Rents, properties, salaries, account balances… We know there is a lot of misinformation and confusion about your Bizum remittances and collections and whether they are taxed or not: what happens with Bizum and the TreasuryDo I have to declare Bizum to the IRS? How do I have to declare Bizum to the IRS? Bizum to the Treasury?
As the Black Eyed Peas and Shakira would say: Don’t you wooooorryy. ♫.
If you’ve been wondering what to do with your Bizum in Hacienda, you’re in the right place. Keep reading to find out everything related to Hacienda and Bizum.
In recent years, Bizum has established itself as one of the most widely used payment platforms in Spain, both by individuals and by professionals and companies. Its ease of use and the immediacy of transfers have led more and more businesses and freelancers to incorporate it as a regular payment method.
The use of Bizum as a means of collection for income from professional activities should be treated for tax purposes in the same way as income received by other traditional means, such as cash, bank transfers or card payments.
The obligation or not to declare income depends on its nature (e.g. reimbursement of expenses, provision of services, sale of goods or donation) and not on the means used to make such collection. In other words, income through Bizum is subject to the same conditions as income received by any other means, such as cash, transfer or card.
Thus, the tax treatment will be different depending on the type of payee:
Whether they are companies or other types of entities. In this case, the income received through Bizum is generally due to the sale of goods or the provision of services; for this reason, it must be included in the accounting of the entity and be subject to corporate income tax.
Likewise, regardless of the means of payment, the general rules regarding VAT and other invoicing obligations apply. For example, it is essential to issue the corresponding invoice or receipt and keep the proof of payment by Bizum as documentary support.
As in the previous case, if the income received by Bizum derives from the economic activity (payments for the delivery of goods or provision of services), it must be included in the results of the activity, the income books and the invoices issued.
This income is subject to Personal Income Tax (IRPF), under the heading of income from economic activities, together with the rest of the income received by any means of payment. In addition, if the operation is subject to VAT, this must be included in the amount and declared in the quarterly and annual forms and the corresponding invoice or receipt must be issued.
In this case, it is essential to identify the specific cause of each payment received via Bizum. As a general rule, these are considered to be routine day-to-day transactions, account adjustments and reimbursement of joint expenses -for example, dinners, trips or purchases made jointly-, which do not generate income and whose amount does not imply a taxable increase in assets, so they should not be declared.
Although some press reports have indicated that income received by Bizum in excess of 10,000 euros per year must be declared for tax purposes, this amount is only a reference threshold used in areas such as the use of cash and the prevention of money laundering. Neither the General Tax Law nor its regulations make specific mention of this threshold. Therefore, as a general rule, payments between individuals, for those usual day-to-day movements, should not be declared and are not subject to limits (beyond those of the Bizum service or those established by banks).
On the other hand, if the income constitutes the consideration for a sale or service rendering transaction (as would be the case of a rental) or a donation between individuals, the tax treatment would be the same as for these transactions, as is the case with other means of payment, whether cash or transfer.
As an example:
– If there is a reimbursement of a common expense (e.g., common expenses of a trip between friends or family members), there would be no tax consequences.
– In the case of a donation between individuals, the person receiving the money may be subject to Inheritance and Gift Tax and must file the corresponding self-assessment.
– If the income corresponds to the payment of a rent, it will be considered as income from real estate capital for the lessor and must be declared in his/her personal income tax.
– If the amount received is for the sale of a good (for example, the sale of a car or a second-hand object), it will be considered a capital gain and must be included in the income tax return. In these cases, the Transfer Tax (Impuesto sobre Transmisiones Patrimoniales Onerosas), which is applied according to the regulations of each autonomous community, could also be applicable.
As mentioned above, the treatment of these payments received by Bizum is the same as if they had been made by any other means of payment.
It is important to note that the limits on the amount and number of transactions established by Bizum (e.g. €1,000 per transfer, €2,000 per day or €5,000 per month), for security reasons, apply only to payments between individuals and donations. In addition, banks may set their own limits within those established by Bizum.
For e-commerce, professionals and companies, Bizum does not impose its own limits, neither on the persons making the payments nor on the recipients of the payments. However, banks may establish specific conditions depending on their internal policy and the profile of each customer, especially buyers, as is the case with other payment instruments. It is therefore advisable to consult with the bank to find out the specific limits applicable to each case.
With the entry into force of Royal Decree 253/2025, as of January 1, 2026, financial institutions will have to report, on a monthly basis, to the Tax Agency, all cash collections that companies and professionals receive by any means: cash, bank transfer, card or Bizum, as well as any other means of payment associated with cell phone numbers (as established in the rule). This rule does not apply to the case of payments between individuals.
In addition, the regulation states two specific cases for payments or cash withdrawals made by individuals, which do not affect those made with Bizum:
– Financial institutions must report, on an annual basis, payments made with cards whose total amount of expenses and credits has exceeded 25,000 euros.
– Financial institutions must report cash withdrawals made by individuals, which exceed 3,000 euros.
In short, a quick analysis of the nature of the income is enough to determine what the tax liability is. In the case of companies or professionals, it is necessary to record and account for all income received, for their economic activity, through Bizum or any other collection method.
