The European Union (EU) is preparing to tighten the rules on the use of cash, imposing more rigorous limits on cash transactions with the objective of locking the bleaching of capital, tax fraud and the financing of illicit activities. With regulation (EU) 2024/1624, a common rule for all Member States will be created by 2027, defining maximum cash payments and reinforcing control mechanisms.
Cash payments with European ceiling
The new regulation defines a maximum limit of 10,000 euros for any cash payment. Above this amount, it is mandatory to resort to traceable methods such as bank transfers or card payments. This measure, uniformly applied in the EU, does not prevent each country from imposing even more restrictive limits, as long as they do not exceed the value stipulated at the European level, according to Marketeer.
This flexibility allows the rules to be adapted to the economic and tax reality of each Member State, offering margin for additional measures to combat illicit operations.
According to the official statement, the goal is to reduce the risk of high cash transactions that may be associated with fraud, bleaching or financing of criminal activities. Since 2015, European legislation has already establishes that any person or entity that makes or receives payments over 10,000 euros is subject to added legal obligations, namely in the field of identification and reporting.
At the same time, the measure seeks to wage the excessive use of physical money in sectors vulnerable to the concealment of values, such as the trade of luxury or high value articles, where it is more likely to circumvent tax control.
Rules already applied in Portugal
Portugal has been more tight than the new European ceiling for several years, says the same source. Between residents, it is forbidden to pay or receive amounts equal to or more than 3,000 euros in cash. This limit drops to 1,000 euros when it involves companies or professionals with organized accounting, including IRC and IRS passive subjects under these conditions.
For non -resident foreign citizens, provided they do not act as entrepreneurs or traders, payments are allowed to make up to 10,000 euros in cash. This exception covers, for example, tourists or occasional visitors, provided that operations are not related to regular commercial activities.
In the case of payments to the state, Portuguese law establishes an even lower ceiling. It is prohibited to settle tax taxes whenever the value exceeds 500 euros. The goal is to increase safety and ensure full traceability of taxpayers and tax administration transactions.
Borders under surveillance
The European Regulation also introduces new rules for the transport of cash inside and outside the EU. Any traveler who enters or leaves the community space with 10,000 euros or more in cash will have to declare this amount to the authorities.
This requirement applies to trips by plane, car, train or boat and intends to make it difficult to circulate money from illegal activities. The omission of the declaration may lead to immediate apprehension of the amounts and the beginning of administrative or criminal proceedings, depending on the severity of the situation, the same source refers.
Towards greater transparency
With these changes, the EU takes another step in combating economic crimes, reducing the maneuver margin so that illicit funds circulate without control. By limiting the use of cash in high -value operations, authorities make it difficult to handle money by less transparent roads.
By 2027, all EU countries will have to align their legislation with these new rules, adapting national laws to comply with the maximum cash payments. The expectation, according to, is that this harmonization contributes to greater financial security in the European space.
Curiosities about the use of cash in Europe
In countries like Germany, the maximum cash payments are already 10,000 euros, but in Italy this amount goes down to 5,000 euros. This difference reflects the way each country views the risk associated with the use of cash.
According to European Central Bank data, about 60% of European trade purchases are still paid in cash, despite the increasing digitization of payments.
And did you know that in France, since 2015, residents can’t shop over 1,000 euros in cash, except in very specific cases? Already in Sweden, considered one of the most “cashless” societies in the world, many establishments do not even accept cash, betting exclusively on electronic payments.
Also read:
