In June this year the Spanish Cabinet of Ministers approved an anti-fraud draft bill that will strengthen measures to combat fraud in Spain, thereby ensuring consistency with legislative developments in other EU countries such as France and Italy. The most significant of these measures will limit cash payments made to professionals or companies to €2,500. Payments between private individuals are excluded.
Breach of this measure would carry administrative sanctions – such as a fine of 25% of the cash amount paid – which would apply to both payer and payee. However, a party would be exonerated from punishment if it reports the offence to the Administration itself.
In addition, the draft bill establishes that sanctions in respect of unreported income are not time-barred and also brings in different mechanisms to streamline the process to recover debts.