Can I pay €10,000 in cash by splitting it in two?
You cannot — and splitting is precisely what the law anticipates. A cash transaction exceeding €7,200 is prohibited, and this applies to private individuals too, not only to businesses. The key point: the law looks at the transaction, not the number of payments — whether settled in one operation or in several linked parts. Two payments of €5,000 do not evade the ceiling. Real estate may not be paid for in cash at all, whatever the amount. And from 1 April 2025, a business location whose previous-year turnover exceeded €50,000 must offer at least one cashless payment option.
📋 The rules
- Cash: no more than €7,200 per transaction
- It applies to private individuals too
- The law looks at the transaction, not the payments
- Real estate — never in cash
- Penalty: 15% of the transaction sum
🔓 Exceptions
- Credit institutions and licensed payment-service providers are excluded
- Wholesalers may accept cash only under a special regime, having notified the revenue service
- Businesses must declare cash dealings above €1,500 a month with the same counterparty
⚠️ Penalties & fines
The penalty is a percentage — which is what makes it hurt. A cash transaction above the permitted limit can attract 15% of the transaction sum. A prohibited €10,000 cash deal therefore costs €1,500 — more than most people save by avoiding a transfer. For an undeclared transaction the penalty is generally 3% for a natural person, 5% for a legal entity and 10% in certain sectors. Late declaration adds a warning or €25–700. And do not believe this applies only to firms: the revenue service states plainly that the prohibition extends to natural persons not carrying on economic activity. What differs is the reporting duty, not the ceiling itself.
📎 Official sources
- VID · Cash transaction declaration →
- likumi.lv · Law on Taxes and Duties →
- likumi.lv · Administrative Liability Law →
❓ Frequently asked
Does the limit apply to private individuals?
It does. The revenue service states plainly that the prohibition on cash transactions above €7,200 extends to natural persons not carrying on economic activity. The reporting duties differ; the ceiling does not.
Does splitting the payment help?
It does not. The law looks at the underlying transaction, whether it is settled in one operation or in several linked parts. Two payments of €5,000 do not get you around the €7,200 ceiling.
Can I buy a car with cash?
Yes, if the transaction does not exceed €7,200. Above that, cash settlement is prohibited. Real estate may not be paid for in cash at all, regardless of the amount involved.
How large is the penalty?
For a transaction above the permitted limit, 15% of the transaction sum. A prohibited €10,000 cash deal can therefore cost €1,500 in penalty, on top of the money already paid over.
Must a shop accept cards?
From 1 April 2025, a business location whose previous-year turnover exceeded €50,000 must offer at least one cashless payment option alongside accepting cash.
🔎 Common searches
What people search to land here:
- “cash payment limit latvia”
- “7200 euro cash latvia”
- “can i pay cash for a car latvia”
- “penalty for a cash transaction latvia”
- “declaring cash transactions latvia”
- “real estate paid in cash latvia”