What are the limits for cash payments?
Posted: Thu Dec 05, 2024 10:48 am
Paying in cash continues to be a widely used form of payment, but did you know that there are limits on cash payments? Yes, it's true, these limits are part of a package of measures to combat money laundering. We will explain in detail what cash is and the payment limits defined by law.
What is Numerário?
Cash is money in the form of notes and coins, and is a means of payment with immediate effect. However, by its nature, cash is subject to counterfeiting, which makes it susceptible to fraud and schemes.
Therefore, part of the measures implemented by the Government linkedin database the Bank of Portugal to combat money laundering and terrorist financing involves imposing limitations on cash payments and receipts.
What are the Cash Payment Limits?
To combat money laundering, Decree Law 92/2017 (addendum to the General Tax Law) established limits on cash payments, namely:
Individuals resident in Portugal may only make payments or receive cash for amounts less than €3,000 (or the equivalent in foreign currency);
Individuals who do not live in national territory may make cash payments up to a maximum amount of €10,000, provided they do not act as traders or entrepreneurs;
traders, businesspeople or other IRS or IRC taxpayers, under an organized accounting regime, have a limit of €1,000 for cash transactions;
€500 is the limit for paying taxes in cash.
In addition to the limitation stipulated by law, some entities establish their own limits for cash payments. This is the case of Social Security, which has set 150 euros as the maximum amount for payment of contributions in cash.
payment framework
However, these rules do not apply to the following financial transactions:
Receiving deposits;
Provision of payment services (e.g. payshop);
Issuance of electronic money;
Carrying out manual exchange operations;
Payments arising from court decisions or orders;
Other situations provided for in special law.
All payments exceeding the amounts stipulated by law must be made using a payment method that allows the recipient to be identified. For example, bank transfer, personal check or direct debit.
What is Numerário?
Cash is money in the form of notes and coins, and is a means of payment with immediate effect. However, by its nature, cash is subject to counterfeiting, which makes it susceptible to fraud and schemes.
Therefore, part of the measures implemented by the Government linkedin database the Bank of Portugal to combat money laundering and terrorist financing involves imposing limitations on cash payments and receipts.
What are the Cash Payment Limits?
To combat money laundering, Decree Law 92/2017 (addendum to the General Tax Law) established limits on cash payments, namely:
Individuals resident in Portugal may only make payments or receive cash for amounts less than €3,000 (or the equivalent in foreign currency);
Individuals who do not live in national territory may make cash payments up to a maximum amount of €10,000, provided they do not act as traders or entrepreneurs;
traders, businesspeople or other IRS or IRC taxpayers, under an organized accounting regime, have a limit of €1,000 for cash transactions;
€500 is the limit for paying taxes in cash.
In addition to the limitation stipulated by law, some entities establish their own limits for cash payments. This is the case of Social Security, which has set 150 euros as the maximum amount for payment of contributions in cash.
payment framework
However, these rules do not apply to the following financial transactions:
Receiving deposits;
Provision of payment services (e.g. payshop);
Issuance of electronic money;
Carrying out manual exchange operations;
Payments arising from court decisions or orders;
Other situations provided for in special law.
All payments exceeding the amounts stipulated by law must be made using a payment method that allows the recipient to be identified. For example, bank transfer, personal check or direct debit.