By Carlos Baos (Lawyer) •
Published: 19 Jan 2023 • 11:53
Sales, mortgages, inheritances, prenuptial agreements, gifts, etc. In deeds reflecting an economic transaction (such as the sale of a property) there are a series of formal requirements that many people are not aware of. We refer to the identification of the means of payment in Spain. In today’s article, we will analyse this issue and clear up the most frequent doubts that this matter usually presents.
It is common knowledge that there are many different forms of payment. Banker’s draft, bank transfer, nominative or bearer cheque, cash payment, etc. However, each of these means of payment has a series of formalities associated with them, that must be complied with in any case.
For instance, cash payments are nowadays extremely restricted. This is so because when one of the parties is a businessman or professional, payments of more than 1,000€ cannot be made. This limit rises to 10,000€ when neither of the parties is an entrepreneur and one of them is not domiciled in Spain for tax purposes.
1.The moment at which payment is made (before or at signing).
2. The exact amount that has been paid.
3. The type of payment used (banker’s draft, bank transfer, etc.).
But not only that, the cheque or proof of the bank transfer, must be attached to the deed signed, along with clear indication of both bank account numbers (origin and destination).
In addition to the above, it is worth remembering that, in order to combat terrorism and money laundering, there is a very long list of regulations, which also impose the obligation to declare the entry into national territory of more than €10,000, or movements within Spain of more than €100,000, in certain cases.
The identification of the means of payment in Spain is one of the most important steps in any deed involving a financial transaction, and it is advisable to be well advised in order to avoid any problems. If you have any doubts or questions on this subject, please do not hesitate to contact us.
Carlos Baos of White Baos Abogados recognised by BEST LAWYERS © International Magazine
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Lawyer Carlos Baos has been advising on variety of expat-related legal issues for years and weekly column offers free weekly insights.
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