What is the limit to cash payment in Italy in 2024?
This is what the law says.
Dear brothers and sisters,
Today we will deal with an issue that has great practical importance: the identification of a precise limit on cash payments for 2024 represents an action aimed at reducing various illicit activities, including money laundering, terrorist financing and tax evasion. In this regard, it is important to know that the new law has not identified changes compared to the previous year: the limit on cash payments is 4.999.99 euros for each payment and for transactions deferred over seven days. Let’s see, more specifically, what the reference legislation is and what the possible penalties are for those who exceed the cash threshold.
What is the maximum amount that can be paid in cash?
For 2024, the maximum accepted limit for cash transactions is set at 4,999.99 euros. This threshold, last updated by the Budget Law 2023, has increased the limit on maximum cash payment in Italy from 2,500 euros and is applicable to any transaction between natural and legal persons, including collective entities and companies.
Beyond the legal threshold, when making payments, it is necessary to contact banking institutions, Poste Italiane or other financial intermediaries. It is critical that the money’s path is documented and traceable. Payments that exceed the identified threshold of 5,000 euros must be made through exclusively traceable and mandatory means of payment, under penalty of penalties for those who pay the money and those who receive it.
The above rules do not concern the withdrawal of money or the deposit of cash in one’s own current account, but only apply to transfers of cash and bearer securities, both in euros and in foreign currency, made between different natural or legal persons. In addition, the restriction also applies if the transfer exceeds the limit through multiple fractional and artificially subdivided payments.
Exceeding the cash threshold: risks and penalties.
According to the law, if the limit on cash payment is exceeded, a penalty equal to the limit set for the use of cash would be imposed. This is an administrative sanction equal to or greater than 5,000.00 euros.
In such cases, there are penalties for both those who make the payment irregularly and those who receive it, as well as penalties for those who do not report irregularities to the competent authorities.
In the latter case, the amount of the penalty varies from a minimum of 3,000.00 euros to a maximum of 15,000.00 euros.
Even if the limit does not apply to withdrawals and deposits of money to the current account, if an individual exceeds the threshold established for cash withdrawals, the financial institution may request a justification for the operation. Based on the response provided, the bank will decide whether to report the transaction to the Financial Intelligence Unit (FIU) of the Bank of Italy for anti-money laundering purposes.
Transportation of cash beyond Italian borders.
In addition to the provisions for the 2024 cash payment limit, there is also a limit to the amount of cash that can be transported beyond Italian national borders. Specifically, for amounts over 10,000 euros, it is mandatory to make a declaration to the customs authorities.
For cash transactions that exceed this limit, the formal registration of the transaction is required, to be implemented through traceable means of payment, under penalty of the possible application of sanctions or fines. In this regard, there may be exceptions or peculiarities depending on the type of transaction or the circumstances and it is therefore essential to inquire about the specific regulations applicable.
The Fiat Lux team is ready to clarify any doubts you may have on the subject. You can write to us at our address: info@fiatlux.legal and we will be happy to provide you with all the information you may need to help you navigate the intricacies of Italian regulations and bureaucracy.
Kind regards and see you soon,
Fiat Lux Legal
Avv. Federica Loreti