The EU changes the rules and, from July 2027, will prohibit paying more than 10,000 euros in cash for goods and services

Paying for a purchase of a very expensive product or service using only bills or cash has its days numbered, at least for a certain amount. And the European Union is going to set a maximum limit as of July 10, 2027 for cash payments that all Member States will have to comply with. That day the Regulation (EU) 2024/1624which was approved to strengthen the fight against money laundering and the financing of terrorism, among other objectives.

The new European maximum will be 10,000 euros in cash for the purchase of goods or contracting of services, according to Business Insider. Higher amounts must be paid through other systems that allow a record of the operation to be left.

Now, this does not mean that from 2027 you can pay 9,999 euros in cash in any country. In fact, each country and each bank has its own cash payment limit as a general rule. In the case of Spain, it is the Treasury that clarifies in which situations more than 1,000 euros can be paid in cash and in which situations it cannot.

Countries may have lower limits

Article 80 of the Regulation establishes that those who trade in goods or provide services may only accept or make cash payments of up to 10,000 euros, whether the amount is paid in a single transaction or divided into several apparently related transactions.

But it also allows Member States to impose lower caps.

In fact, the rule makes it clear that when there are already national limits below 10,000 euros, “these will continue to apply.”

Therefore, in Spain the change will have a limited effect on many operations.

Currently, Spanish legislation prohibits cash payments of 1,000 euros or more when one of the parties acts as a businessman or professional, a limit much stricter than the European one and which will continue to apply.

It does not affect payments between individuals in the same way

There is also another important difference, and that is that the European limit of 10,000 euros is basically for payments made in exchange for goods and services within a commercial or professional activity. The Regulation itself excludes from this limit payments between natural persons when neither is acting in a professional capacity.

That is to say, the limit to pay for a purchase from a company is one thing and a purely private operation between individuals is another.

The purpose of Brussels is to make it difficult for large commercial cash transactions to hide the origin or destination of the money.

Of course, the limit for paying in cash should not be confused with the rules on how much money a person can physically carry or when they must declare it. They are different obligations.

In this way, from July 10, 2027, for the first time there will be a common European ceiling of 10,000 euros for large commercial cash payments, but each country can continue to be stricter. And Spain, at least with the current regulations, will continue to have one of those lower limits.