The legislation imposes clear limits for cash payments, both for individuals and legal entities, in order to ensure transparency and combat tax evasion.
- 💸 Real estate transactions in Romania are subject to strict limits on cash payments, set differently for individuals and legal entities, to increase transparency and prevent tax evasion.
- 🏠 For individuals, the maximum cash payment limit in a real estate transaction is 50,000 lei, and any amount exceeding this level must be paid through banking methods.
- 🏢 For legal entities, the rules are much more restrictive, with limits of 5,000-10,000 lei for receipts and payments, and non-compliance with these ceilings may lead to significant fines, tax investigations, or even cancellation of the transaction.
🏢 The cash payment limit for individuals in real estate transactions
The cash payment ceiling between individuals for the sale of an apartment
The current legislation sets a maximum amount up to which individuals may make cash payments. This limit applies both to the buyer, when paying for the property, and to the seller, when receiving the money. These restrictions apply to any type of property, from apartments for sale and houses to land and commercial spaces.
Regardless of whether you are looking for a studio apartment, a 2-room apartment, a more spacious home such as a 3-room apartment, or even a 4-room apartment or a garden apartment, the cash payment rules remain the same: the cash transaction limit between individuals is 50,000 lei per transaction.
💰 What happens to the remaining money if the selling price exceeds the cash payment ceiling?
If the transaction amount exceeds the legal limit, the payment must be made through banking methods such as bank transfer or payment order. This ensures clear documentation of the transaction and simplifies tax verification.
Failure to comply with these limits may result in fines, which is why it is important that all parties involved know and respect the rules.
Important! Splitting the sale-purchase operation in order to avoid the imposed ceilings is prohibited.
⚖️ The limit or ceiling of cash payments and receipts for legal entities
The amount of the cash payment ceiling between legal entities
The ceiling for legal entities is considerably lower than for individuals. This means that most commercial real estate transactions must be carried out through banks. This rule applies to all types of legal entities, including companies, associations, foundations, and authorized individuals.
- In 2025, the cash receipt ceiling between legal entities is limited to 5,000 lei when collecting from another legal entity.
- Regarding the payment ceiling between legal entities, a maximum of 5,000 lei/person may be paid in cash, but not more than a total ceiling of 10,000 lei/day.
The amount of the receipt and payment ceiling between legal entities and individuals
Payment operations between legal entities and individuals are also limited:
- 10,000 lei from a person for receipts between legal entities and individuals;
- 10,000 lei to a person for payments between legal entities and individuals.
🏦 How much or up to what amount can be paid in cash at the notary for real estate transactions?
Payments made at the notary for real estate transactions follow the same general rules regarding cash limits. The notary cannot accept or facilitate cash payments that exceed the maximum amount allowed by law, regardless of the type of transaction or the parties involved.
- In practice, if the price of a property is higher than the legal limit for cash payments, the buyer must show that they have paid through legal banking methods.
- The notary will request proof of the transfer, such as the payment order or bank confirmation, before signing the sale-purchase contract.
It is important to know that the notary is obliged to verify whether these limits are respected and to refuse signing the documents if they suspect that illegal cash is being used.
This responsibility is part of the notary’s role in ensuring the legality and transparency of real estate transactions, thus protecting both the parties involved and the integrity of the legal system.
Cash payments between individuals and legal entities – Differences and regulations
The rules for cash payments differ depending on the type of parties involved in the transaction. These differences take into account the risks and complexity specific to each type of entity.
If the transaction takes place only between individuals, the higher limit intended for this category applies. But if one of the parties is a legal entity, the stricter limits for companies apply. This rule applies regardless of whether the legal entity is the buyer or the seller.
A special situation arises in mixed transactions, when an individual buys from a company or vice versa. In these cases, the company must comply with the stricter limits, which affects the payment method for the entire transaction.
The cash transaction limit and the cash payment ceiling: a few practical aspects
The application of cash payment limits has several practical aspects that must be considered.
- First of all, the limit is calculated for each transaction, not per day or per month. This means that each real estate purchase is analyzed separately, according to the legal limit.
- An important aspect is that the limits refer to the total amount paid in cash, not just to the price of the property. This includes all additional costs paid in cash, such as commissions, notary fees or other transaction-related expenses.
- Thus, even if the property price were, hypothetically, below the legal limit, adding the additional costs may lead to exceeding the ceiling.
Failure to comply with these limits may result in severe penalties, including fines of 25% of the amount exceeding the ceilings shown above, cancellation of the transaction, and even criminal charges in serious cases.
Tax authorities carefully verify compliance with these rules and may initiate checks or investigations if there are suspicions. Therefore, it is important that all parties have clear documentation about the payment method and keep records of all financial transfers made in the real estate transaction.
Alternatives to cash payment in real estate transactions
For transactions that exceed the legal cash limits, there are several safe and efficient payment options.
- Bank transfer is the most commonly used method, offering safety, speed, and clear documentation of the transaction. This option allows large amounts to be transferred safely and helps comply with the law.
- The payment order is another good solution, preferred by many because it offers more control over the timing and conditions of the transfer. The bank cheque, although rarely used today, remains a valid option in certain situations.
- For buyers who do not have all the money, mortgage loans offer a complete solution, allowing the purchase of the property while complying with all legal requirements.
These alternatives ensure compliance with the law and also provide additional protection for all parties involved in the real estate transaction.
To avoid complications and penalties, it is important to get proper information and plan ahead how you will make the payment in a real estate transaction. Always check the current limits for cash payments, consult a financial expert or a lawyer specialized in real estate transactions to ensure that you comply with all legal requirements.
