From the summer of 2027, the European Union will impose a maximum limit on cash payments in commercial transactions. Purchases or services whose value exceeds 10 thousand euros cannot be paid in cash in any of the 27 Member States. According to Expresso, the objective is to standardize rules that currently vary from country to country and reinforce the fight against money laundering and terrorist financing.
Regulation establishes a common limit of 10 thousand euros
The regulation that establishes this change is Regulation (EU) 2024/1624, which details in the chapter on cash controls that any payment above 10 thousand euros, when at least one of the parties is a professional or businessman, will have to be made through means that leave a formal trace. This includes bank transfers, debit or credit cards, and cashier’s checks.
Until the rule comes into force, there will be a period of preparation for companies and citizens to adapt to the new legislation.
Currently, limits for cash payments vary significantly between Member States. In Spain, for example, the ceiling for transactions between professionals has been 1,000 euros since 2021, while in Germany or Austria there were no restrictions or they were higher.
The new community standard thus sets a common threshold of 10 thousand euros, whilst maintaining the possibility for each country to impose more restrictive rules if they so wish. According to the same source, the intention is to create greater uniformity and predictability in the European economic space.
What changes in practice
The ban does not eliminate cash altogether. Transactions below the limit will continue to be able to be made in cash, as will transactions between individuals who do not act as companies or professionals.
A sale of second-hand goods between two individuals could therefore exceed 10 thousand euros in cash, although experts warn of security and traceability issues.
Combating money laundering and parallel economy
The measure occurs at a time when physical money is still seen as the preferred instrument for hiding illicit financial flows. Europol and the European Commission have repeatedly highlighted that large amounts of cash enable money laundering and make it difficult to detect economic crimes.
By imposing the ceiling, Brussels seeks to increase transparency, facilitate inspection and reduce fraud, tax evasion and the circulation of money outside official channels.
Impact for consumers and businesses
The impact will vary between countries. In Spain, where the limits are already lower than what the EU now establishes, adaptation will be minimal. In nations like Germany and Austria, where the use of cash is even more entrenched, merchants and consumers will have to get used to new habits, accelerating the digitalization of payments. Small businesses may face additional challenges in implementing electronic means, although this trend is already underway.
Also according to , the measure has generated debate about financial privacy and individual freedom, especially among citizens less accustomed to digital systems. The European Union emphasizes, however, that the priority is to reinforce control mechanisms to protect the financial system and combat the parallel economy that depends on the circulation of cash without a documentary trail.
The limit of 10 thousand euros will therefore be a new milestone in the way significant transactions are paid across the community, with the aim of making cash less and less a route for illicit activities.
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