Tax authorities always keeps an eye on the banking movements of the Spaniards in order to avoid tax fraud and that is why banking entities set limits on cash withdrawals, either due to the surveillance of the Tax Agency or for the security of your customers’ accounts. When you go to a banking terminal, you must also take extreme precautions due to the high number of scams that occur today.
Despite the rise of new technologies that have led to an increase in payment by credit card, mobile phone or even smart watch, a large number of Spaniards continue to pay daily in cash and therefore species It continues to move at full speed in all parts of the peninsula. A report prepared by the Bank of Spain in 2023 places the young public as the main consumer of card payments while older people continue to pay their transactions in cash.
For this reason Tax authorities is always aware of all cash movements in order to avoid tax fraud, or what amounts to the same thing, money generated by a person who does not declare it to the State Tax Agency in order to avoid paying taxes. This can result in a small administrative fine up to several years in prison. So you have to be careful in this regard.
The bank that limits cash withdrawals
All banks in Spain have limits on cash withdrawals and one of them is CaixaBankwhich sticks to the amount of 1,200 as the limit to make any cash withdrawal, although the bank also specifies that it can be extended through the mobile application, through a phone call or in the same branch, since This bank also provides its customers with the possibility of making a higher withdrawal, but this must already be done at the bank’s office.
3,000 euros is the fixed amount Tax authorities at most when withdrawing cash from a bank and from that moment it will be necessary to provide proof at the bank office, which will also notify the transaction to the Bank of Spain and the Tax Agency“There is no legal limit to withdraw money from an ATM, but if you want to withdraw more than 3,000 euros at a time, you will have to speak with a bank employee and prepare a receipt that will be sent to both the agency tax and the Bank of Spain,” CaixaBank confirms on its website.
Banks are required to notify the Treasury of amounts over 3,000 euros as well as those made with a 500 euro note on the front. However, after withdrawing 1,000 euros in cash, the Tax Agency You can now ask banks about the situation of the person concerned. For all this, and also in order to preserve the security of individuals’ accounts, most banks have established a cash withdrawal limit of between 600 euros and 2,000 euros per day, an amount that can be increased in case of extreme necessity.
Bank Withdrawal Scams
One of the reasons why banks set a maximum cash withdrawal amount is related to security, and even more so in these times when scams are on the rise. In addition to the classic phishing which is carried out by sending an SMS with a link, the scam which consists of accessing the bank details of customers by installing a small camera in the bank terminal or by adding a card reader in the slot where the tool must be inserted.
Therefore, while withdrawing money from a bank, it is strongly advised to take extreme precautions and ensure that no one approaches you while writing the PIN and checking that the bank is not being manipulated.
