Germany has traditionally been a cash country. In 2023, half of all transactions in Germany were made using bills and coins. With the popularity of cash, you may wonder: what is the maximum you can pay in cash in Germany? This article explains current cash regulations, changes coming in 2027, and the benefits of a cash upper limit. We also show how digital payment schemes can help make businesses future-ready.

What’s in this article?

• What is the upper limit for cash payments in Germany, and when does it apply?
  
• Why are there upper limits for cash payments?
  
• What are the advantages of digital payment schemes?
  
• Does cash have a future in Germany?
  
• How Stripe Payments can help
  

What is the upper limit for cash payments in Germany, and when does it apply?

An upper limit for cash payments refers to the maximum amount of cash a person is permitted to use in a single transaction. Germany does not currently have a statutory upper limit for cash payments, as of July 2025.

However, a person paying more than €10,000 in cash is obligated to prove their identity. According to Section 8 and Section 10 of the Money Laundering Act (GwG), businesses are required to collect and store the following information:

• Full name
  
• Date and place of birth
  
• Citizenship
  
• Current home address
  

Purchases of precious metal are subject to separate regulations. Those purchasing precious metals must provide proof of identity for cash purchases of €2,000 or more. Since April 2023, it has also been illegal to use cash to buy real estate.

There are no cash limits for transactions between private individuals.

Current regulations in other EU countries

Current regulations on upper limits for cash payments vary across Europe. For example, Austria, Sweden, Ireland, and Cyprus do not have upper limits for cash payments. Some countries—such as Germany—require proof of identity for cash payments over a certain amount. Others distinguish between private and commercial payments or have special regulations for specific goods. The European Consumer Centre Germany offers a comprehensive country-by-country overview of cash payment upper limits.

For instance, taxpayers in France can pay a maximum of €1,000 in cash. However, cash payments between private individuals are not subject to any limits.

Spain has also established a €1,000 limit for transactions involving businesses. Customers who are not residents of Spain for tax purposes can make cash payments up to a value of €10,000.

In Italy, the upper limit for all payments is €5,000, a rule introduced in January 2023.

When will the upper limit for cash payments in Germany change?

The new regulation will be enforced starting on January 1, 2027. A unified cash upper limit of €10,000 per transaction will apply across the EU. However, EU countries that already have lower upper limits will not be required to raise them. The new regulation will also not apply to transactions between private individuals. For example, a customer buying a used car from a private owner will still be able to pay for their vehicle in cash.

The European Parliament resolved the new upper limit in April 2024, with the Council consenting to the resolution at the end of May 2024. The rule was published in the Official Journal of the European Union on June 19, 2024, as part of the EU’s money laundering package. The regulation goes into effect three years after this date, which is in 2027.

Why are there upper limits for cash payments?

Upper limits for cash payments help combat money laundering, the financing of terrorism, and tax evasion. By introducing an upper limit on cash, the EU seeks to ensure that large transactions are traceable and transparent. That’s because big-volume cash payments that cannot be traced allow fraudulent actors to conceal illegal flows of finance. Criminals can exploit this anonymity to move illegal funds and hide their origins. These untraceable transactions pose a risk to the integrity of the finance system and can encourage criminal activities.

EU Regulation 2024/1624 also contains a resolution on establishing an anti-money laundering and terrorist financing body. The job of the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) will be to coordinate cooperation between national supervisory authorities and to ensure that all EU countries fulfill their obligations in the fight against organized crime. The AMLA will also monitor areas considered money laundering and terrorist financing risks. This includes markets for real estate, precious metals, and cryptocurrencies.

What are the advantages of digital payment schemes?

While cash continues to be popular in Germany, electronic payments are steadily increasing. In 2023, 35.5% of all sales made in the German retail sector were paid in cash, a 2% decrease year-over-year. Meanwhile, sales made using card payments rose to nearly €300 billion during the same period, an almost 62% increase. This upward trend demonstrates that digital payments offer many benefits for businesses and customers.

Security

Digital payments offer a high level of security. Unlike cash payments—where transactions are largely anonymous—digital payments leave behind tangible trails. Businesses can retrace and clearly allocate every payment, and customers can worry less about risks such as theft or cash loss. Digital payment platforms also offer a range of security mechanisms, such as tokenization, biometric authentication, and two-factor authentication. These features offer comprehensive protection against fraud and identity theft.

Flexibility

Another advantage of digital payment schemes is their flexibility. Businesses can offer their customers a range of payment options, including debit cards, credit cards, digital cards stored in digital wallets, Single Euro Payments Area (SEPA) transfers, or mobile payment apps. Customers can then select their preferred payment method, both online and in-store.

Efficiency

Digital payments make transaction processing fast. Unlike cash payments, there’s no need to count money manually. This can save time, especially with large transactions. Businesses in Germany will see the biggest benefit in their internal processes. Digital transactions can make bookkeeping, payment reconciliation, and evaluations more efficient through automatic recording.

Transparency

Digital payments can give customers a better overview of their earnings and spending. Customers get payment confirmations instantly and can access transaction histories anytime via their banking or wallet apps. Businesses also benefit from a transparent data pool, allowing them to track payment flows in real time, compile reports, and make decisions informed by data.

Does cash have a future in Germany?

Despite the rise of digital payments, cash should remain a popular payment method in Germany for the foreseeable future. This is especially true for everyday purchases and payments between private individuals. The German government’s Coalition Agreement for the 21st legislative period contains an explicit commitment to the continued use of cash. It states, “We shall ensure that, moving forward, everyone may decide for themselves how they pay for everyday transactions.”

However, the government’s goal is genuine freedom of choice when it comes to payments. In the future, this means businesses should offer both cash and at least one digital payment option. If this stated intention becomes law, businesses and service providers will have to offer at least one electronic payment option, such as card or mobile payment.

This could be good news for customers because they would be able to choose to pay in cash or by card or mobile, regardless of location and industry. For brick-and-mortar retail businesses, this planned legal requirement could mean restructuring their organizations and upgrading their tech. There is not currently a concrete timeline for this regulation (as of July 2025). The Coalition Agreement discusses a “gradual rollout,” which could mean a transition period or exemptions.

Nevertheless, businesses should start considering digital payment options. Digitizing payments now can help prepare for future legal requirements, increase customer satisfaction, and generate additional revenue.

How Stripe Payments can help

Stripe Payments provides a unified, global payments solution that helps any business—from scaling startups to global enterprises—accept payments online, in person, and around the world.

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• Optimize your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment UIs, access to 125+ payment methods, and Link, a wallet built by Stripe.
  
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Learn more about how Stripe Payments can power your online and in-person payments, or get started today.