Spain to Monitor Card Spending Over €25,000 Annually Starting January 1, 2026

Starting January 1, 2026, all banks and financial institutions in Spain will be required to report monthly to the tax authority (Agencia Tributaria) on individuals whose annual spending via bank cards (debit, credit, prepaid, and virtual) exceeds €25,000.

What will be reported:

• Full name of the cardholder
• Card numbers and linked accounts
• Total amount of all transactions (withdrawals + deposits)
• Details of payments made to merchants (shops, services, etc.)
• For self-employed individuals and companies — reporting of all card receipts with no threshold.

Purpose of the measure:

Combating:

• Tax evasion
• The shadow economy
• Money laundering

Tax authorities will cross-check your spending against declared income. Discrepancies may trigger audits.

Who is affected:

• All Spanish residents
• Non-residents with Spanish bank accounts
• Expats, freelancers, investors — especially those who frequently use cards

Threshold: ~€2,083 per month — easily exceeded through regular expenses on housing, vehicles, travel, and investments.

What to do now:

• Review your 2025 spending — especially if near the limit
• Keep records of large payments — save receipts and invoices
• Consider alternatives: cash (up to €3,000 — no reporting), transfers between your own accounts
• Prepare explanations if spending is justified (investments, business, loan repayments)

Important: This is not a tax, but a monitoring mechanism. However, it cannot be ignored — mismatches may lead to fines and audits.

Source: Euroweekly News, data from Hacienda and Agencia Tributaria.