In Portugal, strict regulations govern the use of cash for transactions to ensure traceability. Under current law, it is prohibited to pay or receive cash for any transaction involving amounts equal to or greater than 3,000 euros. This rule applies to both the payer and the recipient, and attempting to circumvent the limit by splitting a single transaction into multiple smaller payments is considered an infringement.
For entities with organized accounting, such as companies subject to IRC or individuals subject to IRS with organized accounting, the threshold is lower. These parties must use traceable means—such as bank transfers, nominative checks, or direct debits—for any invoice or document valued at 1,000 euros or more.
Additionally, cash payments for taxes are limited to 500 euros. Violating these regulations can result in fines ranging from 180 to 4,500 euros. While the European Union has approved a 10,000 euro limit for cash payments for goods and services, that specific regulation is not scheduled to apply until July 10, 2027, and does not mandate that Portugal increase its current, more restrictive limits.