From 2026 onwards, each rental will need to be paid electronically, with the tenant depositing the agreed amount into the landlord’s account.

Cash payments or “hand-to-hand” transactions will no longer be recognized for tax purposes and, as currently under consideration, could result in strict penalties for both the landlord and the tenant. The regulation has not yet been finalized but is a central initiative by the Ministry to curb tax evasion, which is evident in income reports from property rentals.

The measure is based on findings showing a large discrepancy between declarations and reality. According to data from the Independent Authority for Public Revenue (AADE), the average declared income for renting a primary residence in 2023 was just 255 euros per month, whereas the actual rental costs in Attica far exceed 800 or even 1,000 euros. Cross-checks are already underway for cases where property owners report evidently understated rents, while the new framework aims to create a fully controlled and digital system for the housing market.

Bank payments are not a new tool. Since 2020, they have been used in commercial leases, where payment via bank transfer is a prerequisite for expense recognition. The same logic is now being extended to residential leases, with the financial authorities believing that the overall picture of the market will become more transparent and representative.

Speaking at the 3rd Real Estate Conference, the Minister of National Economy, Kyriakos Pierrakakis, referred to the transparency deficit, stating: “We agree, I believe, that the average rent in the country is not 255 euros. It is clear that the actual figures differ, and we need tools to accurately reflect reality.” With a focus on inspections and cross-checks, the government aims to close a significant tax gap costing millions in losses each year.

However, implementing this measure won’t be without problems. Experience shows that fictitious leases might still occur, with tenants and landlords agreeing on lower amounts “officially” and continuing to make cash payments as they have until now. Additionally, many citizens—mainly the elderly and vulnerable social groups—are not familiar with electronic transactions, and small landlords who have operated without accounting support may face new costs, burdens, and procedural obstacles.

The system will require constant monitoring of bank accounts, tracking of transactions, and compatibility with tax declarations—something that is not straightforward for everyone.

Authorities from the Ministry of Finance acknowledge that the measure will be accompanied by strict sanctions. As they emphasize, there will be both “carrots” and “sticks.” An example is the existing regulation on real estate transactions, which imposes a 10% fine on transactions paid outside the banking system. The minimum fine is 10,000 euros and can go up to 500,000 euros, with the possibility of contract cancellation in cases of cash payments. Ministry officials state that AADE is already conducting such audits and will expand this approach to rental agreements as well.