Moldova limits cash payments: New €80K cap for real estate
Starting in April, Moldova will enforce a new law restricting cash payments for high-value transactions to combat tax evasion and money laundering.
Any transaction exceeding €80,000 must be conducted via bank transfer, with stricter scrutiny on the source of funds.
Despite these new regulations, real estate experts believe the number of property sales will remain steady, as the main obstacles to homeownership continue to be high prices and low housing supply.
"Transactions above €80,000-€82,000 will only be processed through bank transfers. Banks will now require stricter and more recent documentation proving the origin of funds. The transition period will be challenging, and transactions will become more complex," explained real estate expert Victor Cernomorcenco.
Radu Marian, President of the Parliamentary Committee on Economy, emphasized that the law is necessary to reduce cash circulation and lower fraud risks.
"Encouraging cashless payments helps curb tax evasion, reduces business costs by simplifying transactions, and limits opportunities for money laundering. We postponed this law to refine its implementation. When transactions are conducted in euros, an additional currency conversion fee applies," stated Radu Marian.
Under the new law, which takes effect on April 1, cash transactions between private individuals will be capped at 100 times the national average salary—approximately 1.6 million lei (€80,000) for real estate transactions and 50 times the average salary (€42,000) for vehicle purchases. Any transaction exceeding these limits must be completed electronically.
Translation by Iurie Tataru
