EU Imposes Cash Transaction Limits to Combat Money Laundering and Fraud
If you travel frequently in Europe, this concerns you. The European Union has tightened its grip on cash transactions by imposing a continent-wide cap on the amounts that can be spent per transaction.
For years, different countries have had their own rules, some strict, others more lenient. Spain and France have already implemented strict limits of €1,000, while countries like Germany, Austria, and the Netherlands have allowed their citizens to pay in cash without restrictions. Now, Brussels is intervening to standardize the rules, which not everyone is happy about. As of 2027, cash payments will be limited to a maximum of €10,000 across the 27 member states. This measure aims to combat money laundering, suspicious transactions, and tax fraud. Additionally, a recommended cap of €100 is set for everyday purchases, effective from the same date.
However, not everyone is thrilled about this measure. Germany and Austria, where cash is still king, consider this cap a direct attack on financial freedom. Privacy advocates argue that, while the measure targets criminal activity, it also penalizes law-abiding citizens who prefer to pay in cash rather than with plastic.
For us, this means we'll need to think about taking a bank card with us on trips rather than cash. Generally, you'll need to order one a few weeks in advance from your bank or head to the post office, which offers this type of card.
