Greece to Cap Cash Payments at €500 – Pay More Than That, and You'll Need a Card
The government says it wants to close tax evasion loopholes. The penalty? Twice the amount you paid in cash.
Greece is getting serious about cash. The country's Ministry of National Economy and Finance has submitted a new multi-bill that would ban cash payments above €500 ($587). The measure is part of a wider effort to increase financial transparency and combat tax evasion – two challenges that have dogged the Greek economy for decades.
Under the proposed legislation, taxpayers and businesses must complete any transaction worth €500 or more electronically. Crucially, authorities will calculate the threshold based on the total value of the transaction, not on individual receipts or partial payments. That means splitting a €1,000 purchase into two €500 cash transactions would still be illegal. The aim is to close loopholes that previously allowed people to bypass cash restrictions by breaking payments into smaller chunks.
The penalties are steep. Offenders will face a fine equal to twice the amount paid in cash. In practical terms, if you pay €600 in cash for something, you would be fined €1,200. The government expects this double penalty to act as a strong deterrent and encourage broader use of electronic payment methods across the economy.
The bill does not stop at cash restrictions. It also reduces penalties for the late submission of zero or credit VAT (Value Added Tax) returns, offering relief to taxpayers in specific cases. At the same time, authorities are expected to tighten oversight of cryptocurrency transactions, reflecting the government's growing focus on digital financial activity and emerging forms of value transfer.
Overall, the reforms aim to strengthen tax compliance and improve financial transparency. By limiting the use of cash and expanding monitoring mechanisms, Greek authorities hope to reduce undeclared income and modernise transaction practices for both businesses and consumers. If lawmakers approve the bill, the measures would mark another step toward a more digitised and closely monitored financial environment in Greece.
For now, cash is still king – just not for anything above €500. And if you try to get around it, be prepared to pay double. The message from Athens is clear: swipe, tap, or else.