Greece’s rent pay is undergoing a major shift from April with all payments needing to be made through bank transfer.
The country is enforcing new rules from 1 April with all rent payments needing to be done via bank transfer, with penalties for non-compliance affecting tax deductions, housing allowances, and business expense claims.
The pay must go to a bank account under the owner’s name, with the move aiming to increase transparency in the rental market as well as modernise the system.
The new rules dictate that:
-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 adhere to the new rules would see property owners lose the 5% tax deduction on rental income, and tenants become ineligible for housing subsidies, including the new annual rent allowance of up to €800 ($AUD 1344).
The report added that businesses paying rent without bank transfers cannot claim it as a deductible expense, which could potentially increase their tax burden significantly.
The government stated the measures are also intended to prevent undeclared payments, and ensure that tax deductions and housing benefits are correctly administered.