Cash limitations in Belgium
Payments in cash for transactions taking place in Belgium are limited to a maximum of 3.000 euro as from the 1st of January 2014 whereby no transaction for the sale of goods or the provision of services taking place in Belgium can be paid in cash beyond the following cumulative restrictions:
- A maximum of 10% of the transaction price (the amount on the invoice) or the service provided can be paid in cash. This limitation includes pre-payments and partial payments; and
- no cash payment can exceed 3.000 euro
It is not possible to divide one transaction of more than 3.000 euro into sales of 3.000 euro. Transactions which are connected are considered as one transaction. This includes deposits and partial payments.
In order to explain in practise what the results are of these restrictions, two examples will be given, one example with a transaction price of 10.000 euro and one example with a transaction price of 600.000 euro.
Transaction price is 10.000 euro. A maximum of 10% of the transaction price can be paid in cash with a maximum of 3.000 euro. 10% of 10.000 euro is 1.000 euro. This does not exceed 3.000 euro. The maximum amount that can be paid in cash is 1.000 euro.
Transaction price is 600.000 euro. A maximum of 10% of the transaction price can paid in cash with a maximum of 3.000 euro. 10% of 600.000 euro is 60.000 euro. This exceeds 3.000 euro wherefore the maximum amount that can be paid in cash is 3.000 euro.
Keep in mind that cash payments for immovable goods are totally prohibited since 1 January 2014. Consequently, you are not allowed to pay or receive cash money in advance when buying or selling buildings of office space.
When the payment in cash is higher then the legally allowed amount, both the seller and the buyer will be liable to pay a criminal fine from 250 up to 225.000 euro.
The cash limits as explained above only apply for transactions made in Belgium.