New EU Cash Limit to Curb Cash Transactions in Germany from 2027

Starting summer 2027, Germany and the broader EU will enforce a new cash payment cap of 10,000 euros to curb money laundering and terrorist financing. This EU-wide regulation targets commercial transactions only; private cash payments remain unrestricted unless a party is engaged professionally. Currently, payments above 10,000 euros require buyers to prove their identity and the origin of their funds; this threshold lowers to 3,000 euros under the new rule.

Germany already has some related restrictions: since 2020, anonymous purchases in the precious metals trade have limits, and since April 2023, cash payments for real estate transactions have been banned. Compared internationally, some EU countries maintain stricter limits, such as France and Spain at 1,000 euros and Greece at 500 euros.

Critics, including data protection experts and the German Savings Banks Association, doubt the effectiveness of these measures in combating financial crimes. Meanwhile, a Deutsche Bundesbank study shows a continuing decline in cash usage, despite 93% of Germans wanting to retain the option to pay by cash or electronically. Additionally, from 2026, Deutsche Post will cease cash pension payments, and the use of checks as payment methods will end.

This regulation reflects the EU's broader push towards transparency in financial transactions while balancing citizens' preference for cash. However, the debate over its practical impact is ongoing.