Bulgaria's Fiscal Council has recommended increasing the national cash payment limit for business transactions to ?10,000. According to the Council, Bulgaria currently maintains a relatively low threshold of ?5,000, which poses practical challenges for companies, entrepreneurs, and consumers, particularly in light of upcoming EU regulations on financial transactions.

From 2027, Regulation (EU) 2024/1624 will introduce a harmonized maximum cash payment limit of ?10,000 for business transactions across the European Union. While Member States may implement stricter limits, the new ceiling is intended to provide predictability and simplify cross-border commerce. Aligning Bulgaria's rules with this standard would help businesses operate under consistent conditions, reduce administrative complexity, and improve financial efficiency. Maintaining a lower threshold could leave Bulgarian businesses at a disadvantage compared to counterparts in other EU countries.

The regulation also aims to balance transparency and anti-money laundering measures. While the limit applies to business transactions, payments between individuals remain unrestricted, acknowledging that cash is still an essential tool for everyday life. By raising the national limit to ?10,000, Bulgaria would harmonize its approach with EU standards while retaining the ability to monitor and prevent suspicious activity.

An increase in the threshold would also ease administrative burdens. At present, businesses must often split payments or use multiple financial instruments to comply with the law, leading to extra costs and delays. A ?10,000 limit would streamline transactions, reduce operating expenses, and support a more dynamic business environment, particularly benefiting start-ups and companies seeking to expand across the EU market.

For context, cash payment limits vary widely across the Union. Austria, Cyprus, Denmark, Estonia, Finland, Germany, Hungary, Ireland, Luxembourg, Malta, Netherlands, and Sweden have no limits. Belgium sets a ceiling at ?3,000, France allows ?1,000 for residents and ?15,000 for non-residents, Greece restricts it to ?500, Italy and Lithuania to ?5,000, Latvia ?7,200, Poland ?3,267, Portugal ?3,000, Romania ?1,000 per day, Slovakia and Slovenia ?5,000, and Spain ?10,000. Croatia and the Czech Republic already align with higher limits at ?10,000 and ?10,500, respectively.

Raising Bulgaria's limit would harmonize the country with the EU's emerging framework, support business flexibility, and ensure Bulgarian enterprises can compete effectively in the regional market.