Opinion of the European Central Bank of 8 May 2012 on limitations on cash payments (CON/2012/33)
Date: 2012-05-08
Institutions: European Central Bank
Subjects: Spain, commercial transaction, fight against crime, national law, paper money, payment system, tax evasion

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 8 May 2012 

on limitations on cash payments 

(CON/2012/33) 

Introduction and legal basis 

On  26  April  2012  the  European  Central  Bank  (ECB)  received  a  request  from  the  Spanish  Ministry  of 

Finance and Public Administrations for an opinion on a proposal for a draft Law on the amendment and 

adjustment  of  tax  and  fiscal  regulations  to  strengthen  actions  for  preventing  and  fighting  tax  fraud 

(hereinafter the ‘draft law’). 

The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 

Functioning of the European Union and the second indent of Article 2(1) of Council Decision 98/415/EC 

of 29 June 1998 on the consultation of the European Central Bank by national authorities regarding draft 

legislative provisions, as the draft law relates to means of payment. In accordance with the first sentence 

of  Article 17.5  of  the  Rules  of  Procedure  of  the  European  Central  Bank,  the  Governing  Council  has 

adopted this opinion. 

1.  

Purpose of the draft law 

1.1  The  draft  law  implements  a  number  of  measures  aimed  at  combating  tax  evasion.  One  such 

measure is a limitation on the amounts that can be paid in cash for transactions where at least one 

of the parties is acting in a professional or business capacity. 

1.2  The limit is set at an amount of EUR 2 500, with a higher limit of EUR 15 000 if the payer is an 

individual who, (i) can demonstrate that he/she is not a tax resident in Spain, and (ii) does not act in 

a professional or business capacity. In addition, these limitations shall not be applied to payments 

and deposits made with credit institutions. 

2. 

General observations  

2.1  The ECB notes that the draft law is in compliance with Union law1, and in particular with recital 19 

of  Council  Regulation  (EC)  No  974/98,  which  states  that  ‘limitations  on  payments  in  notes  and 

coins,  established  by  Member  States  for  public  reasons,  are  not  incompatible  with  the  status  of 

legal  tender  of  euro  banknotes  and  coins,  provided  that  other  lawful  means  for  the  settlement  of 

1  

See paragraph 5 of Opinion CON/2002/24, reiterated in paragraph 2.3.2 of Opinion CON/2010/36 and paragraph 2.2 of 
Opinion CON/2010/79. All ECB opinions are published on the ECB’s website at www.ecb.europa.eu. 

 
 
 
 
 
                                                 
ECB-PUBLIC 

monetary  debts  are  available’.  The  ECB  acknowledges  that:  (i)  such  other  lawful  means  for  the 

settlement  of  monetary  debts,  other  than  cash,  are  available  in  Spain;  and  (ii)  the  draft  law’s 

objective  of  combatting  tax  evasion  qualifies  as  a  public  reason  outweighing  the  impact  of  the 

limitations on cash payments.  

2.2  However,  limitations  on  payments  in  cash  should  be  proportionate  to  the  objectives  pursued  and 

should  not  go  beyond  what  is  necessary  to  achieve  such  objectives.  Any  impact  of  the  proposed 

limitations should be carefully weighed against the public benefits expected to be derived from the 

proposed restrictions on payments in cash. The competent authorities should ensure that the effects 

of these measures do not go beyond what is necessary for achieving the objective of combating tax 

evasion. 

This opinion will be published on the ECB’s website.  

Done at Frankfurt am Main, 8 May 2012. 

[signed] 

The President of the ECB 

Mario DRAGHI 

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