Can I pay any amount in cash in Hungary?
As a private person yes — Hungary's love of cash enjoys legal protection; the cap lives in the corporate world. As a consumer no cash ceiling exists: you can buy even a car in cash (large transactions attract anti-money-laundering identification). The law even protects cash acceptance in basic services. The hard cap binds businesses obliged to hold payment accounts (companies, VAT-registered sole traders) between each other: at most 1.5 million HUF per contract per calendar month in cash — above that, both payer and payee owe a 20 % default penalty. Contract-splitting (carving one deal into several 'contracts') is the tax office's favourite hunting ground. Private persons between themselves (used cars, deposits) may deal freely in cash — though smart buyers pick the bank route for big sums: traceability is gold in disputes.
📋 The key rules
- Private individuals: no limit — big sums attract AML identification
- Between businesses: 1.5M HUF / contract / month cash cap
- Exceeding it: 20 % penalties for payer and payee alike
- Contract-splitting: the tax office sees through it — one deal, one cap
- Shops: refusing big notes and card-only tills are separate (policy) questions
🔓 Exceptions
- In consumer-to-business deals (car showrooms) the corporate cap doesn't bind your payment
- Some deal types (real estate via lawyer escrow) run the bank route in practice anyway
⚠️ Penalties
Breaching the corporate cash cap costs both sides 20 % of the excess as default penalties; private payers face no sanction — refusing AML identification, though, sinks the transaction.
📎 Official sources
- Tax authority (NAV) · Guidance on the 1.5M HUF cash cap (HU) →
- Önadózó · Cash-payment rules between firms (HU) →
- PROAB · Cash-payment restrictions in Hungary (HU) →
❓ Frequently asked questions
Can I buy a car for 10 million in cash?
As a private person yes — no limit; the dealer identifies you under AML rules and may ask about the money's origin for large sums.
Can my company pay suppliers in cash?
At most 1.5 million HUF per contract per month — above that, bank transfer; exceeding brings 20 % penalties on both sides.
Can several invoices dodge the cap?
No — the cap binds per contract: payments belonging to one deal add up, and artificial splitting draws tax-office sanctions.
Can a shop refuse my 20,000 note?
Practically it may (change capacity), but cash payment must stay available in the basic circle — card-only tills need a cash path alongside.
🔎 What people actually search
Real search phrases for this topic.
- “cash limit private person hungary”
- “1.5 million cash between companies”
- “cash penalty 20 percent”
- “buying car in cash hungary”
- “cash acceptance mandatory”