Mandatory Rent Payments via Electronic Means in Cyprus from 1 July 2026
- Jun 11
- 3 min read
Are you a rental property owner? This is important news for you. Take action now!
The Cyprus Tax Department has reminded taxpayers that, from 1 July 2026, rent relating to immovable property in Cyprus must be paid exclusively through electronic means. The approved methods are bank transfer, debit card, credit card or any other recognised electronic payment method.
This change is part of the wider tax reform and is designed to improve transparency, create a clear payment trail and reduce non-compliance in the rental market. The rule applies to both natural and legal persons, regardless of the amount of rent or the type of property use.
What the rule says
Under Article 48A of the Assessment and Collection of Taxes Law (L.4/1978), rental income for property in Cyprus cannot be accepted in cash or by any non-electronic method after the effective date. The Tax Department has made clear that landlords and other rent recipients may not accept rent in any form other than the approved electronic channels.
In practical terms, this means the following payment methods are acceptable:
- Bank transfer.
- Debit card or credit card.
- Other recognised electronic payment methods.
Who is affected
The obligation applies broadly to all natural and legal persons. That means private landlords, tenants, companies and any other parties involved in rent payments for immovable property in Cyprus should treat this as a mandatory compliance issue, not just an accounting preference.
The rule also applies regardless of:
- Rent amount.
- Whether the property is residential, commercial, or otherwise used.
- Whether the tenant is an individual or a company.
Why this matters
The main purpose of the rule is traceability. Electronic rent payments create a clear audit trail, making it easier for the Tax Department to verify compliance and for taxpayers to support their records. This is also consistent with the broader direction of Cyprus tax reform and increased reporting discipline.
For tenants and businesses, the practical risk is that non-compliant rent payments may create tax exposure and possible disallowance issues. For landlords, accepting cash after the deadline could lead to compliance problems and potential penalties.
What landlords should do now
Landlords should update lease terms, payment instructions, and tenant communications before 1 July 2026. It is also sensible to confirm the preferred bank account, set up standing orders where needed and keep clear evidence of all rent receipts.
Recommended actions:
1. Notify tenants in writing.
2. Replace cash instructions with bank details or payment links.
3. Review all tenancy agreements.
4. Keep proof of every rent payment.
5. Align accounting records with the new rule.
What tenants should do now
Tenants should make sure their rent payments are set up through an approved electronic channel and that they can evidence each payment. If rent is paid for business purposes, this becomes especially important for tax deductibility and compliance.
Recommended actions:
- Set up a bank transfer or standing order.
- Keep payment confirmations.
- Avoid cash payments after 1 July 2026.
- Check that the landlord accepts only approved methods.[2][1]
Ledgerro view
At Ledgerro, we see this as a straightforward compliance update but one that many landlords and tenants may overlook if they are still relying on informal payment habits. The best approach is to document everything early, update agreements and make sure rent payment processes are fully electronic before the deadline.
If you manage rental income, tenant payments or property-related bookkeeping, now is the right time to review your setup and avoid last-minute issues.
You can read the relevant announcement here:
Frequently Asked Questions (FAQs)
Q: Is cash rent allowed after 1 July 2026?
A: No. The announcement says rent for immovable property in Cyprus must be paid exclusively through approved electronic means.
Q: Does this apply to all rent amounts?
A: Yes. The rule applies regardless of the amount of rent.
Q: Does this apply to companies too?
A: Yes. It applies to both natural and legal persons.
Q: What payment methods are allowed?
A: Bank transfer, debit card, credit card and other recognised electronic payment methods.
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