Portugal – Restrictions on cash payments
A recent law has been passed barring the payment and receipt of cash of amounts.
The new provisions are in force since August 23, 2017 and cash payments in excess of Euro 3,000 are, as a rule, restricted. This new diploma is a step forward to prevent the use of the Portuguese financial system for money laundering or terrorist financing purposes.
Although there are exceptions for non-resident individuals (cap of Euro 10.000 euros or the equivalent amount in foreign currency) they are applicable only if they do not act as entrepreneurs or traders. A lower limit of Euro 500 applies to payment of taxes.
To determine the applicable limit, all payments associated with the sale or provision of a service or good are aggregated. This rule voids any artificial arrangement created to avoid triggering the restriction.
Penalties apply for noncompliance (Euro 180 to Euro 4,500 for individuals and double these amounts for corporate entities).