21 Oct '25

Declaration and Control: Managing Capital Upon Entry to Spain

The Essential Declaration Guide for EU/EEA Residents

If you are planning residency or investments in Spain from a European Union (EU) or EEA country, it is vital to know the procedures for managing your assets. Spanish legislation demands full transparency, placing a strong emphasis on the correct Declaration of funds.

Below, we offer you the precise and necessary information to ensure a legal and efficient transition.

1. Cash Funds: The € Limit

Regulatory compliance is strict regarding the physical movement of money.

Declaration Obligation. Any individual entering or leaving Spain with a sum of €10,000 or more must complete a Declaration. This applies to cash and other Means of Payment (bearer cheques, gold, etc.).

Form S1/S2. For movements within the EU/EEA, Form S1 or S2 is used. The Declaration must be filed prior to the start of the movement.

Consequences. Non-compliance is a serious offense. Fines can reach 50% of the value of the undeclared amount.

2. Transfers: The Safest Channel

For large sums, electronic transfer is the most recommended method due to its traceability.

SEPA Transfers do not require a Form S1 Declaration. These are standard electronic operations within the Eurozone. However, banks are obliged to notify the Administration of large operations.

Key Requirement. The fundamental requirement remains the confirmation of the source of funds.

3. Documentation for Fund Confirmation

To avoid inquiries from the Tax Agency (Hacienda), prepare the documentation that confirms the lawful origin of your assets:

Document Purpose Examples of Acceptable Proof
Identification Passport, recent proof of residence address.
Origin of Funds Declarations of income from the country of origin, pay slips, contracts for the sale of assets (real estate, securities).
Purpose of Movement Invoices or contracts for the purchase of property in Spain.
Prepare the documentation confirming the lawful origin. Tax Agency website.

4. Form 720: Annual Asset Declaration

For the tax resident of Spain, there is an information obligation regarding assets located abroad.

Threshold Value. Form 720 is a mandatory annual Declaration if your assets outside of Spain exceed €50,000 as of December 31st. It applies to accounts, real estate, and securities.

Maximum Risk. Non-compliance entails high fines, starting from €10,000 or €30,000. For further information, visit this page.

5. Final Considerations on Declaration

Double Taxation. Spain has agreements so that your income is not taxed twice. If the money has already been taxed, you must have the corresponding tax Declaration.

Investments. If you own marketable securities abroad, annually file the informative Form D6. To better understand tax residency, see our Guide to Legal Residence in Spain.

In conclusion: Opt for bank transfer and always guarantee the documentary confirmation of your funds for a successful Declaration and financial control.

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