Starting in 2026, the Spanish Tax Office will enforce updated financial reporting obligations. These changes affect all self-employed individuals and businesses and will also impact banks and payment entities.
The objective of the reform (Order HAC/747/2025 and Royal Decree 253/2025) is to provide more timely and detailed financial information, improving transparency, monitoring, and the ability to verify declared income.
Important Changes
Monthly Reporting Instead of Annual Reporting
Previously, banks and payment entities reported most financial information once a year. From 2026, they must report all relevant account information and professional payments monthly. This gives the Tax Office real-time insight into business income and transactions.
Removal of Reporting Thresholds
Previously, only payments above certain amounts were reported. From 2026, all payments received in the course of a professional or business activity will be reported, regardless of size.
Expanded Coverage for Card and Mobile Payments, Including Bizum
Every professional transaction via cards, POS terminals, or mobile payment apps—such as Bizum, Google Pay, Apple Pay, etc.—used for business purposes—will now be reported.
Important clarification for private individuals:
Only payments received in the course of a professional or business activity are reported. Personal transfers between friends or family, such as sending money via Bizum for a birthday gift or shared expenses, are not included in these reports. This distinction ensures that individuals understand their everyday personal payments remain private, while only professional transactions are monitored for tax purposes.
Who submits each form?
- Form 196: submitted by banks and financial institutions, reporting account ownership and transaction data.
- Form 170: submitted by payment entities and platforms, reporting professional payments received via cards, POS, or mobile apps.
Self-employed individuals and businesses do not submit these forms themselves, but they are the subjects of the reports and must ensure accounting records reconcile with the data submitted to the Tax Office.
What Happens If a Form Is Not Submitted?
If a bank or payment entity fails to submit a form, submits it late, or provides incorrect data, it may face penalties under Spanish tax law.
Indirectly, this can affect self-employed individuals and businesses:
- The Tax Office may receive data late or with errors, creating mismatches with declared income.
- Authorities may request clarifications or additional documentation if discrepancies are found.
- While self-employed individuals and businesses are not directly penalised for these forms, inconsistencies could increase the risk of audit or tax adjustments.
Practical Advice for Businesses & Self-employees
Even though businesses and self-employed individuals are not required to submit Forms 196 or 170 themselves, it is essential to ensure that all professional income is properly recorded and reconciled with bank and payment records. Maintaining up-to-date accounting will help prevent discrepancies with the information the Tax Agency receives from banks and payment platforms.
It is also crucial to keep invoices, receipts, and supporting documentation organised and accurate. This includes every payment received via card, POS, or mobile app such as Bizum, Google Pay, or Apple Pay for business purposes. Proper documentation ensures that any queries from the Tax Agency can be addressed quickly and efficiently.
Separating personal and professional transactions has become even more important. Using dedicated business accounts and payment methods for professional income helps avoid confusion and ensures that only relevant transactions are reflected in your records.
Finally, consider regularly reconciling your accounts each month to match payments received with invoices issued. This practice will not only make it easier to detect errors early, but also provide peace of mind knowing that your records align with the reports submitted to the Tax Office.
Conclusion
The financial reporting changes taking effect in Spain in 2026 represent a major step toward greater transparency and traceability of professional income. Businesses and self-employed individuals will no longer need to worry about submitting these specific forms themselves, but it will be essential to maintain accurate, up-to-date records of all professional transactions.
By keeping accounts reconciled, invoices and receipts organised, and personal and professional transactions separate, businesses can minimise the risk of discrepancies with the Tax Office’s records and respond quickly to any queries.
It is also important to remember that personal, non-professional payments between individuals are not included in these reports, so everyday transfers via Bizum or other mobile apps remain private.
Overall, 2026 will require careful financial management and attention to detail, but with good record-keeping practices, businesses and freelancers can navigate the new reporting obligations confidently and efficiently.
