The limits on cash payments continue to raise doubts, especially at a time when the European Union (EU) has already defined new rules for high-value transactions. In Portugal, however, the current situation maintains its own stricter restrictions, which requires a good understanding of what is in force in the country today.
The EU, through , approved a common ceiling of 10 thousand euros for cash payments, but this rule only comes into effect on July 10, 2027. Furthermore, European legislation allows each Member State to maintain or adopt lower national limits, whenever it considers this to be justified in view of the identified risks.
What is the limit for cash payments in Portugal
In Portugal, the general rule is more demanding. The law prevents payments or receipts in cash of amounts equal to or greater than 3,000 euros. Furthermore, in the case of IRC taxpayers and IRS taxpayers with organized accounting, payments of a value equal to or greater than 1,000 euros must be made through a means that allows the recipient to be identified, such as bank transfer, certified check or direct debit.
There is, however, an exception for individuals not resident in Portuguese territory, as long as they do not act as entrepreneurs or traders. In these situations, the limit increases to 10 thousand euros, in line with the maximum value provided for in the European framework.
When taxes are involved, the limit drops even further. The , of August 22, prohibits the payment of taxes in cash above 500 euros. It also reminds you that legal entities must pay tax installments and other credits collected by the Federal Revenue electronically.
In practice, the new European ceiling does not mean that Portugal will start authorizing cash payments of up to 10 thousand euros between residents. The European regulation sets a common maximum limit for the EU, but leaves room for each country to maintain stricter rules. As Portugal already applies limits of 3,000 and 1,000 euros in several situations, national legislation remains, for now, more restrictive than the future European rule.
The objective assumed by European institutions is to reduce the risk of money laundering, terrorist financing and other illicit operations associated with the use of large amounts of cash.
The European Commission emphasizes that cash remains a legitimate and available means of payment on a daily basis, but understands that high-value transactions pose increased risks and are more difficult to trace.
Be careful when transporting money across borders
Separately from the rules applicable to payments, the obligation to declare to customs authorities any entry into or exit from the EU with 10 thousand euros or more in cash remains in force.
The European Commission explains that this declaration is mandatory for travelers and warns that undeclared money may be retained, in addition to being subject to sanctions.
Therefore, the maximum amount that can be paid in cash in Portugal is, as a rule, not 10 thousand euros. In most situations among residents, the general limit is 3,000 euros, falling to 1,000 euros in certain payments made by companies or taxpayers with organized accounting, in accordance with Law No. 92/2017.
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