Last updated 14 October 2026. By Demetre E. Katsouris, Managing Partner, Katsouris Law Firm.
The short answer: every residential lease in Greece must be declared electronically to the tax authority by the landlord and accepted by the tenant; the same applies when it ends. A residential lease runs for a minimum of three years whatever the contract says. Since 1 January 2026, rent must be paid by bank transfer to an account declared to the tax authority; cash is no longer recognised. Rental income is taxed in Greece whether or not you live here, at 15%, 25%, 35% and 45% depending on the amount, and a Greek tax return is required every year. If the property was bought for a Golden Visa, it cannot be let on short-term platforms at all.
Declaring the lease
The lease is a private written agreement; it does not need a notary. What makes it effective towards the tax authority is the electronic declaration on the tax portal. The landlord files the declaration with the lease details — parties, property, rent, duration, deposit, and now the bank account into which rent will be paid — and the tenant accepts it through their own account. The declaration is the basis on which the landlord’s income is assessed. An energy performance certificate must exist for the property before the declaration can be filed.
An undeclared lease exposes the landlord to penalties and, more practically, to difficulty in proceeding against a tenant who stops paying. We file the declaration for owners abroad as part of the lease.
Rent must go through the bank
From 1 January 2026, rent on every residential lease, new or existing, must be paid by bank transfer or deposit into an account held by the landlord and declared to the tax authority. A landlord who continues to accept cash loses the flat 5% deduction allowed against rental income for wear and repairs, and a cash payment does not count as proof of payment in a dispute. The account must be in the landlord’s own name; it cannot be a relative’s or a manager’s account.
For an owner abroad this means a Greek bank account, or an EU account that the tax authority will accept, must be in place before the lease is signed. Opening one from abroad is possible but takes time, so it belongs at the start of the letting process, not the end.
Minimum duration
A residential lease is for a minimum of three years by law, even if the contract says one. A tenant can leave earlier only if the contract permits it or the landlord agrees; a landlord cannot end the lease before the three years except for the tenant’s breach. A contract can provide for longer. Commercial leases have their own rules.
Deposits
A deposit of one or two months’ rent is customary. It is held by the landlord, recorded in the lease and in the electronic declaration, and returned at the end subject to deductions for damage beyond normal wear. It is not rent, and a tenant who treats it as the last months’ rent is in breach.
Deposits are paid to the landlord’s account, not in cash and not to the lawyer, unless the lease specifically provides otherwise.
Ending the lease
When the tenancy ends, by expiry, agreement or the tenant’s departure, the landlord declares the termination on the tax portal. Until that declaration is filed, the lease remains live in the tax authority’s records and the landlord continues to be treated as receiving the rent. The termination declaration records the date and the return of the deposit. We see owners abroad assessed on rent for apartments that have been empty for a year because nobody filed the termination.
The practical sequence at the end of a tenancy: inspection, return of keys, settlement of utilities, return of the deposit less agreed deductions, signature of a short termination agreement, and the electronic declaration.
Long-term or short-term
A letting of under 60 days, with nothing more than accommodation and linen provided, is a short-term rental. It requires registration of the property in the tax authority’s short-term register, an 11-digit registration number (AMA) displayed on every listing, and compliance with the minimum standards that apply to every short-term rental since 1 October 2025: liability insurance from a Greek insurer, an electrical safety certificate, smoke detectors and fire extinguisher, first-aid kit, pest-control documentation. Since 20 May 2026 the platforms verify the registration number and report host income to the tax authority, and delist properties without one. A climate resilience fee is collected per night. Income is declared under the same bands as long-term rent.
No new short-term registrations are being issued in the 1st, 2nd and 3rd municipal districts of central Athens, and that freeze has been extended to central Thessaloniki; further areas are under discussion. A registration number is personal to the owner and does not pass to a buyer on sale. Check the current position for the specific district before buying for that purpose. Glyfada, Voula and Vouliagmeni are outside the frozen zones.
A property acquired for a Golden Visa may not be let short-term and may not be sub-let. The penalty is a fine of €50,000 and revocation of the permit. A long-term lease is permitted.
Tax on rental income for non-residents
Rental income from Greek property is taxed in Greece regardless of where the owner lives. For individuals the rates from tax year 2026 are: 15% on annual rental income up to €12,000; 25% on the part from €12,001 to €24,000; 35% from €24,001 to €36,000; and 45% above that. Until 2025 everything above €12,000 was taxed at 35%, so a landlord earning €20,000 a year now pays €3,800 instead of €4,600. There is no deduction for actual expenses; the flat 5% allowance applies, and only if the rent was paid through the bank.
A separate incentive runs to 31 December 2026: an owner who lets a home of up to 120 sq.m. on a long lease of at least three years, after it was vacant or used for short-term rental, can obtain a three-year exemption from income tax on that rent. Conditions apply and the lease must be declared in time.
Double-taxation treaties between Greece and most countries of the diaspora give credit in the home country for Greek tax paid, so the income is not taxed twice, but it must be declared in both. An owner abroad needs a Greek accountant or tax representative who files the annual return, the property declaration whenever the property changes, and the lease declarations. ENFIA property tax is assessed separately every year on all owners, let or not.
What a property manager cannot do
A property manager can find tenants, collect rent and arrange repairs. Without a power of attorney, they cannot sign the lease on your behalf, file the tax declarations, or represent you with the tax authority. Rent cannot be routed through the manager’s account. Owners abroad usually combine a manager for the practical side with a lawyer or accountant for the declarations.
Frequently asked questions
My tenant has stopped paying. What do I do? With a declared lease and a written demand, the landlord can apply to the court for an order for payment and eviction. Act at the second missed month, not the sixth. Bank records of the rent received are now the evidence, which is one reason the cash ban helps landlords.
Can I let to a company for its employees? Yes. The lease is with the company, the declaration is filed in the same way, and the rules for residential use still apply to the premises.
Do I pay VAT on rent? Not on residential rent.
My tenant still pays me in cash. Is the lease invalid? The lease is not invalid, but the payment does not count as a bank-evidenced payment, you lose the 5% allowance, and the tax authority treats the account you declared as the only valid route. Fix it from the next month.
This article is general information, not legal advice; it reflects the position on the date above and may change.
For a lease, a termination or a tax question on a property you let in Greece, contact us at info@katslaw.eu or +30 210 8982 864.
