If you run a business in Italy, it’s important to be aware of the cash payment limit. As regulations evolve and money moves increasingly online, being mindful of the cap, staying within the rules, and understanding the potential consequences is paramount. Let’s examine the regulatory framework in effect as of 2025, including the obligation to take currency, the associated costs of managing it, and the requirements for enterprises to process such transactions.

Whether you operate a brick-and-mortar store, a restaurant, a business that provides services, or an ecommerce site, being aware of the cash limit and the relevant rules will help you stay compliant and avoid fines.

What’s in this article?

• The current Italian regulatory framework
  
• Penalties for exceeding the €5,000 threshold
  
• Who is exempt from the cash limit in Italy?
  
• Cash vs. digital payments in Italy
  
• The obligation to accept cash payments
  
• Cash payments made by businesses
  
• Cash management costs
  

The current Italian regulatory framework

In 2025, the limit for cash payments in Italy remains €5,000—the 2025 Budget Act didn’t raise the cap. You can pay or receive funds in banknotes and coins up to €4,999. For settlements of €5,000 or more, traceable methods such as bank transfers, credit or debit cards, or checks are mandatory.

This is based primarily on Article 49 of Legislative Decree 231/2007, which aims to prevent money laundering and the financing of terrorism. The regulation has been amended several times over the years, with the threshold fluctuating as follows:

• From 2010 to 2011: €5,000
  
• From August 13, 2011, to December 5, 2011: €2,500
  
• From December 6, 2011, to the end of 2015: €1,000
  
• From 2016 to 2020: €3,000
  
• From July 2020 to the end of 2022: €2,000
  
• Since January 2023: €5,000
  

These changes reflect shifts in political orientations and an effort to fight tax evasion without overburdening shoppers and small businesses.

Prohibition on fraudulently splitting payments

Dividing a payment over €5,000 into smaller amounts to remain under the threshold is prohibited. Artificial splitting breaks down a single transaction into several smaller settlements to circumvent the cash limit.

Splitting a cash payment is allowed if every installment genuinely corresponds to a defined period, is below €5,000, and is not the result of artificial fractioning intended to get around regulations. For example, if a purchase agreement involves multiple installments over time, amounts under €5,000 can be paid in banknotes, provided they are specified in the contract and do not serve as a means to avoid the cap.

What is the Anti-Money Laundering (AML) cash limit in 2025?

In 2025, the ceiling for cash settlements in Italy is €5,000. For costs of €5,000 or more, traceable methods such as bank transfers, credit or debit cards, other electronic options, or nontransferable checks are required.

Penalties for exceeding the €5,000 threshold

In 2025, if one goes past the €5,000 cap in Italy, both payer and payee become liable and could face significant sanctions. Legislative Decree 231/2007 (Article 63), as amended by Law 197/2022, outlines the consequences:

• For payments up to €250,000, the fine ranges from €1,000 to €50,000, depending on the seriousness of the infraction and its specific circumstances
  
• For amounts over €250,000, the fines start at €5,000 and can be as high as €250,000
  

Certain parties, such as notaries, accountants, attorneys, lenders, financial advisors, and real estate agencies, are legally obligated to report suspicious transactions, including cash payments exceeding the legal limit, to the Financial Intelligence Unit (UIF). Failing to flag these violations can result in sanctions ranging from €3,000 to €15,000—regardless of direct involvement. This measure aims to get professionals involved in the prevention of tax evasion and money laundering.

Going past the limit can bring additional consequences besides fines:

• In-depth tax audits: The violators’ activities could be subject to in-depth audits.
  
• Investigation into the source of funds: In the case of large cash payments, the legality of the funds can be called into question.
  
• Report to the UIF: Banks and financial institutions can report suspicious transactions to the authorities.
  

Who is exempt from the cash limit in Italy?

The 2019 Budget Act (Law of December 30, 2018, No. 145, Article 1, Paragraph 245 outlines exceptions to the cash limit, specifically for transactions between retailers or travel agencies and foreign citizens who are not Italian residents. If your business falls under one of these categories, it can take currency of up to €15,000 provided the following conditions are met:

• The buyer is a foreign citizen living outside Italy
  
• The payment is for the purchase of goods or services
  
• The business must inform the Italian Revenue Agency (Agenzia delle Entrate) ahead of time that they intend to accept cash, and specify the bank account where the money will be placed
  
• You must obtain a copy of the customer’s passport and a signed statement confirming nonresidency
  
• Cash is placed into the specified bank account by the end of the business day following the transaction
  

Cash vs. digital payments in Italy

Because Italy has long relied on banknotes and coins, its transition to digital payments has been slower than in other European countries. A milestone was hit in 2024—for the first time, online settlements outweighed cash ones.

