Fiscal Council Analysis: Bulgaria Could Raise Cash Payment Limit to €10,000

Bulgaria is among the EU member states that maintain a relatively low threshold for cash payments in business transactions, creating practical difficulties for companies, entrepreneurs, and consumers.

In view of the upcoming implementation of the EU Anti-Money Laundering Regulation, which will introduce a harmonised maximum limit of €10,000 for business transactions across the Union from 2027, the government may review its current approach and align national rules with the new standard, according to an analysis by the Fiscal Council.

The EU regulation is designed to provide both flexibility and predictability. While member states may retain stricter limits, the harmonised ceiling ensures that businesses across the Union operate under predictable conditions, reducing administrative burdens, facilitating cross-border trade, and improving financial efficiency.

Maintaining a lower threshold than the EU maximum could place Bulgarian enterprises at a competitive disadvantage compared with counterparts in other member states.

Furthermore, the regulation balances financial transparency with anti-money-laundering objectives. While the limit applies to business transactions, payments between private individuals remain unrestricted, recognising that the use of cash in everyday life is both legitimate and often necessary.

This demonstrates that the EU framework is sufficiently flexible to guard against illicit financial activity without unnecessarily restricting legitimate business operations. By raising the limit to €10,000, Bulgaria could align itself with European standards while maintaining mechanisms to monitor and prevent suspicious transactions.

Raising the national threshold will also reduce unnecessary administrative burdens. Currently, businesses that comply with the lower limit often have to split payments or use multiple financial instruments to comply with the law, leading to additional costs and delays.

A €10,000 limit will simplify transactions, reduce operational costs and support a more dynamic business environment, which is particularly important for start-ups looking to expand in the EU market.