Making a Bizum payment to a family member or friend is already quick and common in Spain, but from 1 January 2026, Spanish banks and payment providers will no longer have a minimum threshold (previously €3,000) for card payments that must be reported to the Tax Agency (Agencia Tributaria). This means that the Tax Agency will focus less on large sums and more on repeated transactions, affecting thousands of small payments by both self-employed people and private residents that previously went unnoticed, as established in Royal Decree 253/2025 of 1 April.
Unlike cash, Bizum leaves a digital trace. Traditionally, many expat parents in Spain have helped their children or relatives pay rent or a mortgage in cash, avoiding any paper trail. José María Salcedo, managing partner at Salcedo Tax Litigation, advises that if the Tax Agency queries these payments, it’s essential to clearly justify the purpose of any regular transfers.
It’s important to note that maintenance payments between family members are not considered gifts. These payments can cover food, housing, medical care, or education (even after reaching adulthood) and are a legal obligation of parents towards their children. They are not subject to tax, according to Spanish tax adviser Oscar Masó.
If no explanation is provided, the Tax Agency may consider the payments as gifts from parents to children. In that case, the relevant autonomous community (unless a party is non-resident) could require a Donations Tax settlement. Salcedo notes: “Gifts from parents to children often qualify for tax relief in many regions of Spain, but this usually requires declaring the gift on time and through a public deed. If the Tax Agency discovers these payments and classifies them as gifts, these benefits may no longer apply. Rules vary by autonomous community, so it’s essential to check the specific regulations and conditions for each region.”
Another option for helping a child pay their mortgage or rent without triggering a Tax Agency investigation is to formalise a private loan. This can be interest-free if explicitly stated in the contract (signing is recommended). Repayment terms must be clear and provable.
It’s best to repay such a loan by bank transfer to create a clear record. “Repaying in cash is not recommended, even if receipts are issued for each payment. This loan is subject to the ITP (Transfer Tax) but exempt from income taxation.” The loan can be documented privately; notarisation is not required. If repayment cannot be demonstrated, the Tax Agency could classify the transfers as gifts.
For the parent lending the money, there is no income tax liability in either scenario. Tax would only apply if the loan carries interest, in which case the interest received must be declared as income from capital on the annual Spanish tax return.
Bizum will no longer be invisible to Spanish tax authorities: what changes from 1 January 2026
From 1 January 2026, a major change will come into effect in the way Spanish tax authorities (Hacienda) monitor electronic payments, including Bizum, bank transfers, and card transactions. Until now, Hacienda focused mainly on large sums, but the new rules will target repeated payments, meaning thousands of small transactions that previously went under the radar could now be scrutinised.