Research from the Innovative Payments Observatory at Politecnico di Milano shows online settlements reached €481 billion in 2024 (43% of customer spending), while cash transactions declined to 41%. Wire transfers, direct debits, and checks made up the remaining 16%. This reversal is the result of years of technological progress and a growing openness to digital checkouts among both retailers and customers, as reflected in the most common payment methods in Italy.

Contactless payments played a decisive role, accounting for nearly 90% of in-store electronic operations in 2024, with a total value of €291 billion—up 19% year over year. The popularity of smartphone- and wearable device–based payment methods is also on the rise, totaling €56.7 billion in 2024 (a 53% increase).

The number of active point-of-sale (POS) terminals in Italy has climbed to 3.5 million, with POS software solutions letting enterprises accept payments through tablets and smartphones growing fast. Today, 53.5% of small businesses prefer card transactions.

The obligation to accept cash payments

Domestic and European regulations require businesses to accept cash. Article 693 of the Criminal Code prohibits the refusal of legal tender, backed by the European Commission Recommendation 2010/191/EU. Here are some of its key provisions:

• Cash settlements can’t be refused unless both parties agree on a different option.
  
• As a rule, retailers must accept payment in euro banknotes and coins. Refusal is allowed only in certain cases, based on the good faith principle—for instance, if no change is available.
  
• Retailers must take high-denomination banknotes. Refusal is allowed only when motivated by a valid reason—say, if the note’s face value is disproportionate compared to the amount owed.
  

Cash payments made by businesses

In Italy, there is no fixed limit on how much cash a business can deposit into its bank account. However, financial institutions monitor these placements and can report them under AML laws when necessary.

Under the UIF issued on March 28, 2019, lenders and other financial intermediaries have to submit monthly reports to them, detailing all cash transactions exceeding €10,000 within a single month, including those made through multiple deposits of at least €1,000. Payments under €10,000 can still arouse suspicion if they don’t align with the customer’s profile.

Here’s what operators need to keep in mind:

• Frequent or large cash settlements could draw the attention of banks and the authorities, especially if they are not consistent with the business’s typical financial activity.
  
• Splitting payments seemingly to circumvent reporting requirements can be considered questionable and flagged to the UIF.
  
• The inability to document the source of the funds might result in further inquiries by the Agenzia delle Entrate and the financial police (Guardia di Finanza).
  

Operators must:

• Always keep records such as receipts, invoices, and additional supporting documents of where cash deposits come from
  
• Not split payments to stay below the reporting thresholds
  
• Turn to a professional, such as an accountant or a tax advisor, to make sure transactions comply with current regulations
  

What is the deposit threshold that triggers inquiries?

In Italy, there’s no strict legal cap on how much cash you can deposit into your bank account, but lenders and the authorities can step in on some situations:

• Exceeding €10,000 per month
  Financial institutions are required to notify the UIF if a person—whether an individual or a business—makes cash deposits of €10,000 or more in a single month, regardless of whether the placements are made as multiple transactions of €1,000 or more.

• Inconsistency with the customer’s financial profile
  Authorities might be notified of payments under €10,000 if they appear inconsistent with someone’s declared income, profession, or activity. Banks are required to carry out subjective risk assessments.

• Frequent or split payments
  Dividing cash deposits to stay below the reporting cap can be construed as an attempt to circumvent regulations and might result in a suspicious transaction report (segnalazione di operazione sospetta).

Cash management costs

A 2020 Bank of Italy survey found that a single cash transaction costs €0.35, which is less than the two most common alternatives: debit cards (€0.59) and credit cards (€1.01). Yet, if you take the average operation value into account, cash ends up being 1.8% more expensive because of the following expenses:

• Banking operations: Withdrawals, deposits, transfers
  
• Investments in security: Anti-theft systems, safes, cash-in-transit services
  
• Investments in equipment: Counterfeit banknote detectors
  
• Staffing: Counting, managing, and transporting cash
  
• Opportunity: Time spent managing cash instead of other, more productive tasks
  
• Losses caused by theft, robbery, and counterfeit notes
  

These costs often go unnoticed in daily operations, but they accumulate over time and can significantly impact a business’s profitability. Despite operation commissions, electronic payments can be more cost-effective in the long run, especially with the expansion of low-cost POS systems and integration with electronic registers. Traceable transactions also reduce the risk of errors and simplify tax reporting and compliance.

That’s another reason why many businesses encourage the use of traceable payment methods, although they are required to take cash. Stripe Terminal enables online and in-person settling, making it straightforward and secure for businesses such as yours to accept cards, contactless payments, and digital wallets.

Precertified card readers and centralized management through the Stripe Dashboard enable you to simplify operations, enhance reconciliation, provide a smooth, up-to-date payment experience, and free up valuable resources to grow your business.