap customers’ daily ATM withdrawals below 3,000 Euros, so customers who need more must visit their bank branch.
CaixaBank, for example, says on its blog, opens new tab that staff issue a receipt and report sums above 3,000 Euros to the Tax Agency and the Bank of Spain.
FINE FOR 'OBLIGED ENTITIES'
The Facebook post's 150,000-Euro figure also misquotes Spanish law. Article 56, opens new tab of Spain's anti-money-laundering statute (Law 10/2010) sets 150,000 Euros as the minimum fine for "very serious" breaches by obliged entities - credit institutions - that ignore monitoring rules. The provision does not target private individuals withdrawing their own funds.
VERDICT
False. Banks must report cash withdrawals over 3,000 Euros but customers do not have to inform the Tax Agency in advance and face no 150,000-Euro fine for failing to do so.
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“Opens new tab” Tell me this isn’t a cut ‘n paste job without telling me… Guffaw.
Banks having to notify agencies of an individual withdrawing €3,000 is pretty concerning and noteworthy. People should be able to withdraw and spend their money as they wish, without having to answer why at some point. €3,000 isn’t even that much these days when you consider the cost of rent. In 10 years it will be pocket change.