A new anti-fraud law came into effect on July 10 this year restricting cash payments to 1,000 euros.
The law is one of the measures to prevent and fight against tax fraud and applies to all transactions carried out in cash. Contravening it carries heavy fines.
According to the law, if you are a party to a cash transaction of more than 1,000 euros, (presumably at the insistence of the other party) you can file a report (denuncia) and thus avoid a fine.
Editor´s Note.
My apologies to readers who may have been inconvenienced by this new law. I was aware of the law but omitted to publish it in Nexonr. Today at the bank, they refused a payment of over 1,000 euros in cash, citing the law. In order to use cash for transactions over 1,000 euros you can pay the money into your account and then carry out your transaction through your account.
