A man's true state of power and riches is to be in himself.


How much money can you have at home?

Saving money at home seems like a habit of the past or of our grandparents. Any safe place became the ideal hiding place for bills and coins. See

It is not a practice of yesteryear, much less imaginary. There are still people who maintain that popular tradition. For many, hiding money from curious and thieves is not only part of a custom, but also a way to avoid financial or other crises . Therefore, they prefer not to take their money to the bank.

Is this practice really legal?


It is a valid question that deserves our attention. After all, we are free to decide what is best for us. But is having money at home really legal? If so, how much money can we save? And more importantly: what would happen if the Treasury finds out? What tax implications would we have? Apart from tax risks, what other problems can affect the money saved at home?

The answer to the first question is yes. There is nothing illegal if we want to keep part of our money stored at home, as long as we can justify the legal provenance of those resources. On the other hand, we should know that, if we keep money at home, we not only have to know the origin of the amount, but also be able to confirm it in front of any institution that demands it.

While there are advantages of saving part or all of the money we want in our home, it is important that we know that there are some inconveniences in doing so. One of the most notable are the fiscal dangers that involve organizations such as the Treasury. Of course, we could affirm in our defense that there is more danger to our financial resources if we take it to the bank.

It is no secret that bankruptcy cases or the famous scams of the preferred ones that have made even the most risky doubt. Therefore, many doubt the trust or good faith of banks. And looking at it from this point of view, it seems reasonable and safer to leave the money stored at home. However, good intentions can also involve risks. Before mentioning some of the possible dangers, let’s answer the second question.

 Is there a limit on the amount of money we can have at home?

What is the limit of money we can have at home?

What is the limit of money we can have at home?

There is no law that prohibits having money at home. Nor is there any legislation that limits the amount of money we decide to keep, whether on a mattress, behind the boxes, in a closet, in a safe or in any hiding place that comes to mind. The imagination is free.

The only requirement that must be met is that the origin of the money be lawful. So it is clear that no entity will prevent withdrawing funds from an account to take them home. But, there is always one, if we decide on the method of hiding at home, the money we have can only be spent on small purchases occasionally. If this is the use we will give money, there is no reason to worry.

What tax implications will we have if the Treasury intervenes?

What tax implications will we have if the Treasury intervenes?

The same does not happen when expenses are frequent and the sums of purchases are high . When these types of purchases occur, the Good Finance alarm goes on and we are not surprised that they can visit us to ask for explanations. In this sense, the Treasury reports on the fiscal risk of saving money at home, not for the fact of taking out a certain amount from the bank, rather by how and when it is re-entered.

For example, if we withdraw 10,000 euros from the bank, and after a while we re-enter the same amount or an equivalent, it would not raise suspicions. However, if the money remains longer than normal outside bank supervision and reappears, this would raise doubts about the origin of the Administration and, consequently, demand taxes on it, as unjustified capital gains.

If we cannot prove that it is the same money that we get in its opportunity, the tax or penalty could be up to 52%. What can we do to avoid going through this awkward moment? If we are going to withdraw a significant amount of money, the most sensible thing is to go before a notary to justify it and thus avoid headaches if the Treasury or the bank have doubts.

What other problems can affect the money stored at home?

What other problems can affect the money stored at home?

The tax implications of the Treasury are not the only inconveniences that may arise. There are other dangers that could also occur, so we cannot rule them out. Let’s see four of them:

  • Stole. It is a real and more frequent danger than we can imagine. Although it seems a lie thieves are cunning and know that many people keep not only money at home but also jewelry or other valuables. If something like this happens, it would put us at a true crossroads. On the one hand, see the savings disappear and on the other, having to prove to the Treasury the origin of the subtracted amount.
  • Fires. The same fate would be for those who keep money at home if, unfortunately, a large-scale fire occurs. There is no water that prevents the money from burning or justifying the lost assets to the Treasury.
  • Death. The truth is that nobody knows what will be of his life tomorrow. It is a reality that cannot be avoided. So having money stored at home and that nobody knows, can represent the loss of those resources in case of death. Yes, some will look on the mattress, but if the hiding place is more ingenious, that money will most likely be lost.
  • Devaluation. The rise in prices and wages or bad economic measures can increase inflation. In turn, this will affect the value of money in the future. What we can buy with a certain amount we can no longer do when the Consumer Price Index (CPI) falls.

In short, these are just some of the dangers of having money at home. In other words, it seems that we are against the wall and no way out. But it’s not like that. The most convenient thing, therefore, if we no longer trust banks, is to save a portion of money at home to pay the common expenses of six months and the rest, if we find it convenient, have it in a bank safe deposit box. These are risks that we must assume responsibly.

Selina Bidwell

Back to top