Bizum is one of the most popular instant payment apps in Spain. Born as a competitor to PayPal in 2016, backed by many banks, it is used by more than 10 million people and is especially popular among young people for settling the check when dining out.
This system moves millions of euros each year, which is why tax authorities have stepped in to ensure that money transfers are conducted legally. Like any financial movement, it requires oversight by the administration to determine legitimacy. If standards aren’t met, penalties can follow and fines must be paid.
Who hasn’t heard someone say: “Can you Bizum me?”
TYou should know that the minimum amount to send is 50 cents, and the maximum is 1,000 euros, with a monthly cap of 5,000 euros. This is where complications can arise, because under the General Tax Law, banks are obligated to provide the tax authority with various types of data, records, and receipts with tax relevance related to the fulfillment of their own tax obligations or those derived from their financial, professional, or economic relationships with other individuals.
In practice, this scenario is unlikely, but if a person transfers sums above 10,000 euros across multiple accounts, those movements must be disclosed in their income tax return.
If the procedures of the tax model are not followed, those involved face penalties from tax authorities ranging from 600 euros up to 50% of the amount sent. In cases where the crime is more serious and the origin of the money cannot be traced, penalties can reach 60,000 euros for lighter offenses and up to 150,000 euros for the most serious cases.