Legal Advice

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Knowing the limitations on cash payments from abroad

The recent regulation against fiscal fraud at international level makes it increasingly difficult to pay with cash by citizens, both national and foreign, and within the latter, both European and non-EU.
However, in the case of European states, having mechanisms to combat tax fraud in their countries, in most cases, customers of these countries do not have any problem in making payment via bank transfer.
Within these measures to combat tax fraud is the need for customers to make an initial transfer to their new account in Spain from their bank account in their country of origin. Otherwise, the account will be blocked.
Transfers from bank accounts where the customer is not the holder are not advised because, as a result of an inspection, the account may be blocked until it is proof the origin of the transfer, and if the sender has paid taxes legally in the country they come from.
Therefore
1. Customers should avoid bringing cash to deposit in their bank accounts, beyond what they will spend on their stay in Spain, and about 300 or 500 euros to deposit on the new account, depending on whether or not applying financing (300€ for customers who do not request funding and 500 € for customers who take on a loan).
2. As we mentioned in the previous post, customers should bring business licenses, tax returns and identity documents to open her new bank account where they can set up direct deposit for water, electricity, community, IBI bills of the new home. These documents must be translated by a certified translator before they can use their new Spanish account.
3. Very important, customers should NOT bring large amounts of cash, beyond planning to spend on small purchases or other retail spending their stay in Spain. Because the bank will not accept the entry of large amounts of cash until it is provide a proof that the money has paid the applicable taxes (Certificate S1 at the airport). Even if you have such a certificate, your account may be blocked by the Bank of Spain on suspicion of money does not comply with the law.
Legal adviser at Legalmed indicate that this information is illustrative. In any case, the bank will confirm which documents you need for opening account. For more information contact at legalmed@legalmed.es

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There are many people visiting our country every year. Lots of them are captivated by the Mediterranean climate and Spanish cuisine among others. So much so that they end up buying a home in Spain.
Of all administrative, banking and legal steps to do so, in this post we are going to inform you about the documentation that a foreigner need to open a bank account in Spain, so you can set up a direct debit for water, electricity, community and IBI bills of the new home.
The documentation will depend on some factors, including the country of the customer, because according to it, the bank will require a number of additional documents if they think is a country with a high risk of money laundering.
If the customer only needs to open a bank account or if he/she also needs financing, he/she will require different documents. The main documents are the following ones:
– To open a bank account
o Passport.
o 3 last payslips.
o Income tax.
o And certificate of the company they work with information about the salary, the position in the company and since when is working.
– To apply for mortgage
o In addition to the above, it is also requires a Credit Report that will inform about any other credit requested. In Spain they would get them in CIRBE (Central Risk), RAI (Register of Unpaid Acceptances) and ASNEF (National Association of Financial Credit Establishments).
o Also they have to provide the latest mortgage statement, if they have mortgage on their home, or rental agreement if they live in a rented house.
However, in any case, legal advisors Legalmed recall that this information is illustrative, and the bank will confirm which documents you need in each case. There are reflected here the most usual in the most cases.
We would like to take this opportunity to thank Legalmed Advisors, for the advice offered for this post. For more information you can contact them at legalmed@legalmed.es