In Portugal, the general limit for cash payments stands at €3,000. However, this threshold significantly decreases to €1,000 when a company or a taxpayer with organized accounting is part of a transaction.
This legislation, Article 63.º-E of the General Tax Law, aims to enhance transaction transparency, prevent artificial payment splitting, and curb the use of cash in larger business dealings.
Failure to adhere to these rules can lead to complications, as the law prioritizes the substance of the transaction over administrative maneuvers to circumvent limits, ensuring financial traceability.
