Greece is set to enforce major changes to how rent is paid starting April 1, 2026, as the government mandates that all rent payments must go through a bank account under the owner’s name. The move, outlined in Law 5264/2024, updates previous legislation requiring electronic rent payments and aims to increase transparency in the rental market.
Under the new rules:
- The bank account must belong to the property owner and be registered with the Independent Authority for Public Revenue (AADE) via a dedicated online platform.
- Payments to third-party accounts, including family members, lawyers, or management companies, will no longer be recognized.
- For joint accounts, the owner’s name should appear first, and in shared rentals with multiple landlords, each must declare their own IBAN to receive the correct portion of rent.
Failure to comply carries serious financial consequences:
- Property owners will lose the 5% tax deduction on rental income.
- Tenants will be ineligible for housing subsidies, including the new annual rent allowance of up to €800.
- Businesses paying rent without bank transfers cannot claim it as a deductible expense, potentially increasing their tax burden significantly. For instance, a company paying €700 monthly in rent without using a bank account could lose €8,400 in deductible expenses annually.
The government emphasizes that these measures are intended to modernize the rental system, prevent undeclared payments, and ensure that tax deductions and housing benefits are correctly administered.
