Starting January 1, 2026, paying rent in cash will no longer be legal in Greece – for both new and existing leases. A major new law (Law 5222/2025) will require all residential rent payments to be made exclusively through bank accounts officially registered with the Greek tax authority (AADE). The goal is to increase transparency, ensure proper tax declaration, and bring Greece’s rental market fully into the digital age.
Key Changes for Tenants and Landlords
- Only Bank Transfers Allowed
- Rent must be paid by bank deposit or transfer to the landlord’s declared IBAN.
- Cash, cheques, or payments to third parties (lawyers, relatives, property managers) will not count as valid payment.
- Payment must reach the landlord’s account within the first five days of each month.
- Any bank transfer fees are the tenant’s responsibility.
- Consequences for Non-Compliance
- Landlords who accept cash or off-the-books payments will lose a valuable 5% tax deduction for property depreciation and repairs.
- Tenants who pay outside the banking system risk losing eligibility for housing benefits and other state allowances.
- Landlord Obligations
- Must declare a dedicated bank account (in their own name only) with AADE specifically for receiving rent.
- Joint accounts are allowed only if the landlord is listed first.
- In co-owned properties, each owner must have their own registered account and receive their share directly.
- To preserve the 5% tax deduction, every single monthly rent payment for the year must be made via bank transfer by December 31 of that year.
- Important Warning for Landlords
Unlike salaries or pensions, rental income deposited into the registered account has no protected minimum amount. If a landlord owes taxes or other debts to the state, AADE can immediately seize incoming rent the moment it hits the account.
New Rental Income Tax Scale (applies from 2026 tax year)
The reform also revises tax rates on rental income by adding a new middle bracket:
| Annual Rental Income | Tax Rate |
|---|---|
| Up to €12,000 | 15% |
| €12,001 – €24,000 | 25% |
| €24,001 – €36,000 | 35% |
| Above €36,000 | 45% |
The new 25% bracket significantly increases the tax burden for landlords earning between roughly €1,000 and €2,000 per month in rental income.
What Property Owners Should Do Now
The Hellenic Property Federation (POMIDA) urges landlords to:
- Update all existing lease agreements with the new mandatory bank-payment clause.
- Open or designate a personal bank account solely for rent receipts.
- Wait for AADE’s upcoming announcement on the exact registration procedure and complete it as soon as it opens.
Greece’s rental market is about to become far more transparent – and far stricter – starting January 1, 2026. Both tenants and landlords should prepare now to avoid penalties, lost deductions, or sudden seizures of rental income.
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