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Spain to Limit Cash Transactions to Fight Tax Fraud

Prime Minister Mariano Rajoy said the Spanish government will implement a series of measures to fight tax fraud at a Cabinet meeting on April 13 including limits on the use of cash.

Transactions of more than 2,500 euros that “involve at least one professional entrepreneur” won’t be allowed to be made in cash, Rajoy told Parliament today in the weekly question-and-answer session. Fines of 25 percent of the transaction amount will be handed to those breaking the rule, he said.

The government chose to implement an amnesty on tax evaders, which it expects will raise 2.5 billion euros, as it wanted to avoid increasing taxes, Rajoy said.

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