If you’re planning to withdraw a large amount of cash in Spain, there’s no law stopping you from accessing your own money.

However, banks are now required to notify the tax agency (Agencia Tributaria, aka the Hacienda) about certain cash transactions.

Under recently updated regulations, banks must report cash withdrawals, deposits and certain over-the-counter cash transactions of €3,000 or more to the tax authorities.

The reporting requirement stems from anti-fraud and anti-money laundering rules and is carried out automatically by the bank.

Customers do not need to complete any paperwork themselves.

The information sent to the tax office includes details such as the amount, the date of the transaction, whether it was a withdrawal or deposit, the account involved and the identity of the person carrying out the operation.

Importantly, this does not mean you are prohibited from withdrawing more than €3,000. If you have sufficient funds in your account, you are entitled to access your money.

For particularly large withdrawals, however, your bank may ask you to give advance notice.

This is generally a practical issue, as many branches do not keep large amounts of cash on site.

Banks are also legally required to verify a customer’s identity for cash transactions of €1,000 or more, but this is separate from the reporting obligation and forms part of routine anti-money laundering checks.

Another common misconception concerns Spain’s €1,000 cash limit.

This cap does not apply to bank withdrawals or deposits. Instead, it applies to cash payments between a consumer and a business or professional. In most cases, purchases of €1,000 or more cannot legally be paid in cash.

Anyone who breaches that rule can face a fine of 25% of the amount paid in cash, with both the payer and the recipient potentially held liable.

For most people, withdrawing or depositing cash remains perfectly legal, but larger transactions are subject to greater scrutiny by both banks and the tax authorities.