EU Cash Limits: New Withdrawal Rules & Limits Explained

In Poland, restrictions on cash transactions are already in force – but they apply primarily to entrepreneurs

In Poland, we are already accustomed to certain restrictions on cash transactions. However, they mainly concern enterprises. Currently, they are imposed on companies cash transaction limits – up to 15 thousand PLN (although it was planned to reduce the limit to PLN 8,000). Transactions exceeding the above amount must be made with using a payment account.

This limit applies to the transaction value – regardless of the number of payments made within it. The limit also applies, among others, to: foundations that are also listed in the register of entrepreneurs of the National Court Register. In this regard, one may be tempted to say that in the case of enterprises cash transactions are de facto prohibited because the amount of PLN 15,000 PLN – for a functioning enterprise – is a drop in the ocean.

Restrictions on cash transactions for individuals – the bank checks withdrawals for terrorism financing. What is the maximum daily withdrawal limit?

In the case of natural persons, on the one hand – there are no top-down limits on cash transactions – at least for now. On the other hand, it is not the case that we can freely buy everything we want for cash.

A good example is real estate purchase. Although it is obvious that carrying a suitcase of money from a bank to a notary’s office involves certain “risks”, it is in such situations, you can see for yourself how far the restrictions imposed by banks go.

In the event of selling real estate and having an amount of PLN 1 million on the account, if this amount is used to purchase a new property, nPlease bear in mind that the bank will not process such a transfer. You will need to visit a branch in person to increase the transfer limit – this cannot be done online.

In practice, the bank may agree to transfer up to approximately PLN 200,000. PLN per day – upon presentation of appropriate documents, e.g. a reservation agreement for the purchase of real estate or a development agreement. The reason is protection against terrorist financing.

Moreover, transactions over PLN 15,000 euros are automatically registered by banks and transferred to the General Inspector of Financial Information (GIIF) – including: for this very purpose. All this indicates that banks in Poland largely relieve the burden on the secret services and play a special role in the fight against terrorism.

The EU imposes restrictions on cash circulation. New withdrawal limits from 2027

Further restrictions are also imposed by the European Union. From 2027 Member States will be obliged to introduce limits on cash circulation. The maximum limit will be 10 thousand euroand in countries that do not use this currency – the equivalent of this amount.

The EU wants to ensure strong cash flows have not been used inappropriately. The change also aims to limit entry into circulation funds of unknown origin.

Member States will be able to introduce lower limits – e.g. 3 thousand euro. There are already limits for entrepreneurs in Poland, so the new regulations will not be particularly noticeable. However, the above changes show general trend away from cash transactions.

Cash withdrawal above the specified limit only with required administrative approval. There are high penalties for violating the ban [nawet do 150 tys. euro]

In some countries, cash withdrawal is more like obtaining administrative permission. This is how far-reaching restrictions have begun apply in Spain. Every paycheck above EUR 3,000 requires prior notification to the Spanish equivalent of the tax office – Tax Agency.

For amounts exceeding EUR 100,000 zpreaching must be done at least 72 hours in advance. You can submit the application online, but you will have to bring a piece of paper with you to get the cash. in person to the bank. Moreover, in the absence of such notification, you risk a fine ranging from EUR 600 to even EUR 150,000.

The purpose of introducing these regulations is, of course fight against terrorism financing, as well as limiting the gray zone.

Constitutional protection of cash transactions – which countries have them?

Some countries, opposing the direction of changes, they try to protect cash transactions at all costs. An example is Hungary, where cash payments have recently been introduced covered by constitutional protection. Right-wing circles most often oppose restrictions in this area, arguing that: limiting cash payments is also limiting civil liberties. The most frequently raised arguments include concerns about public surveillance and difficult access to one’s own money. However, these concerns did not come out of nowhere.

It’s worth mentioning situation in Canadawhen Prime Minister Justin Trudeau announced that in order to end protests and blockades he would use the so-called Emergencies Act, i.e. emergency regulations. He then threatened that protest participants may be cut off from their bank accounts. It informed this m.in. BBC.

However, completely eliminating cash transactions may bring some benefits – almost completely eliminates the gray zone, limits the space for drug traffickingand also maybe significantly increase revenues to the state budget. However, to introduce such drastic changes, a nationwide debate would certainly be necessary, taking into account the voice of every social group.

Restrictions on cash transactions – how does Poland compare to Europe?

In Poland, entrepreneurs can perform cash transactions up to PLN 15,000. Above this amount, a transfer is obligatory. And what does it look like in other European countries?

Germany

• No limits on cash payments.
• For amounts above EUR 10,000 – obligation to verify the buyer’s identity.

France

• 1,000 euros – limit for residents.
• 15,000 euros – for non-residents.
• Cash ban for property purchases above €3,000.

Greece

• Limit: 500 euros (except for car purchases).
• Higher amounts – only cashless.

Italy

• From 2022: limit 1,000 euros.

Portugal

• General limit: 3,000 euros.
• For taxpayers: only up to EUR 1,000.
• For tourists: up to 10,000 euros.

The czech republic

• Limit: 270,000 CZK (approx. 10,500 euros) per day.

Belgium

• Limit: 3 000 euro.
• Private transactions – without limits.
• Prohibition of cash payments, among others. when purchasing real estate.

euroweeklynews.com/europe-consommateurs.eu/BBC

Legal basis:

Act of March 6, 2018 – Entrepreneurs’ Law (Journal of Laws 2024, item 236)

Regulation (EU) 2024/1624 of the European Parliament and of the Council on the prevention of the use of the financial system for the purposes of money laundering and terrorist financing