13th April 2012 The €2,500 Issue

The Spanish Government prohibits as from now any payment in cash over the sum of €2,500 to any shops, companies or professional services, as means of blocking the path for trafficking black money. The sanction is for both the payer and the receiver. 

 

All Spanish need to inform the Government all their bank accounts, security savings, market values and properties owned, home or abroad. This cash figure also applies to traveller going abroad.

As far as I know, and everybody else does as well, that the most common and generally accepted (expected in fact) in the sale of property is that an agreement is sealed first between the seller and buyer, that only a reasonable part of the price is paid officially in the presence of the Notario's office (Law firm mainly handling legal matters but not crime), the balance in cash is paid directly to the seller, thus avoiding paying tax on the full amount. 

 

The notarios themselves are fully aware of this, but usually excuse themselves discreetly at the right moment, leaving the 2 parties to conclude the private payment. (so that they can honestly say they never saw any money changing hands I suppose).

Human nature being what it is, when the issue is to do with gaining or losing money, the wise old saying demonstrates efficiency: When there's a will, there's a way. The practice will continue or even better ones would be found. Whatever the Governments says, public cunning rules. 

 

Tags: blackmoney, sanction

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