Cash payments for rent abolished as of April 1: Bank transfers to become mandatory
As of April 1, cash payments for rent will no longer be permitted, as all rental transactions will be required to be carried out exclusively through banks.
The long-standing practice of paying rent “by hand” will be officially abolished, as the Independent Authority for Public Revenue (AADE) will now automatically cross-check declared rental amounts with bank transaction records.
According to clarifications issued by the Hellenic Property Owners Federation (POMIDA), every lease agreement must now include a “bank payment clause.”
The bank account (IBAN) used for rent payments must belong exclusively to the property owner and must be declared on the AADE’s dedicated platform. Payments made to third parties—such as relatives, lawyers, or other intermediaries—will not be recognized for tax purposes.
Heavy Penalties for Non-Compliance
Failure to comply with the new measure will result in the loss of significant benefits:
- Property owners: Loss of the 5% tax deduction on rental income.
- Tenants: Ineligibility for housing allowances and the new annual benefit of up to €800.
- Businesses: Rent expenses will not be deductible, leading to a substantial increase in taxable income.
At the same time, POMIDA warns that rental income deposited in bank accounts remains subject to seizure by the state, as such funds are not protected by the €1,250 non-seizable threshold.
The new regulation aims to increase transparency, combat tax evasion, and ensure full traceability of rental transactions.
