“Financial Big Brother”: what's changing and why

on April 1, 2025, King's Decree 253/2025, which amends regulations on tax management and control, was published in the Official Gazette (BOE). It aims to strengthen the information obligations of banks, payment institutions and electronic money issuers. The new regulations will take effect from January 1, 2026.

In practice, this means the creation of a kind of “Financial Big Brother” - a system designed to allow the Treasury to track the flow of money in bank accounts, payment cards, mobile platforms and electronic accounts. The goal: to reduce the shadow economy, tax evasion and operations outside the official circuit.

Key changes

1. More frequent reporting and no quota thresholds

Banks and other financial institutions will have to submit data monthly, rather than once a year as before. Also disappearing are the amount thresholds from which transactions were reported - many operations (such as card payments by businesses) will be reported regardless of the amount.

2. Scope of institutions covered

The new regulations apply not only to traditional banks, but also to fintechs, payment institutions, e-money issuers and even foreign companies operating in Spain. This includes all types of accounts - whether they are bank accounts, payment accounts, time deposits or digital wallets.

3. More detailed data

Reported will be:

• identification data of account holders, beneficial owners and authorized persons,
• balance as of December 31, the average balance of the last quarter, the total value of receipts and disbursements in the year,
• information on all card operations (physical and virtual, credit and debit).

4. Card, phone and Bizum payments under the magnifying glass

Every payment made by an entrepreneur or self-employed person - by card, phone or mobile app - will be reported to the tax. The €3,000 per year threshold that previously limited the reporting obligation has been abolished.

5. Transfers, loans and cash also monitored

The reporting obligation will also cover loans, deposits, borrowings and cash operations in excess of certain limits.

Whom it concerns

Individuals

For the average citizen, the change will not be felt if all transactions are legitimate. However, regular transfers between friends, reimbursements or “small favors” may draw the attention of officials if they occur frequently or for larger amounts.

Self-employed and entrepreneurs

This is the group most vulnerable to audits. Data from bank accounts will be compared with tax returns. Discrepancies between receipts and income can result in calls for clarification or sanctions.

Financial institutions and fintechs

Banks, payment platforms, mobile apps and neobanks will have to implement new reporting systems and comply with the Tax Agency's requirements.

Examples from life

• If your friends reimburse you through Bizum for a shared night out or dinner, and such transfers occur frequently, the tax office may ask for an explanation.
• If you are self-employed and declare a low income, but your account shows regular high receipts, the system will automatically detect this.
• For virtual cards exceeding €25,000 in annual turnover, the data will be transferred to the tax authority.

Purpose of reform

• Combating tax fraud and hidden income.
• Adapting regulations to the reality of digital payments - Bizum, neobanks, mobile apps.
• Compliance with anti-money laundering and counter-terrorist financing regulations.

Risks and recommendations

Risks:

• Increased number of clarification calls due to detection of “non-compliant” flows.
• Ability to cover private transactions between individuals.
• Sanctions for the self-employed who do not have consistent records of income and expenses.

Best practices:

• Document all transfers and payments - even between friends.
• Ensure consistency between account receipts and declared income.
• Consult a tax advisor before the regulations take effect.
• Avoid “mixing” private and corporate accounts.
• Make sure that the payment platforms you use comply with Spanish requirements.

Decree 253/2025 introduces one of the largest reforms in the history of Spanish fiscal supervision. It increases the frequency of reporting, removes quota limits and covers all types of financial institutions. Starting in 2026, the Spanish Fiscal Agency will have a complete picture of the financial flows of citizens, companies and entrepreneurs.

For honest taxpayers, the change can only mean greater transparency. For those who hide income or use informal accounting - the beginning of the end of “invisible money.”