The European Union (EU) will introduce a maximum limit of 10,000 euros to pay in cash, applicable from July 10, 2027, as part of the new package of rules to combat money laundering and terrorist financing.
According to the Spanish portal La Razón, the measure is provided for in Regulation (EU) 2024/1624, which creates a set of common rules (the so-called “single rulebook”) to reinforce controls and reduce the use of anonymous instruments in higher value transactions.
The stated intention is to hinder practices such as tax evasion and money laundering, by limiting large payments that leave no digital trace and are more difficult for authorities to track.
What changes in practice when paying in cash from 2027
The European ceiling means that, as a rule, payments above 10,000 euros cannot be made in cash when the transaction is covered by the standard, with the buyer being forced to use means such as transfer or card.
European legislation also provides that Member States may adopt lower thresholds and more demanding measures, as long as they are justified by legitimate objectives of public interest.
Therefore, the “10,000” limit works as a common ceiling, but does not prevent countries that already have more restrictive rules from maintaining them, and that is precisely what happens in several States.
And in Portugal, what already exists today
In Portugal, there are national limits in force for cash payments: in general, cash payments of a value equal to or greater than 3,000 euros are prohibited in several situations, and there are specific rules that are even stricter for some taxpayers.
For IRC taxpayers and IRS taxpayers with organized accounting (or required to have it), the limit is lower: payments from 1,000 euros must be made by means that allow the recipient to be identified.
There is also a specific rule for taxes: it is not allowed to pay taxes above 500 euros in cash, which reinforces the tendency to reduce the use of cash in tax obligations.
The Commission and several European entities have argued that a common rule helps to avoid “holes” between countries, especially when a transaction crosses borders within the single market.
In practice, the objective is to make it more difficult to move large amounts of cash without scrutiny, strengthening the traceability of payments in sectors considered most exposed to risk.
Still, the measure has generated debate in some countries where cash is seen as synonymous with privacy and freedom of choice, with criticism that it limits traditional payment habits.
What you should remember for everyday life
For most common purchases, the European rule does not change anything immediately, but it has an impact on high-value transactions, such as certain purchases and payments in a commercial context.
In Portugal, as there are already lower limits in several situations, many taxpayers and companies are already used to resorting to electronic means when values rise.
According to , the relevant change is the existence of a uniform ceiling in the EU with a set date (July 10, 2027), which tends to reduce differences between countries, and increase the predictability of the rules for those who buy, sell or travel within the European space.
Also read:
