Greece’s New Rental Payment & Refund Rules from 2026: 8 Key Points Landlords and Tenants Must Know

• 20 July, 25

Starting January 1, 2026, all rent payments and refunds in Greece must be made through the banking system. This significant policy change affects tenants, landlords, and businesses alike. Here are the 8 most important updates to keep in mind:

1. All Rent Payments Must Be Made via Bank Transfer

From 2026 onwards, all rental payments — including subleases — must be transferred to a landlord’s bank account registered with the Independent Authority for Public Revenue (AADE). Cash payments will no longer be legally accepted.

2. Payment Methods Vary Based on Amount

If rent is over €400:

• Payment must be made via e-banking or ATM transfer
• Bank counter deposits are not allowed

If rent is €400 or less: Bank counter deposits are permitted

3. What Happens If Rent Is Not Paid via Bank?

From 2026, failure to pay rent through bank transfer will lead to significant consequences:

For landlords:

• Lose tax deductions on:
  • Home repair/renovation expenses (5%)
  • Infrastructure-related costs (e.g., drainage, flood protection)
  • Compensation payments made to tenants

For tenants:

• Lose eligibility for:
  • Government housing subsidies
  • One-month rent refunds
  • Student housing support

For businesses renting property: Cannot deduct rent as a business expense for tax purposes

4. 2024 Rent Refund Policy (For This Year Only)

The government will refund 1/12 of actual rent paid in 2024 as a one-time payment by November 2025, applicable to:

• Primary residences
• Student housing

Refund caps:

• Primary residence: Up to €800, plus €50 per dependent
• Student housing: Up to €800

In 2024, rent does not need to be paid via bank to qualify for the refund.

5. Who Is Eligible for the Refund?

Based on 2024 annual income:

• Single tenant: ≤ €20,000
• Married couple, no children: ≤ €28,000
• Families with children: Add €4,000 per child
• Single-parent families: €31,000 base limit + €5,000 for each of the second and third children

6. Tax Authorities Will Automatically Cross-Check Rent Data

From 2026, the AADE will automatically verify actual rent payments to determine:

• Eligible refund amounts
• No need to submit legal documents (e.g., eviction notices) for unpaid rent
• Uncollected rent will not be taxed

7. Tenants Must Use the Correct Contract Number

To receive the refund, tenants must correctly input the rental contract number (code 081) in the E1 tax return. This must be the number from the latest version of the lease, not the original 2025 contract. Errors must be corrected by September 15, or the refund will be denied.

8. Landlord and Tenant Declarations Must Match

The AADE will cross-reference:

• The tenant’s declared rent expenses
• The landlord’s declared rental income

If the landlord declares part of the rent as unpaid and does not correct this by September 30, 2025, that portion won’t count toward tenant refunds.

Greece’s new rent payment policy marks a major shift toward transparency and digital accountability in the real estate sector. Both landlords and tenants must ensure full compliance with the new rules to avoid losing valuable tax benefits and government support.

Cre: news.b2green.gr