03/06/2026
In Portugal, there are legal limits on cash payments and receipts as a measure to combat money laundering, tax fraud, and terrorist financing.
Here is what you need to know:
• Companies and professionals (taxable entities under IRC or IRS with organized accounting): Payments or receipts equal to or greater than €1,000 must be made through traceable means (bank transfer, nominative cheque, or direct debit). For a company, non-compliance with legal limits on cash use has significant fiscal and administrative penalty consequences:
• Fines: Payment or receipt of cash above the limit constitutes an offense
• Non-acceptance of tax-deductible expense: disregard the expense as a tax cost, which results in an increase of taxable profit (additional IRC payment and compensatory interest)
• Aggravation in inspection: improper use of cash is a risk indicator
• Framework within anti-money laundering legislation
• Lack of proof of payment
It is important to ensure transparency and traceability, preventing large amounts of cash from being used for illicit purposes 💷
