In a major legislative push to combat the informal economy and enhance financial transparency, the Tax Administration of Kosovo (ATK) announced that starting today, Monday, June 1, 2026, cash transactions exceeding €2,000 between businesses and individuals are strictly prohibited.
According to the official directive, any transaction crossing this monetary threshold must now be executed exclusively through the formal banking system or recognized electronic payment methods.
Strict Enforcement and Penalties
The new regulatory measure marks a decisive shift in Kosovo’s domestic commercial framework, aiming to bring the country closer to European Union anti-money laundering and financial monitoring standards.
In its public enforcement notice, the ATK urged all economic operators and citizens to immediately conform to the legal shift to avoid severe institutional penalties:
“From June 1, 2026, payments over €2,000 between businesses and individuals are not allowed to be made in cash and must be carried out only through the banking system or other electronic forms of payment. Respect the limit set by law and avoid fines. Do not pay cash above the allowed limit,” the ATK statement reads.
Key Operational Takeaways
- The Threshold: Any single transaction or interconnected payments totaling €2,000 or more falls under the new restriction.
- Scope: The rule applies universally to transactions between businesses (B2B) as well as transactions between businesses and individual consumers (B2C).
- Approved Alternatives: Payments must be routed via bank transfers, credit/debit card processors, or certified digital and electronic payment applications.
Local financial analysts note that while the transition may initially slow down high-value transactions in traditional markets—such as used vehicle sales, construction materials, and luxury retail—it will significantly reduce tax evasion, provide a transparent audit trail for corporate accounting, and strengthen the overall integrity of Kosovo’s financial sector.
