Greece moves to restrict cash payments above €500, tightening anti–tax evasion rules

Greece is introducing a sweeping overhaul of cash transaction rules, mandating electronic payments for all purchases above €500 in a bid to clamp down on tax evasion and increase financial transparency.

The measure is included in a draft bill submitted by the Greek Ministry of National Economy and Finance, which aims to tighten enforcement of payment regulations and eliminate loopholes in cash-based transactions.

Mandatory Digital Payments Above €500
Under the new framework, any transaction valued at €500 or more must be completed exclusively through electronic means such as card payments, bank transfers, e-banking, or digital wallets.

Officials say the rule applies to the total value of a transaction, not individual invoices—closing a common loophole where payments were previously split into smaller cash amounts to avoid detection.

Crackdown on “Splitting” Invoices
The reform explicitly targets the practice of dividing payments into multiple smaller receipts to bypass cash restrictions. Even if separate invoices are issued, the total value of the transaction will determine payment method compliance.

For example, a €1,000 purchase cannot be split into cash and card payments, nor can a €1,500 transaction be broken into smaller €500 segments to avoid electronic payment requirements.

Heavy Penalties for Violations
The new system introduces strict penalties for non-compliance. Businesses and professionals found violating the rules will face fines equal to twice the amount paid in cash, significantly increasing the financial risk of illegal cash transactions.

Authorities believe this penalty structure will serve as a strong deterrent against underreporting and informal cash dealings.

Strengthening Financial Transparency
Officials argue that the reform will improve traceability of financial flows and strengthen tax enforcement mechanisms, as cash-heavy transactions have long been associated with tax evasion risks in Greece.

By channeling all major payments through the banking system, the government aims to enhance auditing capabilities and reduce the shadow economy.

Broader Push Toward a Cashless Economy
The move reflects a broader European trend toward digital payments and financial digitization, as governments seek to modernize tax systems and reduce reliance on physical cash.