The growing popularity of Bizum has attracted the attention of the Spanish Tax Agency. Important changes are being prepared to strengthen transaction monitoring and combat undeclared income. Here is what you need to know.
Main change: removal of the €3,000 limit
Until now, banks were required to report to the Tax Agency only those transactions exceeding €3,000 per year. The Tax Agency now plans to completely eliminate this threshold.
What does this mean? From now on, all transfers, even small ones, will be under closer scrutiny if they appear to be commercial in nature or occur regularly. Banks will be required to send a monthly report on transactions related to business activities.
Which Bizum transfers must be declared
The Tax Agency considers the following income taxable, regardless of the amount:
Important: These incomes must be declared even if you are not registered as self-employed.
What about transfers between friends and family?
In principle, occasional transfers between individuals (paying for dinner, a shared gift) do not need to be declared.
Key limit: The Tax Agency has set an unofficial annual threshold of €10,000. Exceeding this amount in transfers between the same two people could trigger questions from the authorities.
Main change: removal of the €3,000 limit
Until now, banks were required to report to the Tax Agency only those transactions exceeding €3,000 per year. The Tax Agency now plans to completely eliminate this threshold.
What does this mean? From now on, all transfers, even small ones, will be under closer scrutiny if they appear to be commercial in nature or occur regularly. Banks will be required to send a monthly report on transactions related to business activities.
Which Bizum transfers must be declared
The Tax Agency considers the following income taxable, regardless of the amount:
- Payments for professional services: if you are a freelancer, self-employed, etc.
- Rental income: if you receive rental payments for an apartment or room via Bizum.
- Payments for economic activities: private lessons, selling goods (if it's regular activity), etc.
Important: These incomes must be declared even if you are not registered as self-employed.
What about transfers between friends and family?
In principle, occasional transfers between individuals (paying for dinner, a shared gift) do not need to be declared.
Key limit: The Tax Agency has set an unofficial annual threshold of €10,000. Exceeding this amount in transfers between the same two people could trigger questions from the authorities.
