Analyzing the way of paying in Spain, the dominant method is cash. However, in 2022 – the latest data published by the Bank of Spain – the growth gap between card payments and cash withdrawals remained, both in volume and imports. However, if we are going to deposit money into the bank account, it is interesting to know that if the maximum amounts are exceeded, the Tax Agency may require supporting documents. There is also some limitation on cash withdrawals.
Specifically, last year cash was used in 59% of transactions carried out at physical points of sale, compared to 72% in 2019. It is the most used means of payment for small import payments in physical stores and for operations between individuals.
In order to use cash, it is necessary to have a bank account. The Bank of Spain (BdE) explains that “cash can be used without limitations in relations with our bank, but we must take into account different issues.” Specifically, you must take into account whether there are limits for withdrawing cash.
Limit of money that can be withdrawn from the ATM
The first limit is the money in the account from which it is withdrawn. Entities must deliver the requested amount, as long as there is an account balance. The BdE warns that if you are going to withdraw a significant amount, your bank may request that you notify it with reasonable advance notice, provided that it does not have sufficient funds to meet your request.
In addition, any entity will require identification in the event of carrying out any cash transaction for an import equal to or greater than 1,000 euros. Likewise, the maximum money that can be deposited without justifying it is 3,000 euros. From this amount, the Tax Agency may require supporting documents and proof of receipt of the money.
On the other hand, if a “large amount” is deposited, the bank may delay counting the money delivered. In case of deposit, you will be able to use that money from the moment the deposit takes place. of the receipt of funds.
What commission can the bank charge for withdrawing money?
Beyond the limits, when withdrawing cash you must also take into account the possible commissions, which will depend on whether the holder has debit or credit cash and, on the other hand, if he is a cashier of the entity itself. . or from another entity.
If you request money by debit, the entity will not be able to apply any commission if it is its own ATM. If the ATM is from another entity, only the commission applied by the entity that owns the ATM can be passed on to the client. For its part, to withdraw cash on credit, the BdE explains that banks, in their own ATM, “usually apply a percentage import with a minimum amount.” And in an ATM of another entity, in addition, they can “pass on you the commission applied by the entity that owns the ATM.”
In any case, in order for the entity to charge a commission, they must inform you in advance about their conditions and you must accept them expressly or tacitly. And before proceeding to withdraw cash, a screen on the ATM must be announced with a message whether the service is free or the cost involved, both by your entity and the entity that owns the ATM.
