Last updated 14 October 2026. By Demetre E. Katsouris, Managing Partner, Katsouris Law Firm.
The short answer: from 1 January 2026, under Law 5222/2025, rent on every residential lease in Greece — new or existing — must be paid by transfer or deposit into a bank account that the landlord has declared to the tax authority. The account must be in the landlord’s own name. A landlord who takes cash loses the 5% allowance against rental income, cannot prove payment in a dispute, and invites the tax authority to disbelieve the declared rent. For a landlord living abroad the rule has one practical consequence: a Greek or EU bank account in your name, declared on the tax portal, before the lease is signed.
What the rule says
Rent must be paid into an account held by the landlord and recorded in the lease declaration. All leases are covered, including those signed years ago; there is no minimum amount; and the obligation is the landlord’s, which is why the penalty — loss of the allowance — falls on the landlord. The tenant’s position is simpler: a bank transfer is proof of payment; a cash payment is not, and a tenant who pays cash after January 2026 is exposed to a claim that the rent was never paid.
What the landlord loses by taking cash
The 5% allowance. Rental income is taxed with no deduction for actual expenses, but a flat 5% is deducted for wear and repairs. That deduction is now conditional on every month’s rent for the year having been paid through the bank by 31 December. One cash month costs the allowance for the whole year.
Evidence. In an eviction or arrears claim the landlord proves what was paid and what was not. Bank records do that. A notebook does not.
Credibility with the tax authority. The lease declaration states the rent. If the declared account shows nothing arriving, the authority assumes either that the rent is undeclared or that the lease is fictitious, and audits.
There is also a point the law makes clear in the other direction: rent paid into the account is not protected from seizure in the way salary and pension are. A landlord with tax debts should settle them or arrange them before the rent starts arriving.
Setting it up from abroad
1. The account. A Greek bank account in the landlord’s name is the simplest. Opening one from abroad requires the Greek tax number, identification, proof of address and source-of-funds documents, and usually a visit or a power of attorney to a lawyer who attends; allow four to eight weeks. An account at an EU bank in the landlord’s name can be declared instead; confirm with your accountant that the bank’s details are accepted by the portal.
2. The declaration. The account is entered on the tax portal and linked to the lease declaration. Existing leases should have their declarations amended to add the account; a lease declared before 2026 without an account is not compliant.
3. The lease. New leases should state the account, the day of the month, and that payment by any other means is not accepted. For existing leases a short written addendum, signed by both parties and uploaded to the declaration, does the same.
4. The manager. A property manager can collect and chase rent, but it cannot pass through the manager’s account. The tenant pays the landlord; the manager’s fee is paid separately by the landlord.
5. Year-end check. Before 31 December, confirm that twelve payments are on the statement. A missed month, if the tenant paid cash, cannot be cured.
The tax that applies to what arrives
From tax year 2026 rental income is taxed at 15% up to €12,000, 25% from €12,001 to €24,000, 35% to €36,000 and 45% above. The new 25% band replaced the 35% that previously applied above €12,000. The 5% allowance comes off before the bands are applied. A non-resident landlord declares the income in Greece and again at home, with treaty credit for the Greek tax.
Frequently asked questions
My tenant insists on cash. Can I refuse to renew? The lease runs its three-year minimum regardless. You can insist on the bank account for the remaining term; the law is on your side and the addendum records it.
My tenant is a company. Does the rule apply? The rule is written for residential leases. A company letting a flat for its staff is a residential use; take advice on the specific case.
Can the account be a joint account with my spouse? The account must be the landlord’s. Where spouses co-own the property, each declares their share and the account should match the declared landlord.
I let through a platform short-term. Does the rule apply? Platforms pay by transfer in any event, and since May 2026 they report what they pay. The rule is aimed at long-term cash tenancies.
This article is general information, not legal advice; it reflects the position on the date above and may change.
To set up a compliant account and lease for a property you let in Greece, contact us at info@katslaw.eu or +30 210 8982 864.
