The Bank of Spain issued a notable update regarding the 500 euro banknote. These notes are becoming increasingly rare across Europe. In practice, they are increasingly linked to illicit activity, and authorities are tracing and gradually removing them from circulation, with certain exceptions in place.
Today, only a narrow segment of 500 euro notes remains in circulation. In 2019, production of these notes stopped following a recommendation from the European Central Bank. A common association with fraudulent activity and money laundering helped drive this decision.
Banknotes and coins with expiration dates: cash usage has almost vanished in this country
It is important to note that only specific industries and exchanges are permitted to handle these notes in limited circumstances. These three contexts are often cited as exceptions to broad restrictions:
Do you keep these bills in a drawer? They could be worth a fortune
Monitored by the Tax Administration
The goal is to curb informal economic activity. The Tax Administration oversees certain cash transactions and can request information or justification for deposits exceeding 3,000 euros. It also oversees cash transactions above 500 euros as part of ongoing monitoring to ensure compliance.
Archive – Coins and notes EUROPEAN PRESS – ARCHIVE
By late 2020, the government approved new rules to counter fraud and limit cash payments. Law No. 11/2021, enacted on July 9, sets a maximum cash payment limit of 1,000 euros. For purchases above that threshold, customers must choose an alternative electronic payment method.
Even though the European Central Bank stated that these banknotes would retain their value indefinitely and could be exchanged at national central banks of the euro area, they are rarely found in shops today.