Luís Neves paid 5,000 euros in cash for home improvements in instalments. What does the law say about cash payments?

Luís Neves, Minister for Internal Affairs, admitted that the payments made to Construbarcelos for building work on a property in the Alentejo were made in cash – 5,000 euros, in instalments.

However, the General Tax Law currently in force doesn't allow the payment or receipt of cash in amounts of 3,000 euros or more. This limit cannot be circumvented by making split payments.

As Mariana Moreira explained to Observador: "This limit applies to the total value of the sale or provision of services, including VAT, and not to each payment considered in isolation”. The lawyer of RSN Advogados Tax Department also emphasised that "splitting the payment does not circumvent the prohibition, as all payments associated with the same sale or provision of services are considered collectively”.