Greece will ban cash payments for rent starting April 1, requiring all tenants to pay landlords through bank transfers or face financial penalties and loss of state benefits.
Under the new rules, tenants who continue to pay rent in cash will lose eligibility for housing-related subsidies and a yearly rent-related benefit. Landlords who accept cash payments will forfeit a 5% tax deduction on rental income, effectively increasing their tax burden.
The reform allows tax authorities to monitor rental transactions more closely. By linking declared rental income to bank account activity, the Independent Authority for Public Revenue will be able to carry out automatic cross-checks to ensure compliance.
To meet the new requirements, all rental agreements—whether new or renewed—must include a clause specifying payment via bank transfer and the landlord’s IBAN. Rent payments must be deposited into an account held in the landlord’s name, not a third party, to ensure proper verification.
Landlords are also required to declare their bank account details electronically to tax authorities through a designated process. In cases of joint accounts, the landlord must be listed as the primary account holder to facilitate checks.
For properties with multiple owners, each landlord must declare a separate account to receive their share of the rent, unless future regulations allow payments into a shared account.
Authorities also advise landlords to ensure that all 12 monthly rent payments are made within the same tax year. Failure to do so could result in the loss of tax benefits tied to rental income. Additionally, rental income is not automatically protected under existing bank account seizure limits, unless the account has been officially designated as a protected account with tax authorities.