Cash Payment Restrictions

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In the BOE from the 10th July of 2021, law 11/2021, of July 9, 2021, on measures to prevent and combat tax fraud, transposing Directive (EU) 2016/1164 of the council, of July 12, 2016, it’s been established tax avoidance practices that directly affect the functioning of the internal market.

The aforementioned norm modifies up to 19 laws, among which are the General Tax Law and those of the main taxes: IRPF, Companies, VAT, Special Taxes, Non-Resident Income, Heritage, Inheritance and Donations and Tax on Patrimonial Transfers and Acts Documented Legal.

It also refers to the lowering of the limit of payments in cash, in operations in which a businessperson or professional (in this case our hotel company) is involved, from €2,500 to €999.99, and it is also mandatory that any payment for a service equal to or greater than said 1,000 euros is always and exclusively carried out under a banking modality.

To sum up:

  • Reservations of an amount UP TO €999.99, may be paid totally or partially in cash.

  • Reservations for an amount EQUAL or GREATER than €1,000, any payment (total or partial) must be made by bank.

For these purposes, we are obliged to inform all our clients of the validity and application of this measure immediately, regretting the inconveniences that it may cause, and in order that they make the appropriate provisions for the correct management of their payments. based on this restriction both on account deliveries and pending reservation payments upon arrival at the hotel.

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In 2023, Holiday Magic Hotel, S.A. received a grant from Turisme Comunitat Valenciana to carry out actions related to boosting tourism competitiveness.