Rent through a bank in Greece: what changes from 1 July 2027
Last updated: · Sources · Adapted in English from our Greek guide. Read the Greek version
From 1 July 2027, the 5% standard deduction on residential rent applies only if the rent is paid by bank or electronic means. A landlord who takes the rent in cash loses the deduction and is taxed on all of the rent instead of 95%.
The rule was passed in 2025 and its start date has been moved twice. For 2025 and 2026 income, the deduction applies however the rent is collected. This guide explains what changes, what it costs in euros and what to ask your tenant before it starts.
What changes
Legal basis: Article 210 of Law 5222/2025 added paragraph 5 to Article 39 of the Greek Income Tax Code. As a rule, a 5% presumed expense for repairs and upkeep is taken off gross rent without receipts (Article 39(3)(a) of the Income Tax Code), so 95% is taxed. The new paragraph adds a condition: if the rent is not paid into the landlord’s bank account declared to AADE, the deduction doesn’t apply.
- Collected through a bank: 95% of gross rent is taxable.
- Collected in cash, from 1 July 2027: all of it is taxable.
- The brackets don’t change: 15%, 25%, 35% and 45%, with 45% only above €36,000. They are set by a separate rule (Law 5246/2025), with its own start date.
The brackets and the deduction are explained in full in the guide Greek rental income tax in 2026.
From 1 July 2027
The penalty starts on 1 July 2027, under AADE Decision A.1187/2026 (Government Gazette B 5590/17.09.2026). It is the third start date to be set:
- 1 April 2026: the original start, under Article 129(1) of Law 5264/2025.
- 1 October 2026: the first postponement, under Article 48 of Law 5294/2026.
- 1 July 2027: the current start, under Decision A.1187/2026.
What counts as paying through a bank
The law asks for rent to be paid by electronic or bank means into a landlord’s account declared to AADE. In practice:
- A deposit of the rent into your account.
- A bank transfer from the tenant’s account.
- A payment through IRIS, Greece’s real-time instant payment system.
Cash in hand doesn’t meet the condition. If you’re not sure whether another way of paying meets it, check with your accountant.
2025 and 2026 income
For 2025 and 2026 income, the 5% standard deduction applies however the rent is collected. Even if the tenant pays in cash during those years, taxable income stays at 95% of gross rent.
- 2025 income, 2026 return: brackets of 15 / 35 / 45% and the 5% deduction.
- 2026 income, 2027 return: brackets of 15 / 25 / 35 / 45% and the 5% deduction.
- Rent from 1 July 2027: the 5% deduction only when collected through a bank.
Until 1 July 2027 you have time to change how the rent is paid at no tax cost.
What the 5% is worth in euros
An apartment let for €700 a month all year, the only income from property, with the 2026 brackets:
- Gross rent: €700 × 12 = €8,400.
- Collected through a bank: 95% is taxable, or €7,980. Tax: €7,980 × 15% = €1,197.
- Collected in cash: all of it is taxable, or €8,400. Tax: €8,400 × 15% = €1,260.
- Difference: €63 a year. That is the €420 deduction taxed at 15%. Tax as a share of gross rent rises from 14.25% to 15%.
The cost grows with the bracket. With rent of €1,800 a month (€21,600 gross), taxable income is €20,520 with the deduction and €21,600 without it. The tax goes from €3,930 to €4,200, €270 more: the €1,080 deduction is now taxed at 25%.
What to do now
- Ask your tenant to pay the rent into an account or through IRIS.
- Give them the IBAN of the account you collect rent into.
- Make sure the account is declared to AADE. How to declare it is something to confirm with your accountant.
- Keep proof for every rent payment: the account statement or the deposit slip.
- If your tenant pays in cash today, agree the change with them before 1 July 2027.
Legal basis and sources
- Collecting rent through a bank: Article 210 of Law 5222/2025 (Government Gazette A 134/28.07.2025), adding paragraph 5 to Article 39 of the Income Tax Code.
- Start date: set at 1 April 2026 by Article 129(1) of Law 5264/2025 (Government Gazette A 239/19.12.2025), moved to 1 October 2026 by Article 48 of Law 5294/2026 (Government Gazette A 58/08.04.2026) and to 1 July 2027 by AADE Decision A.1187/2026 (Government Gazette B 5590/17.09.2026).
- Standard deduction of 5%: Article 39(3)(a) of Law 4172/2013 (Income Tax Code).
- Rental income brackets 2026 (15 / 25 / 35 / 45%, top rate above €36,000): Article 8 of Law 5246/2025 (Government Gazette A 198/11.11.2025).
Your own rental income tax
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What people ask about rent through a bank
When do I lose the 5% if I take rent in cash?+
From 1 July 2027 (AADE Decision A.1187/2026, Government Gazette B 5590/17.09.2026). For 2025 and 2026 income, the deduction applies however the rent is collected.
How much more tax do I pay with cash?+
The deduction you lose, 5% of gross rent, is taxed at your bracket’s rate. With €700 a month and the 2026 brackets, the tax rises from €1,197 to €1,260, or €63 a year. With €1,800 a month the difference reaches €270.
Does a payment through IRIS count?+
Yes. The law asks for rent to be paid by electronic or bank means into a landlord’s account declared to AADE. A deposit, a bank transfer and IRIS all pay rent into such an account; cash in hand does not.
Does it affect the 2026 and 2027 tax returns?+
No. The 2026 return covers 2025 income, for which the 5% deduction applies however the rent is collected. The same holds for 2026 income, declared in 2027.
Do the rental tax brackets change?+
Not under this rule. The brackets of 15 / 25 / 35 / 45% were set by Law 5246/2025 and apply to income from 2026. Collecting rent through a bank is a separate rule, in Law 5222/2025, with its own start date.
Read next
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