Cashless Rent Payments Ignite Landlord–Tenant Conflicts in Greece

[right]Photo: Pxhere

Tensions between landlords and tenants have escalated in Greece amid rising rents and a shortage of available apartments. In some cases disputes have even turned violent, Ekathimerini reports. A new law that makes all rent payments cashless has further increased friction in the sector.

Experts note that a reported attack by a property owner on a tenant family remains an isolated incident, yet it reflects growing discontent. Heated debates are spreading on social media over the rule that all rent must be paid via bank accounts starting January 1, 2026. The requirements were inserted into the updated Customs Code to curb the informal economy and increase transaction transparency.



The new rules apply to all leases and subleases—both residential and commercial—regardless of whether the tenant is a natural person or a legal entity. The payment must be made to the landlord’s bank account registered with the Independent Authority for Public Revenue (AADE). If a landlord receives rent by any other method, they lose the wear-and-tear allowance. Currently the taxable base is reduced by 5%, and tax is calculated on 95% of rental income. Once the new rules take effect, tax will be due on 100% of income, increasing the tax burden to 15%–45%, depending on the bracket.

Tenants will also face serious consequences. Paying in cash will make them ineligible for state benefits and for the rent-expense rebate program scheduled to launch in November. For businesses, noncompliance may raise the taxable base as well.



The property owners’ association POMIDA recommends landlords revise all existing and new contracts, adding a clause on method and timing: transfers must be made exclusively to the landlord’s account within the first five days of each month, and proof of payment is the bank receipt or transfer slip. A tenant’s refusal to pay cashlessly will be treated as non-payment, allowing the owner to seek eviction.

Landlords must notify AADE of their account number as soon as the online service goes live. Payments should go only to the personal account. In cases of joint ownership, each co-owner’s details must be provided, with their name as a primary recipient. All 12 monthly payments should be credited before year-end, otherwise the owner may lose the tax deduction.

POMIDA also warns that the €1,250 seizure-protected limit for salary and pension accounts does not apply to rental income inflows. This means the state may collect taxes directly from such inflows if the owner fails to meet obligations.



The market has used cash payments for years, often hard-coded into older contracts. Some owners refuse bank transfers, citing age and fear of using terminals. There are also cases of rent hikes on the grounds that tenants will benefit from the new subsidy.

Analysts are split. Some warn that subsidies could inflate prices further and urge focusing on expanding housing supply. Others argue for penalties and surcharges—for example, double taxation for five years for landlords who raise rents for subsidy recipients. For investors, the reform package—together with higher standards for rental housing—may compress yields.