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MONEY

How much cash can you travel with, store at home or deposit in Spain?

Did you know that Spanish authorities have limits to the amount of money you can carry on you, deposit in a bank account or travel with to Spain? Find out what these and how you need to declare these amounts if you go over the limit and the potential fines.

How much cash can you carry in Spain?
What are Spain's cash limits? Photo: moerschy / Pixabay

You may need to carry, deposit or travel with large amounts of cash due to your work, your own business or other personal matters, but there are in fact laws in Spain which prohibit you from doing this over certain amounts, without declaring it first. 

Carry on you

The law on the prevention of money laundering and terrorist financing sets the maximum amount of cash that you are allowed to carry with you at €100,000.

If for some reason you do need to carry this amount, you can do so, but the Treasury must be notified using the S1 form. This is a document that notifies the Tax Agency of the declaration of the movement of money.

You can find the S1 form here

There are also limits as to the amount you can pay for something in cash in Spain. Last summer, this amount was changed from €2,500 to only €1,000. This means all amounts above €1,000 have to be paid by card. 

READ ALSO – EXPLAINED: What are Spain’s new rules and limits on cash payments?

Travel with

If you are travelling abroad from Spain, the limit of money you can take out of Spain with you drops to €10,000. Likewise, the amount of money you can bring into Spain from overseas in cash is also €10,000.

If what you have equals or exceeds this amount, the money must also be declared by presenting the S1 from. If you are travelling within Spain, the amount is set at the €100,000 limit of the amount of cash you can carry on you.

Deposit  

The maximum amount you can deposit in a bank without having to declare it in Spain is also set at €10,000.

Remember, however, that if your deposit exceeds €3,000 the bank does have an obligation to notify the authorities of your operation.

Store at home

Having money stored at home under the mattress or in a safe for example is legal, as long as it has been obtained legitimately and is declared to the Tax Agency. It may however lose purchasing power due to inflation.

There are in fact no regulations that prohibit storing your money at home, regardless of the amount, as long as you can prove, when necessary, how you obtained it.  

Fines for not declaring the movement of money

Failure to follow the procedures specified above can be very costly.

In order not to receive penalties, you should carry the S1 form with the cash, or other means of payment that can be considered by the authorities as cash.

If the authorities stop you and verify that the money has not been declared, all of it will be confiscated from you. In addition to this, there may also be possible fines which range between €600 and double the amount you had on you.

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PROPERTY

What the Euribor rise means for property buyers and owners in Spain

The rise in the Euribor interest rate, used to calculate mortgage payments in Spain, is causing big changes in the mortgage rates.

What the Euribor rise means for property buyers and owners in Spain

Looking to buy property in Spain? Already a homeowner here? Well, you may have heard something about rising interest rates recently.

Or perhaps changes to the terms of your mortgage. Or the Euribor – but what is it, and what’s going on?

What is Euribor?

In Spain, Euribor is the interest rate most often used to work out mortgage payments and to calculate both variable and fixed rates.

It is anchored to the interest rate set by the European Central Bank, and, as we are now seeing, quite responsive to global economic events.

It’s the interest rate that banks in the Euro Zone use to lend to each other, so when the base rate goes up, the Euribor does too, which sends mortgage interest rates across the Eurozone rising. 

Rising rates

Most Spanish mortgages with variable rates normally vary based on a variety of factors, but this number has been rising and in May 2022 saw figures of 0.240 percent (Tuesday May 17th), well above the average. 

The rises throughout May are leading many in Spain, and indeed across Europe, to wonder how high their mortgage rates can go, and when the rises will stop.

Banco de España has estimated that the increases could range from anything between €35 a month to an additional €400. Bankinter predicts the Euribor rate will finish the year at a staggering 0.40 percent, but, more encouragingly, Caixabank’s prediction puts it at just 0.13 percent by the end of 2022.

On Euribor.com.es, a website that tracks the index on a daily basis, they suggest that the market consensus predicts the Euribor will finish at around 0.3 percent at the end of the year, but could reach as high 0.8 percent in 2023.

All of them agree, and most other economic indicators suggest, that whatever the figure at the end of the year, it will remain positive, so it seems almost certain that mortgages will continue to rise throughout 2022 at the very least.

This instability, in addition to global inflation and supply chain problems, could mean that mortgage rates will be affected at least until 2023, with some predictors even signposting 2024 as the possible end of a rise in mortgage prices.

With things uncertain in the mortgage industry, and the world economy more broadly, perhaps you’re thinking of ways to try and insulate yourself from the climbing interest rates.

How to protect yourself from the rising rates

One way to weather the storm of interest rate increases is to change your mortgage from a variable to a fixed rate, either by negotiating with the your bank or by changing bank altogether – a process known as subrogation.

According to data from MyInvestor, during March and April the number of subrogations has started to rise.

Subrogation basically means switching the mortgage from one bank to another to change its interest rate. Although it does involve certain charges in order to do so – you pay the valuation of your house, which normally costs a few hundred euros, and a fee charged to the bank you are leaving, which can cost up to 2 percent of the outstanding amount – it could, and probably would, work out cheaper than paying the hiked interests rates over time.

You could also try and take out a new mortgage with another bank and use the borrowed money to settle the loan. This is, of course, a more expensive option as you have to pay the appraisal, the commission for early repayment of the current credit (again, up to 2 percent of the outstanding amount) and the expenses associated with its cancellation of registration, which normally runs to around €1,000.

READ ALSO: Spanish mortgages – Ten things foreigners should know before getting one

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