Greece Introduces New Rent Payment Regulation: Cash Payments to Be Fully Banned Starting 2026

• 4 June, 25

To strengthen oversight of the real estate market and curb tax evasion, Greece’s Ministry of Finance is promoting a major reform: starting in 2026, rent payments will be completely prohibited in cash and must be made through bank transfers. This new regulation will apply to all residential and commercial leases nationwide.

Important Notice for Landlords and Tenants: Rent Payments to Become Fully Digital

According to a draft bill soon to be submitted by the Ministry of Finance, all rental contracts must specify the landlord’s bank account details. Whether through online banking (e-banking), the IRIS payment system, or in-person bank transfers, tenants will be required to use official channels to pay rent — cash payments will no longer be allowed.

Officials from the Ministry explained that for years, many landlords have used cash payments to evade taxes, resulting in significant undeclared rental income. This behavior not only causes tax revenue losses but also complicates oversight by tax authorities. Introducing electronic payment methods will create complete transaction records, effectively combating tax evasion at its source.

Impact on Landlords and Tenants

This reform will have far-reaching effects on both parties involved in rental agreements:

• For landlords, bank payment records can serve as official income proof, helping to standardize tax compliance and potentially improve credit evaluations when applying for loans or transferring property in the future.
• For tenants, making rent payments via bank transfer leaves clear records, which helps protect their rental rights and reduces the risk of disputes over rent payments.

Promoting Transparency and Digitalization in the Real Estate Market

This policy is a key part of the Greek government’s broader push for economic digitalization, specifically targeting the real estate sector, which carries a high risk of tax evasion. The Ministry plans to develop a more intelligent oversight system by cross-verifying data with banking systems, enhancing tax tracking efficiency.

Currently, Greece’s personal income tax rates on rental income are as follows:

• Annual income from €0 to €12,000: taxed at 15%;
• Annual income from €12,001 to €35,000: taxed at 35%;
• Annual income above €35,000: taxed at 45%.

It is also worth noting that the Ministry is considering adjustments to this tax structure, possibly introducing new progressive tax brackets or modifying existing rates. In addition, to encourage the use of vacant properties, the government is weighing a three-year tax exemption policy.

Policy Announcement Timeline and Future Developments

According to official sources, the reform package is expected to be officially unveiled at the Thessaloniki International Fair this summer. This move will not only help crack down on unreported income in the real estate sector but also support Greece’s long-term economic sustainability.

Cre: 希中网