The use of cash goes through one of its lowest moments. The proliferation of multiple forms of online payment coupled with the coronavirus pandemic that has favored these contactless methods are several of the reasons. However, many people still decide to accumulate money at home in case of need for emergencies or improvisations.

This money, which has traditionally been known as ‘money under the mattress’ (one way to keep it was in this secluded corner of our homes), is not subject to different legislation and it is not forbidden to keep it at home instead of the bank: that is, the salary can be withdrawn immediately after it has been received in our sand stream. But, yes, everything has to be correctly declared.

First of all, the citizen must know that the Treasury is aware at all times of certain operations: those that involve 500 euro bills and those that refer to account income of 3,000 euros or more.

In these cases, the banks must immediately inform the Tax Agency of the operation. Later, the agency will decide whether to initiate an investigation or to do nothing with the information received. Be that as it may, the procedure is mandatory for banks when the operation is carried out.

How to declare money ‘under the mattress’

The reason is that the Treasury, in its work of prosecuting fraud crimes, checks all these movements for its subsequent declaration. The taxpayer has it easy: he simply has to take into account these amounts in his Income Declaration, that is, declare it in the Rent of the corresponding year.

For this, the formula is clear and simple. Even if he has the money at home and not in his bank account, or even when he re-enters it into his account after having had it at home, the taxpayer must declare the origin of that money: income from work, economic activities, of movable or real estate capital.

Cash and the operations that involve it are under close surveillance by the Government, which regards it as a haven for the black economy and an obstacle to the “traceability” of the money used in these movements.

That is why the Executive, after months of parliamentary negotiations and various amendments, approved in summer Law 11/2021, of July 9, by which, as a method of fighting fraud, it is reduced from 2,500 to 1,000 euros (10,000 euros in the case of non-residents in Spain, with exceptions) the general payment limit, given that, according to the wording of the law, the use of cash in economic operations “notably facilitates fraudulent behavior.”

Failure to comply with these limits carries penalties. As stated by the Bank of Spain on its website, when the payment is greater than 1,000 euros, the fine will be 25% of that amount in which the limit is exceeded, and will have to be paid jointly and severally between the payer and the recipient of that money.

However, the agency explains that some payments are outside this limit: “It is not applicable to payments and income made in credit institutions, in payment institutions and currency exchange operations in cash carried out in open currency exchange establishments. to the public”.

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