Cyprus Bans Cash Rent Payments from 1 July 2026
From 1 July 2026, all rent on Cyprus property must be paid by bank transfer or card. Cash is no longer accepted. Here is what landlords and tenants must do.
From 1 July 2026, rent on any property in Cyprus must be paid through a traceable electronic method: bank transfer, debit card, or credit card. Cash rent is no longer accepted. The rule comes from Article 48A(1) of the Assessment and Collection of Taxes Law (N.4/1978) and applies to every landlord and tenant, individual or company, regardless of how much the rent is.
TL;DR: Pay and collect Cyprus rent by bank transfer or card from 1 July 2026. There is no minimum threshold: the rule covers all rent, not just amounts over a certain figure. Cash payments stop being a valid way to settle rent.
What changes on 1 July 2026?
Until now, paying rent in cash was common in Cyprus, especially for short lets and informal arrangements. Article 48A(1) ends that for tax purposes. From 1 July 2026, rent on immovable property in Cyprus may only be paid using:
| Allowed from 1 July 2026 | No longer accepted |
|---|---|
| Bank transfer | Cash |
| Debit card | |
| Credit card | |
| Any other recognised electronic payment method |
The aim is transparency. The Tax Department wants every rent payment to leave a digital trail it can match against the rental income landlords declare.
Is there a minimum threshold?
No. This is the point most easily confused, because the broader 2026 reform also tightened cash limits on other transactions. For rent specifically, the Tax Department has confirmed the rule applies "to all individuals and legal entities, regardless of the amount of rent or the type of property use." A €300 room and a €5,000 villa are treated the same way: both must be paid electronically.
What landlords and tenants need to do
- Landlords: stop accepting cash. Share your IBAN with tenants and keep the bank records, since they are now your primary proof of rental income.
- Tenants: set up a standing order or card payment before 1 July. Keep the transfer confirmation as your proof of payment.
- Both: make sure the payment reference clearly identifies the property and the month, so the trail is unambiguous if the Tax Department asks.
Why this matters for your tax position
Rental income is already taxable in Cyprus, and the 2026 reform changed how it is taxed. The electronic-payment rule is the enforcement layer behind it. A landlord who keeps taking cash risks two problems: the income is harder to substantiate, and rental-related expenses may be harder to deduct if the underlying payments cannot be traced. For tenants in a business context, an untraceable rent payment can complicate expense deductibility.
If you are setting up a tenancy now, build the electronic payment in from the start. It is simpler than switching a cash arrangement over later, and it keeps you on the right side of the rule from day one.
We will update this article if the Tax Department publishes penalty details or further guidance.