The Fiscal Council has called for a doubling of the cash payment limit

Bulgaria must significantly raise the cash payment threshold, aligning it with the future EU-wide limit of €10,000 (approximately BGN 20,000). The Fiscal Council reached this conclusion in its latest analysis on financial efficiency and administrative burden in the country.

According to experts, the current limit of approximately €5,000 (10,000 BGN) puts Bulgarian entrepreneurs at a disadvantage compared to their counterparts in much of the European Union.

The proposals stem from Regulation (EU) 2024/1624, which aims to tighten anti-money laundering measures while introducing predictability in the single market. Starting in 2027, a harmonized threshold of 10,000 euros for business transactions will take effect across the entire EU.

Maintaining a lower threshold than the EU maximum could put Bulgarian businesses at a competitive disadvantage,” warns the Fiscal Council.

According to them, businesses in Bulgaria are currently forced to deal with unnecessary administrative complexity that slows down trade turnover.

End of the “fragmentation” of payments

One of the main arguments for the change is the reduction of operational costs. Currently, companies are often forced to split their payments into several transactions or use complex financial instruments to avoid breaking the law. This leads to additional bank fees and delays, which weigh most heavily on small businesses and startups.

Raising the limit to €10,000 would simplify daily operations without compromising financial transparency, the Council believes, noting:

A limit of €10,000 would simplify transactions, reduce operational costs, and support a more dynamic business environment, which is particularly important for startups looking to expand their operations in the EU market.”

Experts emphasize that the European framework is sufficiently flexible – it restricts business transactions but does not impose limits on payments between individuals, recognizing cash as a legitimate means of payment in everyday life.

Map of restrictions in Europe

The analysis reveals a mixed picture across the EU, with Bulgaria falling into the group of countries with more restrictive regimes: With a limit of €5,000, Bulgaria is on par with Italy, Lithuania, Slovakia, and Slovenia, but significantly behind countries that allow greater freedom for cash payments.

• No limit: Germany, Austria, Cyprus, Estonia, Finland, Hungary, Ireland, Luxembourg, Malta, the Netherlands, and Sweden;
• High limits: Czech Republic (€10,500), Croatia (€10,000), Spain (€10,000);
• Strict limits: Greece (€500), France (€1,000 for residents), Romania (€1,000 per day).

According to the Fiscal Council, raising the national threshold will signal a modernization of the business environment. The proposal is expected to spark debate in the legislature, as it balances two key objectives: effectively combating the shadow economy and providing “breathing room” for legitimate businesses amid deepening European integration.

We recall that in 2023, there was even an idea to lower the threshold to 5,000 or 8,000 BGN specifically to bring the economy into the open. The proposed changes were never adopted.

Translated with DeepL.