Albania to limit cash payments to €5,000/month in 2026 as cash circulation hits €4.6 billion

Albania is facing a surge in cash circulation outside the banking system, which has now reached a record €4.6 billion, according to official data. Compared to October 2024, this marks an increase of €575 million—raising concerns over tax evasion, informal economy, and untraceable transactions.

Why is this important: Massive cash use in goods and service payments makes it difficult for tax authorities to track money flow, opening doors to fiscal evasion and weakening financial transparency.

Context: To curb this trend, the government has proposed new cash restrictions starting in 2026. Under the new draft law, citizens will be allowed to use a maximum of 500,000 ALL (approximately €5,000) in cash per month. Meanwhile, businesses will face stricter limits, with no cash transactions above 100,000 ALL allowed between business entities—down from the current 150,000 ALL.

Banking sector objects: The Albanian Association of Banks has opposed the proposed cash ceiling for individuals, calling it too high. In a parliamentary hearing, Secretary Spiro Brumbulli suggested the monthly cash limit should be reduced to €600–700, aligned with Albania’s minimum wage and regional standards.

POS expansion planned: The government also plans to require all businesses to install POS (point-of-sale) terminals by the end of 2026 to encourage card payments and reduce reliance on physical cash.