Cracking Down on Tax Evasion

Taxpayers, including property buyers, who choose to violate the law by making cash payments exceeding 500 euros each will face penalties that can potentially be twice the value of the transaction, as the new tax law provisions have been put into effect.

Previously, the fine amounted to 100 euros. The government had intended to lower the limit for cash transactions to 300 euros in order to curb tax evasion, but the European Central Bank did not approve this proposal.

Under the new law, it is also now prohibited to purchase property using cash, and the entire transaction must be conducted through a bank.

The penalty for such violations is equivalent to 10% of the cash amount paid, ranging from 10,000 to 500,000 euros.