Having cash stored at home is legal, as long as the person who keeps it can prove its origin in case the Tax Agency claims it.
Provided that the origin of the money and its obtaining is legal, the Treasury will not carry out any type of inspection, except in those cases in which it is essential that people declare the origin of the money saved. Nevertheless, that money saved must be declared to the Treasury through the Income Statement to avoid possible negative consequences.
Income over € 3,000 or payments of € 500, under supervision
The Treasury is in charge of investigating the money that is entered and withdrawn from bank accounts. Especially, in those cases in which a large amount of money circulates, for example, cash payments of 500 euros or more, and also in income bank that are of 3,000 euros or more.
In addition to the risks that can be run in case the money is not declared on time, such as financial penalties and surcharges, there are other negative effects as well.
Inflation or theft, other negative consequences of keeping it
One of the problems derived from keeping money at home can be increased likelihood of theft or natural disasters. Inflation also comes into play with a negative impact, which would cause the devaluation of the money kept at home.
By means of the law 11/2021, of July 9, the Government established new measures to prevent and combat tax fraud, in addition to reducing the maximum that can be paid in cash. Since the start of the pandemic, card and app payments have increased to the detriment of cash payments.
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