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The Greek government recently announced a groundbreaking policy: Starting in 2026, cash payments for rent will be completely banned nationwide, and all rental transactions must be processed through the banking system! What’s the reasoning behind this major reform? How will it impact landlords and tenants? And what key details should you be aware of? Here’s everything you need to know.
According to the latest draft legislation from the Ministry of Finance, all future rental contracts in Greece must include the landlord’s bank account details, and tenants will be required to pay rent exclusively through:
Electronic banking (e-banking)
IRIS system (Greek digital payment network)
Bank transfers (via bank branches)
For years, Greece’s real estate sector has been a major challenge for tax enforcement:
Widespread Cash Transactions – Many landlords avoid declaring rental income by accepting cash payments or underreporting rental amounts.
High Regulatory Costs – Tax authorities spend significant resources tracking cash transactions, making enforcement inefficient.
Massive Tax Revenue Losses – Estimates suggest hundreds of millions of euros in tax revenue are lost annually due to undeclared rental income.
A senior Greek Finance Ministry official stated: "Every bank transaction leaves a digital trail, making it far more likely that rental income will be properly declared—effectively closing the tax evasion loophole that cash payments enable."
Landlords must register rental income properly or face penalties.
Tenants gain stronger legal protection, as bank records serve as proof of payment.
Tax authorities will have real-time visibility into rental transactions, improving compliance.
The law is expected to take effect in 2026, with further details on enforcement mechanisms to be released. Stay tuned for updates as Greece moves toward a fully traceable rental economy!
