The European Union (EU) is reinforcing control over cash payments to combat practices such as capital bleaching, tax fraud and terrorism financing. With the new regulation (EU) 2024/1624, it is intended to standardize the maximum cash payment limits in all Member States by 2027.
Cash payments will have a new limit
This European regulation sets a common ceiling of 10,000 euros for cash payments. Above this amount, it will be mandatory to use payment methods to track the operation, such as bank transfers or card payments, refers to Marketeer.
Despite this uniformity at the European level, each Member State may choose to apply more restrictive limits, as long as they do not exceed 10,000 euros established by the EU.
This flexibility allows you to adjust the rules to the economic and tax realities of each country.
Objective is to avoid illicit operations
According to the official statement, cited by the same source, the measure aims to reduce the risks associated with high cash payments, especially in contexts where there is suspected fraud, bleaching or financing of illegal activities.
The directive in force since 2015 already reinforces this guidance, considering as entities required all persons or companies that make or receive cash payments above 10,000 euros.
These limits also seek to discourage the use of large cash amounts in sectors such as luxury trade, where operations can escape tax and judicial control.
Limits already applicable in Portugal
In Portugal, national legislation defines tighter limits. In the case of cash transactions between residents, it is not allowed to pay or receive amounts equal to or more than 3,000 euros.
This limit goes down to 1,000 euros when it involves companies or professionals with organized accounting, including IRC and IRS passive subjects under these conditions.
For singular people who do not reside in Portugal and do not act as entrepreneurs or traders, it is allowed to pay in cash up to 10,000 euros, according to the same source.
This exception applies, for example, to foreign tourists or citizens who visit the country, provided that the operation does not involve regular commercial activity.
Also limit for state payments
In addition to the applicable limits between private or companies, state payments have specific rules. It is prohibited to settle taxes in cash when the value exceeds 500 euros. This measure ensures greater security and transparency in the relationship between taxpayers and tax administration.
Border reinforced control
The new European regulation also includes standards for the transportation of money inside and outside the EU. Travelers entering or leaving the community space with amounts equal to or greater than 10,000 euros in cash will have to declare this amount to the competent authorities, the source mentioned above states.
This control applies to trips by air, terrestrial or maritime and aims to make it difficult to transport money from illegal activities. Those who do not declare these amounts may see the money seized, besides being the target of administrative or criminal proceedings, depending on the situation.
Toward greater transparency
With these measures, the EU intends to reinforce the fight against economic and financial crimes, promoting safer and more transparent practices in monetary transactions.
By limiting the use of physical money in large operations, authorities seek to cut traditional illicit flow running routes.
In the coming years, Member States will have to adapt their national legislation to this new European framework, with deadlines until 2027 to implement these changes, according to.
Also know, as a curiosity, that in countries such as Germany the maximum payment limit in cash is 10,000 euros, but in Italy this amount goes down to only 5,000 euros.
Also read:
