The European Union will set a maximum limit of €10,000 for cash payments for goods and services when a business owner or professional is involved. This measure, set out in Regulation (EU) 2024/1624 of the European Parliament and of the Council of 31 May 2024, will enter into force on 10 July 2027 and will be mandatory in all Member States of the European Union. The new European regulation stipulates that any transaction exceeding this amount must be carried out using traceable means of payment, such as bank transfers, cards or digital systems.
Furthermore, stricter identity checks will be implemented for all financial transactions reaching or exceeding €3,000, with the aim of enhancing security and preventing money laundering. In the case of Spain, this reform will have a mainly symbolic impact. Since 2021, our country has already had legislation in place prohibiting cash payments exceeding €1,000 when one of the parties to the transaction is a business owner or professional. However, for individuals not resident in Spain, the current limit already stands at the €10,000 now set by Brussels, which demonstrates a degree of prior alignment with EU criteria.
The EU directive responds to the need to combat the black economy and ensure the traceability of financial transactions throughout the European Union. Brussels considers that large amounts of cash facilitate fraudulent practices, tax evasion and activities related to money laundering. By establishing a common cap for all member states, the European Commission seeks to standardise tax policies and make it more difficult to carry out opaque transactions that escape the control of tax authorities.
The measure forms part of a broader package of initiatives aimed at strengthening financial transparency and reinforcing the fight against fraud across the European single market. Experts point out that this regulation represents a significant step towards the digitisation of economic transactions, a trend that has accelerated markedly in recent years. The use of cash has fallen progressively in favour of electronic payment methods, especially following the COVID-19 pandemic, which gave a definitive boost to contactless payment systems.
Spanish legislation on cash payments is among the most restrictive in the European Union. Whilst the new EU limit is set at €10,000, Spain maintains its cap at €1,000 for transactions involving at least one professional or business owner, a figure ten times lower than that established by Brussels. This difference means that Spanish business owners and the self-employed already operate under stricter conditions than those the European Union will now impose on the other member states.
Therefore, the entry into force of the EU regulation will not require substantial changes to national legislation, apart from possible technical adjustments relating to identity checks on transactions exceeding €3,000. For private individuals carrying out transactions between themselves, without the involvement of any professional, there is currently no limit in Spain. However, the tax authorities may request proof of the origin of funds in high-value transactions, particularly in the case of sales of vehicles, property or other high-value assets. The Tax Agency has mechanisms in place to investigate suspicious cash movements that may indicate tax fraud or money laundering.
Regulation (EU) 2024/1624 of the European Parliament and of the Council is a legislative instrument directly applicable in all Member States of the European Union. Adopted on 31 May 2024, this legal text sets uniform limits on cash payments with the aim of preventing the use of physical cash in illicit activities and strengthening the transparency of the European financial system. Unlike directives, which require transposition into national law, European regulations are immediately applicable once published in the Official Journal of the European Union and after the period set for their entry into force has elapsed.