EU to cap cash payments at €10,000 from July

A common €10,000 limit on cash payments for the purchase of goods or provision of services will take effect across the European Union on 10 July 2027.

The measure is part of Regulation (EU) 2024/1624, adopted to strengthen efforts to combat money laundering and terrorist financing.

The limit will apply whether a payment is made in a single transaction or split into several transactions that appear to be linked.

It will cover people and businesses that trade in goods or provide services, but not transactions between private individuals acting outside their professional activities.

Countries may keep lower limits

The regulation allows EU member states to retain stricter national limits. In Spain, cash payments cannot exceed €1,000 when one of the parties is acting as a business or professional, so the new EU maximum will not change that limit.

The aim is to restrict the use of large sums of cash in commercial transactions and make it harder to use them to conceal illicit financial activity.

The limit will not automatically apply in Andorra

The regulation sets obligations for EU member states. Therefore, the new limit will not automatically apply in Andorra as a result of the signing of the Association Agreement with the European Union.