What will the Treasury control of Bizum from January 1st?

BarcelonaStarting January 1st, the Spanish Tax Agency will intensify its monitoring of Bizum transactions made by professionals and businesses, as well as all card transactions exceeding €25,000 annually. These measures were outlined in Royal Decree 253/2025 of April 1st. Financial institutions (banks, payment institutions, and electronic money providers) will now be required to report all such transactions to the Tax Agency each month.

The Tax Agency's primary objective is to curb fraud. In the case of Bizum and other new payment systems, the Tax Agency aims to detect fraud perpetrated through the concealment of undeclared economic activities. This explains why the tax authorities are focusing on these types of transactions and on operations carried out by business owners and entrepreneurs. Transactions made through this channel between individuals, such as friends or family, are not affected by this increased scrutiny of this free mobile payment service that allows users to send and receive money instantly using only the recipient's phone number. For some time now, rumors and alleged information have been circulating on social media claiming that individuals will also have to report these types of transactions to the Tax Agency, given their current widespread use. This is false, and the Tax Agency has been forced to issue a statement on the matter. Banks will only have to report these types of transactions carried out by professionals and companies to the Tax Agency, and only in aggregate, not on a transaction-by-transaction basis.

"In recent months, content has been published online warning of a supposed impact on citizens from new reporting requirements imposed by the Tax Agency regarding instant transfer payments (Bizum or equivalent systems). This information is incorrect, as the Ministry has confirmed," addressing the concerns of many citizens who regularly use Bizum. More than 1 billion transactions are carried out annually through this system in Spain, which is affiliated with 38 banks.

Annual spending limit of €25,000 with cards

What will also affect individuals, although the reporting obligation falls on financial institutions, concerns payments made with all types of cards, whether physical or virtual, and whether for cash, debit, deferred debit, credit, or electronic money, in any currency, according to the regulation. Banks will have to report all transactions (charges and credits) exceeding €25,000 annually. In these cases, financial and payment institutions will have to report not only charges and credits, but also top-ups, cash withdrawals, and payments at businesses. With these measures, the Tax Agency aims to obtain more detailed data to detect potential irregularities, improve the efficiency of tax collection, and strengthen the fight against fraud on a larger scale. The objective of the measure is for the Tax Agency to have all the information on highly active cards and, where appropriate, be able to cross-reference data to detect potential fraud.

In the case of Bizum and similar systems, the data that financial institutions must submit monthly includes the identification of businesses or professionals registered with the Bizum payment management system or equivalent systems; the number of merchants with which they operate, the number of point-of-sale terminals, the monthly amount invoiced via Bizum, and the identification of the bank or payment accounts through which businesses and professionals receive payments. The reporting of information on accounts and payment systems, previously annual, will now be monthly, meaning institutions must submit their first declaration by February 1, 2026.

This increased oversight, included in the Royal Decree approved in April, modifies articles of two regulations: the Personal Income Tax (IRPF) Regulation and the Personal Income Tax (IRPF) Regulation. The regulation affects all entities operating in Spain, including foreign entities, even those without a physical establishment in the country.