Large payments in cash will no longer be allowed in Europe from next year. Regulation 2024/1624, outlining the European Union’s measures against money laundering, will enter into force on July 10, 2027, and with it, a newly established limit of 10,000 euros for cash payments. We tell you all the details and how this rule affects Spain
Why does it matter? Until now, the EU has not had a common limit for cash. Some countries had strict limits on cash payments, while others barely limited them at all, so many could take advantage of these legal loopholes to commit crimes. Brussels has confirmed that the package of measures adopted in May 2024 aims to close these loopholes. The regulation applies directly, so governments don’t need to pass their own laws to enforce the limits.
Details. This new limitation when paying in cash is mentioned in Article 80 of the Regulation. And according to the regulations, any person who deals in goods or provides services may only accept or make cash payments of a maximum of 10,000 euros or its equivalent in another currency:
- Linked payments are counted together. The limit applies whether the contract is a one-time payment or multiple transactions that appear to be linked. For example, if you buy a piece of furniture for 14,000 euros and transfer 7,000 euros in cash on Monday and 7,000 euros on Friday, the authorities will probably treat it as a single transaction and you will be in violation.
- The limit is max. Member States may establish lower limits after consulting the European Central Bank and must notify the Commission within three months of their introduction.
- Existing lower limits are maintained. National limits that are already below 10,000 euros continue to apply.
Not applicable to individuals. Payments between persons where neither party acts as a professional. On the other hand, payments or deposits made to a bank, electronic money issuers and payment service providers are exempt from this limit. Therefore, depositing cash beyond that limit at your bank counter will also not be prohibited.
In addition, for cash transactions of 3,000 euros or more, firms covered by anti-money laundering regulations must identify the client.
What happens in Spain. In itself, Spain’s law is already stricter than Brussels’. And according to Law 11/2021 published in the BOE, payments of 1,000 euros or more cannot be made in cash if one of the parties is a businessman or professional.
The limit is raised to 10,000 euros for those who are not tax residents of Spain and do not work professionally, such as tourists. Of course, people who trade with each other, without being a professional to provide services or deliver goods and real estate, do not face any restrictions in Spain.
As Article 80 of the European Regulation expressly allows lower national limits to continue, Spain has no legal requirement to amend its rules, so it is unlikely that anything will change in the country.
and what now. As we mentioned, the rule will be effective from July 10, 2027, so companies that regularly handle large amounts of cash like car dealerships, jewelry stores, property-related services, and the like will need to adjust their payment and fulfillment processes within a few months. The change will be much more significant in countries with high or no cash limits, such as Germany or Austria
Cover image European Commission
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