New rules will restrict large cash transactions in Spain and other EU countries, with a €10,000 (about £8,500) limit on cash payments for goods and services set to be enforced from July 10, 2027. The measure, part of the European Central Bank's (ECB) move towards a digital Euro, will apply to all commercial transactions and cannot be bypassed by splitting payments, as linked cash payments will be treated as a single transaction under the law.
Identity Checks for Mid-Range Payments
For transactions between €3,000 and €10,000, merchants will be required to verify the customer's identity before accepting cash. This aims to link all financial transactions to individuals, even when cash is used, to prevent money laundering. This could affect Brits paying for hotels or car hire in cash.
EU countries can set their own limits. France has already confirmed a maximum of €1,000 for its own taxpayers, but for holidaymakers the limit will be €15,000 (about £12,800).
Monitoring and Reporting Requirements
Banks in the EU will continue to monitor unusual deposits at cash points and must report transactions over €3,000 where large banknotes are used. In Spain, there is also a limit of €100,000 (about £85,500) on the amount of cash a person can carry in public, intended to deter criminal activities and terrorism.
Travelers moving between countries, even within the Schengen area, must declare amounts over €10,000 to customs upon arrival.
Digital Euro Rollout Planned for 2029
The digital Euro plan would create a central bank digital currency (CBDC) overseen by the ECB, offering a digital alternative to physical cash. It would allow people to make online and offline purchases free of charge with Euros stored on a card or mobile app. A rollout is planned for 2029, aiming to reduce reliance on US payment systems like Visa and Mastercard.
European Central Bank President Christine Lagarde said in a Euronews interview that the move isn't about scrapping cash or monitoring citizens, stating: "Cash will not go away, it will be rejuvenated."
