Limits on cash payments continue to raise doubts, especially now that the European Union (EU) has already approved new rules for high-value transactions. In Portugal, however, the legal framework in force maintains its own stricter restrictions, so it is important to understand exactly what values are currently allowed in the country.
The EU, through , defined a common limit of 10 thousand euros for cash payments, but this measure will only come into effect on July 10, 2027.
Furthermore, the European regulation allows each Member State to maintain or approve lower national limits, whenever it considers that this is justified in relation to the existing risks.
What is the limit for cash payments in Portugal
In Portugal, the general rule is already more restrictive. The legislation prohibits payments or receipts in cash of R$3,000 or more.
Furthermore, in the case of IRC taxpayers and IRS taxpayers with organized accounting, payments equal to or greater than 1,000 euros must be made by a means that allows the beneficiary to be identified, such as bank transfer, certified check or direct debit.
There is an exception to the rule
There is, however, an exception for individuals not resident in Portuguese territory, as long as they are not acting as entrepreneurs or traders. In these cases, the limit increases to 10 thousand euros, being in line with the maximum ceiling provided for in the European framework.
When it comes to taxes, the limit is even lower. The , of August 22, prevents the payment of taxes in cash above R$500.
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 limit does not mean that Portugal will allow cash payments of up to 10 thousand euros between residents. The EU regulation establishes a common maximum ceiling, but gives countries the freedom to maintain more demanding rules.
As Portugal already applies limits of 3,000 and 1,000 euros in various situations, the national law remains, for now, stricter 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 that may be associated with the use of large amounts of cash.
The European Commission points out that cash continues to be a legitimate and usable means of payment on a daily basis, but considers that high-value transactions represent increased risks and are more difficult to monitor.
Be careful when transporting money across borders
Apart 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 giving rise to sanctions.
Therefore, the maximum amount that can be paid in cash in Portugal is, in general, not 10 thousand euros. In most cases among residents, the general limit is 3,000 euros, falling to 1,000 euros for certain payments made by companies or taxpayers with organized accounting, in accordance with Law No. 92/2017.
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