Cash transactions of over 500 euros to carry hefty fines

Taxpayers, such as property buyers, who insist on breaking the law by conducting cash payments in excess of 500 euros each are facing fines, which can reach up to twice the value of the transaction, as the provisions of the new tax law have come into force.

Before the changes the fine was €100 euros. In fact, the government wished to bring down the ceiling of cash transactions to €300, in order to limit tax evasion, but the ECB has not accepted it.

The new law also prohibits the purchase of property with cash, and the entire transaction must be done through a bank.

The fine amounts to 10% of the amount paid in cash, ranging from €10,000 to €500,000.