Cash payments will be restricted in the EU, including Hungary

Starting in July 2027, the European Union will introduce a uniform cap on cash payments across all its member states, setting the maximum amount at EUR 10,000. This new regulation aims to strengthen the fight against money laundering, terrorist financing, and other illicit financial activities by reducing the use of large cash transactions.

Key details of the new regulation

According to EVZ.de, under the upcoming rules, any cash payment exceeding EUR 10,000 will be prohibited in business and professional transactions throughout the EU. This limit applies regardless of whether the payment is made in euros or other currencies. For cash transactions between EUR 3,000 and EUR 10,000, sellers will be required to verify the buyer’s identity by requesting an official identity document. This measure is designed to increase transparency and traceability in cash dealings.

Exemptions for private transactions

The regulation does not apply to private individuals engaging in non-professional transactions. For example, selling a used car to a neighbor in cash will still be permitted without restrictions. However, professional traders and businesses will need to comply with the new limits and identification requirements.

Flexibility for member states

While the EU sets the EUR 10,000 ceiling, member states may choose to implement stricter limits if they wish. Countries with existing lower thresholds, such as France and Spain, where the limit is currently EUR 1,000, can maintain their more stringent rules. This flexibility allows national governments to tailor the regulation to their specific financial environments.

Situation in Hungary

There are currently no restrictions on cash payments by private individuals in Hungary, but a monthly limit of HUF 1.5 million (approximately EUR 3,700) applies to businesses. At the same time, in April 2025, the Hungarian Parliament amended the Constitution to enshrine the right to pay in cash as a fundamental right, thus making the acceptance of cash mandatory in consumer protection and commercial regulations, with the exception of certain services that require electronic payment (e.g. digital services, foreign webshops).

This Hungarian regulation appears to be partly at odds with the EU restriction, but the EU rule will not come into force until 2027, giving Member States time to transpose it into national law.

Broader impact and implementation

The regulation targets sectors that are particularly vulnerable to money laundering, including banks, real estate agencies, casinos, and luxury goods dealers. Additionally, cryptocurrency transactions over EUR 1,000 will also be subject to mandatory client verification under related EU rules. The new rules officially entered into force in July 2024 but will only take effect from July 2027, giving member states over two years to adapt their national legislation and prepare for implementation.

Summary table

Aspect	Regulation Details
Maximum cash payment	EUR 10,000 (from July 2027)
Applies to	Business/professional transactions
Exemptions	Private, non-professional transactions
ID required for	Cash payments between EUR 3,000 and EUR 10,000
Stricter national rules	Allowed and may be retained or introduced
Main goal	Fight money laundering and terrorist financing

This measure is seen as a significant shift for countries with traditionally high cash usage, and while it aims to curb financial crime, it has sparked debate about privacy and the future of cash in Europe.

Conclusion

The EU’s decision to cap cash payments at EUR 10,000 marks a significant step toward harmonising anti-money laundering efforts across Europe. While the move is expected to enhance financial transparency and security, it also raises questions about privacy and the future role of cash in everyday transactions. As the 2027 deadline approaches, businesses and consumers alike will need to familiarise themselves with the new rules and adjust their payment practices accordingly.

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