Spain is shaking up the rules for credit and debit card payments, introducing new measures to track big transactions.

Starting in 2025, banks and payment platforms like PayPal and Bizum will need to report cardholders spending over €25,000 annually. The goal? To tackle fraud and bring the country’s tax system in line with the digital age.

Breaking down the new card payment rules: What they mean for you
For businesses and individuals, the changes are straightforward but significant:

Annual Spending Reports: If you spend more than €25,000 on your card in a year, your bank will report those transactions to the Tax Agency.
Monthly Business Updates: Freelancers and business owners will face stricter monitoring, with payment platforms required to send monthly reports on card and digital payments linked to business activity.
The Spanish government says this is about transparency and fairness, ensuring everyone pays their share while reducing fraud.

Why these new regulations are happening now
With digital payments growing rapidly, Spain’s tax authorities are finding it harder to keep track of large financial flows. These new rules aim to close the gaps, but they’re also part of a broader effort to modernise Spain’s economy and ensure fairer taxation.

However, not everyone is thrilled. Small businesses worry the extra paperwork could become a burden. Critics argue the timing isn’t ideal, especially as many companies are still recovering from the economic strain of recent years.

The rules are set to take effect in 2025, with the first reports due in 2026. This gives businesses and financial institutions time to prepare, though many are already calling for clarity on how these measures will be enforced.

What steps should you take to prepare?
For individuals, it’s a reminder to keep financial records organised, especially if you tend to make large purchases. For business owners, this is the perfect time to review your reporting systems and ensure everything is ready to meet the new requirements.

While the new measures might feel like a hassle, they’re part of a global trend toward better regulation in a digital world. By shining a light on high-value transactions, Spain hopes to build a fairer system that benefits everyone.