Bizum stands as one of Spain’s most widely used instant payment apps. Born in 2016 as a collaborative effort among numerous banks, it quickly positioned itself as a strong alternative to PayPal. Today, it counts more than 10 million users and has become especially popular with younger people who use it for paying during meals out and social events.
This system handles substantial sums each year, prompting the Treasury to step in with oversight to ensure that transfers are carried out legally. Like any financial movement, transfers require clear oversight from responsible authorities who assess legality and compliance. When standards aren’t met, sanctions and fines can follow.
Who hasn’t heard the joke, “Shall I pay you with Bizum?”
There are defined limits for Bizum transfers. The minimum is 50 cents, and the maximum per operation is 1,000 euros, with a monthly cap of 5,000 euros. These constraints intersect with tax obligations, because banks are required to provide the Tax Administration with data, reports, and supporting documents relevant to tax matters and to income from economic, professional, or financial dealings with others.
In practice, this means that keeping accurate records is essential. While many transfers remain routine, if a person crosses the 10,000-euro threshold across multiple accounts, it may be necessary to report this in the income tax return.
If the established procedures are not followed, individuals may face fines ranging from 600 euros to half of the amount transferred. In cases where the source of funds is unknown or the offense is serious, penalties can escalate to tens or even hundreds of thousands of euros, underscoring the importance of transparency and compliance in digital payments.