Big changes from 2027: Cash cap in Germany!

Big changes from 2027: Cash cap in Germany!

The world of cash payments is facing a fundamental change. From summer 2027, a cash limit of 10,000 euros will come into force in Germany and the entire EU. This important regulation, which was passed by the European Union in 2024, is primarily intended to combat money laundering and the financing of terrorism. At the moment, consumers can still pay unlimited amounts in cash, but that will soon change. Buyers with an amount of 3,000 euros or more have to prove their identity and prove the origin of the money, which could pose new challenges for many.

But what exactly does this mean for consumers? The new regulation only affects commercial transactions. Payments between private individuals remain unaffected as long as none of the parties involved are acting professionally. Although this feature could make neighborhood businesses and private sales easier, it also raises questions about the security of action.

A look at the EU

While Germany will not come on board with the cap until 2027, other EU countries have already introduced a lower cash cap. In France and Spain, for example, this is 1,000 euros, while in Greece only 500 euros are permitted as cashless. Italy has set a limit of 5,000 euros. Such differences could result in consumers having to look more closely at cashless payment methods when traveling or doing business abroad.

In addition, there has been a limit of 1,999.99 euros for anonymous purchases in precious metal trading in Germany since January 2020. From April 2023, cash payments when purchasing real estate will be completely prohibited, which will bring further changes in purchasing behavior.

Society in transition

Another notable point is that the trend towards cashless payments is already increasing rapidly. According to a study by the Deutsche Bundesbank, the use of cash continues to decline, but paradoxically, over 93 percent of Germans still want the option to pay in cash. You can increasingly see “No Cash” signs in many city centers, which makes it clear that the trend towards cashlessness cannot be stopped.

The changes are also intensified by how pensions are handled. From January 1, 2026, Deutsche Post will stop paying pensions in cash; It becomes clear that the gap between the digital and analogue worlds is becoming ever wider. The use of checks will also be phased out by the end of 2027, raising questions about how such changes will affect the older generation.

Data protection advocates express concerns in this context because they view the cash limit as a restriction on personal freedom and strongly doubt its effectiveness against crime. The discussion about the right balance between security and freedom remains (and perhaps even increasingly) explosive.

All in all, citizens are facing a change in their payment behavior. Anyone who has a good knack for the challenges ahead could quickly adapt to the new norm and benefit from emerging developments.