International transfers: How much money can be transferred without declaring?

Spain By Liudmila Simakova Oct 19, 2023

Receiving international transfers: How much money can be transferred without declaring?

Tax regulations and requirements can be complicated to understand, but at Western Union we can answer all your questions. In the case of international transfers, it becomes even more complicated, since we are talking about two different countries with different laws.

Today we will explain what Spanish tax law says about receiving transfers from other countries and we will put an end to one of the most common doubts: how much money can I receive by transfer without declaring it?

International money transfer regulations in Spain

When receiving money from a foreign country, it is not necessary for tax authorities to be aware of it. By law and to prevent money laundering and other tax crimes, banks notify the authorities with the following movements:

  • Transactions with €500 banknotes
  • Payments or cash movements above € 3000
  • Credits worth more than 6000 €.
  • Transactions in excess of €10,000

Not all movements and transfers are monitored; day-to-day transactions that fall within normal monetary thresholds do not have to be declared in a special way. But what about tax returns and receiving international transfers?

When filing a tax return, there are two different situations:

  • In the usual annual tax return you will of course have to include all the income you have earned. This includes both those coming from this country and those coming from abroad, so you should take this into account in order to file your tax return accordingly.
  • When you receive or send a transfer of a high value (exceeding the values established by the regulations) you are obliged to make an informative declaration to record the money and rule out any possible tax offence. You will, of course, have to pay the relevant taxes, but this declaration is only for the purpose of informing the tax authorities.

What is the maximum amount of money that can be received without declaring

How much money can I receive by transfer without declaring it is probably the most frequently asked question. In Spain, declaring an international transfer received is necessary when it exceeds €10,000. Law 10/2010, of 28 April, on the prevention of money laundering and the financing of terrorism in its article 34 states:

The following movements shall be subject to prior declaration under the terms established in this Chapter: “Natural persons who, acting on their own account or on behalf of a third party, carry out the following movements: Exit or entry into national territory of means of payment for an amount equal to or greater than 10,000 euros or their countervalue in foreign currency”.

This does not only concern international transfers as such, but also includes other means of payment such as paper money, prepaid cards and even gold. In any case, the limit remains €10,000.

How much can be sent abroad undeclared

Now that we have discovered how much money one can receive by transfer without declaring it, let us review the opposite case: if a person makes a money transfer abroad (as well as in national territory), he/she is not obliged to report this movement to the tax authorities. According to the regulations, it is the person who receives the transfer who must declare this income, taking into account the tax regulations in force in the country where he/she has established his/her residence.

How international transfers are declared

How do international transfers have to be declared? It depends on the nature of the transfer. The most common cases are the following:

Bizums, transfers from a family member and small incomes

  • Bank transfers of this type usually involve small amounts of money and are of little importance to us as users, but when it is time to file a tax return or make a tax declaration, many customers wonder what the rules are in these cases. However, when it is time to file a tax return or it is time to make a tax declaration, many customers wonder what the regulations are in these cases. Do you have to pay tax when you receive a bizum transfer from a friend? From a family member? Let us answer all your questions.
  • In the case of receiving income derived from an economic activity or work by any application such as Bizum or Paypal, it would have to be declared by the type of income and the income would have to be declared in the income tax as it is normally done. The way it is received, in this case, would be irrelevant. On the other hand, in cases of small amounts, such as a beer, it would not have an effect on taxation. What is recommended is to put a clear concept of the reason for the transfer.
  • Money transfers between family members are more than common and are made from all over the world, but how should they be taxed? Money transfers between family members are considered as donations under current regulations and should be taxed as such, although the tax authorities do not usually have direct control over the movement of small amounts. However, if you have received a transfer from a family member in an amount exceeding €10,000, you will have to declare it as stated above.

How to declare a cross-border money transfer

There are several mandatory forms and declarations for those who carry out monetary movements between countries or have assets abroad. One of the most important is Form 720. In this form, all assets exceeding €50,000 and located in a foreign country must be declared, which covers cash as well as goods and other assets.

With regard to the declaration of international transfers, you should know that if you receive an amount greater than €10,000 from a foreign country, you must make a declaration of means of payment to the AEAT with the so-called Form S1. This form is also applicable if you enter or leave the country with an amount of money, again, greater than €10,000 or greater than €100,000 in transfers within the national territory.

Knowing these limits and procedures is essential as they are very costly, and no one wants to have to face them. In fact, the fines from the tax authorities for this type of situation are at least €600 and can be up to 50% of the value of the means of payment used. In addition, if you fail to justify the origin of the money, fines of up to €150,000 can be applied in the most serious cases.

How to send and receive international transfers with Western Union.

If you need to send or receive an international money transfer, Western Union can help you transfer money between international accounts easily, quickly and securely. Discover all the options available and choose the one that suits you best.

All you have to do is choose the destination and the amount of the international transfer. Then you will see the exchange rate applied by Western Union. Then, depending on the destination, you can choose between different methods of money delivery: from Western Union to bank account, mobile wallet, card or even cash withdrawal. All options are available to ensure your convenience, and to make sending and receiving money from all over the world as easy as possible.

You can even receive money through the Western Union app, quickly and easily. Just like through our website, with our app you can also select from a variety of options that make it easy for your loved ones to receive international transfers in the most convenient way to facilitate the whole process. Try out the Western Union app and start making all the transfers you need from your mobile phone.

Now that you know how international money transfers work, how much money you can receive per transfer without declaring it, how the tax system works for money transfers between countries and when to declare an international transfer, don’t hesitate to use Western Union for all the transactions you need.