Spain’s New Financial Reporting Rules in 2026: What Self-Employed Workers and Tax Residents Need to Know

Spain is entering a new stage of financial transparency. A Royal Decree published in early 2025 will come into force on 01/01/2026, significantly expanding the tax authority’s visibility over both business and personal financial activity. If you are self-employed, running a company, or simply a tax resident in Spain, Hacienda will have more oversight than ever before.

This article breaks down the key measures, how they affect you, and the steps you should be taking to stay compliant and avoid unwanted attention.

1. Background: Why These Changes Are Happening

The legislation amends Spain’s anti fraud framework and targets the informal economy. The goal is to give Hacienda real time visibility over digital payment activity and to reduce gaps between what taxpayers declare and what they actually earn or spend.

This reform sits alongside a broader shift in Spanish compliance, including:

• tighter limits on cash usage

• new obligations for foreign crypto holders (Modelo 721)

• forthcoming mandatory digital invoicing (Verifactu)

Spain is clearly moving toward a system where undeclared income becomes nearly impossible.

2. Key Change for Businesses: Monthly Reporting of All Digital Transactions

Until now, banks were only obliged to report business transactions above 3,000 euros, and only once per year.

From January 2026:

The 3,000 euro threshold disappears entirely.

All digital business transactions processed via:

• card payment terminals

• Bizum

• similar digital payment channels

will be reported automatically every month.

Modelo 170 is the new reporting tool

Banks will file Modelo 170 on a monthly basis. The first filing will occur in February 2026 for January activity.

Business impact

Hacienda will now cross check:

• quarterly income declarations

• quarterly VAT returns

• annual summaries

• every digital payment reported by your bank

Any inconsistencies can trigger questions or deeper reviews.

For autónomos and SMEs, this means bookkeeping must be accurate, consistent, and backed by documentation.

3. Bizum Is Now Fully Traceable for Business Activity

Bizum has often existed in a grey zone, widely used by freelancers and small businesses, sometimes informally.

From 2026:

• All Bizum income used for business purposes will be reported.

• Bizum must be treated exactly like card terminal income.

• Failure to declare Bizum turnover is no longer realistically possible.

If a business has been using Bizum casually, that needs to change immediately.

4. New Reporting Obligations for Individuals

Even private individuals will face increased visibility. Banks will submit three additional informational returns:

Form 196

Reports:

• end-of-year balances

• all new bank accounts opened during the year

Form 181

Reports:

• mortgage balances

• loan balances

• any property transactions handled by the financial institution

Form 174

Triggered when more than 25,000 euros are spent on a single card during the tax year.

This gives Hacienda a clear view of high personal spending patterns and allows them to cross compare spending with declared income.

5. The 25,000 Euro Limit: Clarified

Key points:

• The limit applies per card, not per cardholder.

• Debit, credit, prepaid, and virtual cards all count.

• Revolut, Wise, N26, and similar EU fintech cards are included if the cardholder is tax resident in Spain.

• Multiple cards can be used without triggering reporting as long as no single card exceeds the limit.

• Activity triggering the threshold includes purchases, reloads, ATM withdrawals, and similar transactions.

What does not count

• Cash movements

• Direct debits

• Bank transfers

• Bizum between private individuals

• Non EU issued cards

However, Hacienda may still request information under CRS if a pattern looks suspicious.

6. No New Filing Obligations for the Individual, But Scrutiny Will Increase

Individuals do not need to submit any additional forms. Banks handle everything.

The practical risk is not the reporting itself but the cross matching.

Potential red flags include:

• Declaring low income while spending heavily on cards

• Receiving Bizum or digital income without declaring it

• Large purchases inconsistent with declared earnings

• Gaps between VAT or IRPF declarations and bank-reported income

Spain uses automated digital tools for these comparisons, meaning inconsistencies are flagged without human oversight.

7. Practical Preparation: What You Should Be Doing Now

A. Maintain rigorous documentation

Invoices, payroll, loan documents, receipts, rental agreements, donation documents, and anything explaining major movements.

B. Be careful with family transfers, cash deposits, and gifts

If you receive funds from relatives or deposit large cash amounts, consider formalising the transaction through a loan contract or donation agreement.

C. Treat Bizum as formal income

You must include Bizum activity in your turnover.

D. Review how you spread card spending

Some may intentionally divide spending across cards, but make sure your financial behaviour is logical and properly documented.

8. Additional Insight and Context You Should Know

Below are the extra considerations that strengthen the article and help readers plan strategically.

A. How this interacts with Verifactu (mandatory e-invoicing)

The new reporting rules will overlap with Verifactu, the upcoming electronic invoicing system that will become mandatory for most businesses.

When both systems operate together:

• Hacienda will see real time invoicing

• Hacienda will see real time digital payments

• Any mismatch between invoicing and collected payments will be instantly visible

This effectively eliminates the possibility of undeclared income. Businesses relying on partial reporting or informal methods must adapt now.

B. Impact on expats and foreign card users

Many foreign residents rely on non-Spanish cards for day-to-day spending, assuming this keeps them outside Spanish visibility.

However:

• Any EU fintech issuing cards to Spanish tax residents is within the scope of reporting.

• Only non EU cards fall outside the automatic system, but transactions can still be accessed under CRS if audit flags appear.

This means British, Irish, German, Dutch, French, Scandinavian, and most other European expats using fintech cards remain within the reporting system.

C. Structuring your financial life to avoid red flags

Practical steps:

• Separate personal and business accounts completely.

• Do not mix personal Bizum and business Bizum.

• Keep documentation for major purchases, especially high value electronics, vehicles, furniture, renovations, and travel.

• Review your spending patterns each year against your declared income.

• If receiving family support, gifts, or transfers, formalise them with simple documentation.

This reduces the chance of automated alerts.

D. Potential consequences of discrepancies

While the law itself does not introduce new penalties, discrepancies can lead to:

• Requests for clarification

• Requirement to justify movements with documentation

• Provisional assessments

• Full audits

• Recharacterisation of undeclared income

• Penalties and interest

The biggest shift is that Hacienda will now see inconsistencies immediately, rather than discovering them years later.

Conclusion

Spain is entering a new era of financial transparency. The removal of reporting thresholds, full visibility of Bizum, mandatory monthly bank reports, and the new 25,000 euro card expenditure rule create a far stricter environment for both businesses and tax residents.

Nothing here imposes new taxes, but it significantly improves Hacienda’s ability to cross check your income and spending.

For autónomos, company owners, digital nomads, and expats living in Spain, 2026 will require more structured financial habits, proper documentation, and proactive planning.