Withdrawing money from an ATM remains a common operation, despite the growth in payments by card, cell phone and digital wallets. Even so, in Spain, certain amounts of money may require the bank to identify the customer and, when the amount exceeds 3,000 euros, include the transaction in the informative declaration sent to the Spanish Tax Agency.
The rule does not mean that it is prohibited to withdraw money from your own account. The Banco de España clarifies that, in relations with the bank, cash can be used without a general limit and that institutions must deliver the requested amount, as long as there is an available balance. However, if the amount is large, the bank may ask for advance notice to ensure it has enough money on hand. 
The essential point is in controlling cash operations. Spanish authorities maintain identification and communication rules to prevent tax fraud and money laundering.
Bank must identify from 1,000 euros
According to the Bank of Spain, the institution may require identification when the customer makes cash transactions and must do so when the cash transaction is equal to or greater than 1,000 euros. This obligation also results from article 4 of Royal Decree 304/2014, which regulates Law 10/2010 on the prevention of money laundering and terrorist financing.
This obligation applies to cash transactions carried out with financial institutions and seeks to guarantee the traceability of movements. At an ATM, the customer is normally already identified through the card and access codes, but this does not prevent the financial entity from applying additional controls when the value, frequency or profile of the transaction justify it.
In practice, the customer may have to present identification or provide clarification, especially when the amount is large or when the entity detects signs of a suspicious transaction.
Transactions exceeding 3,000 euros are reported
In addition to identification, there is a tax reporting obligation. In accordance with article 38 of Royal Decree 1,065/2007 and , credit entities and other financial entities must annually declare the impositions, dispositions of funds and cash charges when the value of the operation exceeds 3,000 euros.
This means that cash withdrawals or deposits above this amount must be included in the annual information statement of financial entities, except in cases where the operation must already be communicated by another means provided for by law.
Communication does not mean that the customer is automatically committing an infraction. It just means that the transaction is recorded and can be analyzed if there are doubts about the origin or destination of the money.
There is no prohibition, but there may be control
The Bank of Spain also clarifies that there is no general restriction that prevents customers from withdrawing money from their account. If there is a balance, the bank must make the requested amount available.
Still, for large amounts, it may be necessary to notify the agency in advance. The Bank of Spain itself says that, although it depends on each entity, it is customary to notify the bank when the amount to be withdrawn exceeds 3,000 euros, normally one or two days in advance. This practice is to ensure that the counter has enough money to fulfill the order.
For security and internal management reasons, banks can also set daily limits for ATM withdrawals. These limits vary depending on the card, account and policy of each institution.
And in Portugal?
In Portugal, the issue is different. The best-known limit does not apply to simple cash withdrawals, but to cash payments.
ASAE reminds you that, under article 63-E of the General Tax Law, it is prohibited to pay or receive cash in transactions of any nature with values equal to or greater than 3,000 euros. For IRC taxpayers and IRS taxpayers with organized accounting, payments relating to invoices or equivalent documents with a value equal to or greater than 1,000 euros must be made by means that allows the recipient to be identified, such as bank transfer, certified check or direct debit. 
For individuals not resident in Portugal and who do not act as entrepreneurs or traders, the limit is 10,000 euros. In practice, this corresponds to cash payments of up to R$9,999.99. 
Multibanco has its own limits
In Portugal, withdrawals from ATMs have operational limits defined by the system and banking institutions. The MULTIBANCO network indicates that it allows withdrawals of up to 400 euros per day, so higher amounts must normally be withdrawn at the counter. 
Even when withdrawals are permitted, banks can apply control and identification procedures when there are signs of risk or suspicions related to money laundering or terrorist financing. Banco de Portugal is the competent authority to verify compliance with these duties by financial entities subject to its supervision, within the scope of Law No. 83/2017. 
Therefore, anyone who needs to withdraw a large amount should contact the bank in advance, confirm the applicable limits and ask for proof of the transaction.
Always keep your receipt
Whenever you withdraw or deposit a large amount in cash, it is recommended to keep proof of it. This document can be useful if it is necessary to explain the origin, destination or reason for the operation.
In Spain, cash transactions worth 1,000 euros or more require customer identification and amounts greater than 3,000 euros are included in the tax communications of financial entities. In Portugal, the main focus is on limits to cash payments and the control duties of financial institutions.
The rule of thumb is simple: withdrawing money from your own account is not prohibited, but large cash movements may be recorded, reported or subject to additional questions.
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