Rent on Cyprus Property Must Now Be Paid by Electronic Means

Cash rent is no longer lawful in Cyprus. Since 1 July 2026, rent for immovable property situated in the Republic may be paid only by electronic means, and a landlord is not permitted to accept it in any other form. The rule reaches every tenancy, residential and commercial alike, at every level of rent.

The change has had little attention outside tax circles, which is a poor reason to overlook it. It touches the mechanics of every tenancy agreement in the country, and it applies to arrangements signed long before the rule existed.

What the rule says

The obligation sits in section 48A of the Assessment and Collection of Taxes Law N.4/1978, introduced as part of the 2026 tax reform. The Tax Department set out its effect in announcements published on 3 June 2026 and again on 1 July 2026, the day it took effect.

From 1 July 2026, rent relating to immovable property within Cyprus is to be paid exclusively through one of the following:

• a bank transfer,
• payment by debit or credit card, or
• any other recognised electronic means of payment.

Two features of the wording deserve attention.

It applies to everyone, at any figure. The Tax Department states that the obligation applies to all natural and legal persons, irrespective of the amount of the rent and irrespective of the type of use of the property. There is no small-sums exception, no carve-out for a room let to a student, and no distinction between a residential flat and a warehouse.

The obligation is expressed as a prohibition on the person receiving the money, not only as a direction to the person paying it.

The landlord is bound, not just the tenant. The announcements state that a person entitled to rent relating to immovable property within Cyprus may not accept collection of that rent by any means other than those specified. A landlord who takes an envelope of cash is therefore not a passive recipient of someone else's irregular payment. The prohibition is addressed to them.

What the announcements do not say

They do not set out a schedule of penalties, and no sanction is specified in the Tax Department's published notices. Nor do the notices address the treatment of rent already paid in cash before 1 July 2026, or the position where a tenant simply refuses to pay by any other route.

Those gaps matter, and they are a reason to fix the position in the tenancy documents rather than to wait and see how enforcement develops.

What this means in practice

Amend the payment clause. Most Cyprus tenancy agreements in circulation specify a sum and a date and say nothing useful about method. A payment clause should now name the landlord's bank account, require payment into it, and record that the tenant is obliged to pay by an electronic means permitted under section 48A. For an existing tenancy, this can be done by a short written variation signed by both sides.

Stop accepting cash, including for deposits and arrears. The prohibition is on accepting rent. A landlord catching up on arrears, or settling a departing tenant's account, should route the money through the same electronic channel rather than treat the tail end of a tenancy as outside the rule.

Non-resident owners should look at their collection arrangements. Where an agent, a relative or a management company collects rent on an owner's behalf, the practical question is whether the money reaches the beneficiary through an electronic chain that can be evidenced. Owners who live abroad and have never examined how their Cyprus rent is actually collected should do so now.

Keep the record. The purpose of the measure is traceability. A landlord who can produce a clean run of bank credits matching the rent roll is in a materially stronger position, in a tax review and in a court claim for arrears alike, than one relying on receipts and recollection.

Businesses should check subleases and service arrangements too. The rule turns on rent for immovable property, not on the identity or size of the payer. Group companies that settle rent between themselves, and occupiers paying under informal arrangements with a landlord, are within its scope.

If you hold Cyprus property under a tenancy signed before this year, the sensible step is a short review of how the rent is actually paid, followed by a written variation where the practice does not match the rule.

Sources

• Tax Department announcement, 1 July 2026, gov.cy
• Tax Department announcement, 3 June 2026, gov.cy
• Assessment and Collection of Taxes Law N.4/1978, consolidated text, CyLaw
• Notice of the Cyprus Employers and Industrialists Federation, 1 July 2026

This article is provided for general information purposes only and does not constitute legal advice.

Klitos Platis

Advocate, Partner

Kleanthous & Platis LLC, Nicosia · Published 15 August 2026