Renting in Greece? Cash Payments End on Jan. 1, 2026

Greece is preparing for major changes in how rent is paid and declared, as a new law will eliminate cash payments for all residential leases beginning January 1, 2026. The measure applies to both new and existing rental agreements and aims to modernize the country’s rental system by promoting transparency and consistent tax reporting.

Mandatory bank transfers for all rent

Under the reform, part of Law 5222/2025, rental payments will be allowed only through a bank account that has been officially registered with Greece’s Independent Authority for Public Revenue (AADE). Cash handovers, which are still common in parts of the rental market, will no longer be recognized as valid payments.

Landlords who continue receiving rent outside the banking system will lose a 5% tax deduction related to property damage and depreciation. Tenants who persist with off-the-books payments may become ineligible for certain state benefits and allowances. Officials describe the shift as a necessary modernization step for both sides of the rental relationship.

New obligations for landlords

The Hellenic Property Federation (POMIDA) has issued guidance to help property owners comply with the upcoming rules, highlighting several key obligations:

Updated lease terms: Existing and new contracts must replace traditional rent-payment clauses with a clear provision stating that the tenant must pay exclusively via bank deposit or transfer to the landlord’s IBAN account within the first five days of each month. Transfer fees, if any, will be the tenant’s responsibility. Failure to make an on-time bank payment will be treated as non-payment and gives the landlord the right to pursue the matter through any lawful means.

Account ownership requirements: Rental payments must go into an account held solely by the landlord. Accounts belonging to lawyers, property managers, or relatives may no longer be used.

Registration with AADE: Landlords must declare the bank account that will receive the rent through an AADE process expected to be announced soon. Verification of payments will rely on this registration.

Joint accounts and multiple owners: If rent is paid into a joint account, the landlord’s name must appear first among the account holders. In cases where a property has multiple landlords, each must register a separate account and receive their proportional share directly.

Annual payment requirement: To keep the 5% tax deduction, all rent installments must be paid through the banking system within the same calendar year and no later than December 31.

Seizure rules for rental income: While wages and pensions in Greece benefit from a minimum protected amount that cannot be seized, rental income does not fall under the same safeguard. As a result, if a landlord has outstanding debts to the state, tax authorities can access the registered bank account and seize rent payments as soon as they are deposited.

Changes to property income taxation

The reforms also introduce a new tax bracket for rental income starting in the 2026 tax year. The updated rates will be:

15% for income up to €12,000
25% for €12,000.01 to €24,000
35% for €24,000.01 to €36,000
45% for income above €36,000

The addition of the 25 % bracket effectively raises the tax burden for middle-income rental earnings.

Source: tovima.com