Although Regulation (EU) 2024/1624 establishes this common maximum limit for the European area, the rule, which will only apply from July 2027, allows Member States to maintain tighter restrictions, as is currently the case in Portugal, to combat money laundering and the financing of terrorism.

Under the current legal framework, the general rule prevents any cash payment or receipt of an amount of €3,000 or more for most resident citizens.

This limit becomes even more stringent for companies (subject to corporate income tax) and professionals with organised accounting, who are required to use traceable payment methods, such as bank transfer, nominative check, or direct debit, for any transaction of €1,000 or more.

However, there are exceptions and specificities that taxpayers should be aware of. In the case of tax payments, Law No. 92/2017 is even stricter, prohibiting cash payments for amounts exceeding €500. On the other hand, the limit is extended to €10,000 only when dealing with individuals not resident in Portuguese territory, provided they are not acting as entrepreneurs or traders.

The Bank of Portugal also reminds that these payment restrictions should not be confused with the rules for movement across borders: any traveller entering or leaving the European Union carrying €10,000 or more in cash is still required to declare the amount to customs authorities, under penalty of retention of the money and application of sanctions.

Thus, despite the new European directive, Portugal maintains its strict rules on cash use, prioritising transparency in daily financial transactions.