Financial Education - The pros and cons of Bizum instant money and transfers

in hive-175254 •  3 months ago 

Cash has taken a back seat for many, as instant transfers from Bizum and other mobile apps are becoming more common. However, beware of certain money movements that can lead to fines.

Source ( minderest )

Although these transfers do not usually pose a problem, because they are small amounts, but if the amount or continuity draws the attention of the Treasury.

The administration may demand justification and, depending on the case, impose a financial penalty. The objective is to avoid fraud and money laundering.

In fact, financial institutions are obliged to collaborate with the Tax Agency to control illegal money exchanges. For this reason, banks provide the required information to the Treasury about a client who has had any suspicious movement, even if it is a transfer between family members.

Source ( skyewardtrust )

In the case of transfers between relatives, they must also be declared through the Inheritance and Gift Tax, following the percentages of each autonomous community. But if it exceeds this determined amount, it is sent to the public body in charge of tax collection.

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Most time I am always afraid of instant money because sometimes it can actually hanged