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I have been told that Spain has a big black market economy, it is part of ordinary life there to pay for say a car with "black money".

However I think even there the idea of setting up a tech company with more than a million euros of illegal currency that can't appear on your books might be a little challenging.

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Where do you think the term"Spanish practices" came from :-) of course the politically correct term is now "quaint andalusian customs"

When I worked for a big telecom JV it was an open secret that everyone thought that Telephonicas dominance in South America was not all above board

I'm an spaniard living in Spain. Yes, there is too much black market economy here, but I've never seen it with cars. People here usually don't pay VAT to the plumber, the electrician, etc.

EDIT: I'm talking about new cars. I guess the used car market is mostly black, but I don't know as I never bought or sold a used car.

On used cars is mixed. You need to pay taxes based on sell value, with a lower limit based on the blue book equivalent we have here. People just declare a bit less than blue book value and pay the minimum.

But yes, most of Spain's submerged economy is via services without invoices (no VAT, no IRPF).

yes I meant used cars. I'm the sort of cheap-ass who wouldn't even consider buying a car new.

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