"As a rule, euro banknotes and coins must be accepted in all transactions, whatever their nature. The creditor has the duty to accept any type of banknote or coin, and cannot, as a general rule, refuse it", explains the BdP on its website.
The banking supervisor clarifies that "eventual refusals of notes and coins in euros as a means of payment can only be founded on good faith (for example, in case of disproportion between the value of the note presented by the debtor in relation to the amount owed to the creditor of the payment) or upon agreement of the parties to use another means of payment".
"This understanding reflects what is set out in the Recommendation of the European Commission, of March 22, 2010, on the scope and consequences of the legal tender of banknotes and coins in euros", says the BdP.
However, in Portugal, there are legal restrictions when paying with cash:
Defined in Law No. 92/2017, of August 22nd - which requires the use of a specific means of payment in transactions involving amounts equal to or greater than €3,000, amending the General Tax Law and the General Regime of Tax Offenses;
In Decree-Law no. 246/2007, of June 26, "according to which no one is obliged to accept, in a single payment, more than 50 current euro coins, with the exception of the State, through the Treasury, the Banco de Portugal and credit institutions whose activity consists of receiving deposits from the public", explains the BdP.
"No sanctions are foreseen for refusal to pay banknotes and coins in euros. However, this refusal has consequences regarding the contractual relationship existing between the parties. Under the terms of the Portuguese Civil Code, the debtor fulfils the obligation when performing the instalment to which it is bound, and the creditor may even incur in arrears when, without justifiable reason, it does not accept the instalment offered to it", according to the BdP website.