The mandatory bank payment of rent measure gets another postponement as the Ministry of National Economy and Finance announced a six-month extension – confirming a related report in “Parapolitika” – in order to resolve basic technical and operational issues that make implementation difficult. Although it was initially scheduled to take effect from April 1, 2026, according to the new announcement, payment of all rent through the banking system will start on October 1, to allow the necessary time for a smooth transition to the new regime.
However, it’s not ruled out that full activation of the measure may be postponed even until early 2027. According to competent sources, the current picture is that the new framework can hardly be implemented immediately, as critical parameters that have not yet been secured make its activation unfeasible at this particular stage. One of the basic issues that remain open concerns the payment process, which will allow secure identification of each rent payment. Without such a tool, there is a risk of erroneous payment registration as well as problems in data cross-referencing, something that could lead to inconvenience for both landlords and tenants. At the same time, completion of the Property Ownership and Management Registry (MIDA) is required, where bank accounts through which rent is collected will be declared. This specific mapping is considered critical for the smooth operation of the system, especially in cases of co-ownership, where it must be clarified which account will be used for rent payment. Real estate market executives point out that the six-month extension will allow involved parties to prepare adequately and solve practical issues that would otherwise cause disruption in the market.
The delay is also connected to the need for issuing ministerial decisions that will specify the implementation framework, determine possible exemptions, and clarify the way special cases are handled, such as rent collection by attorneys, management companies, or third parties. Additionally, full functionality of the digital platform that will allow recording of bank accounts and matching each payment with the specific lease must be ensured. Mandatory rent payment through the banking system aims to create a more transparent and organized framework in the rental market, strengthening transaction reliability and limiting tax evasion margins on property income. Despite transition difficulties, implementing the measure is considered necessary for drastically limiting “black” rent payments, which according to official data lead to an average declared monthly rent of just 230-240 euros – an amount considered disproportionately low by today’s market standards. It should be noted that mandatory rent payment through banks is accompanied by penalties for those who ignore it and continue cash transactions. Specifically, taxpayers (tenants and landlords) will lose financial support and discounts provided.
Electronic rent payment
Electronic payment will be a prerequisite for any financial support or discount, both for tenants and landlords. Tenants who insist on “hand-to-hand” payment or don’t deposit rent through banks, despite meeting criteria, are excluded from housing allowance and from the new annual aid of one rent up to 800 euros (with an increase of 50 euros per protected child), which is paid to those who regularly declare their rent. Similarly, landlords who rent properties and receive rent in cash will lose the 5% discount on gross income from rent, which is calculated automatically without submitting supporting documents.
Also, businesses that pay professional rent without bank payment will not be able to show it as deductible expense from their gross income. Meanwhile, from January 2026, the taxation scale for rental income has changed as a new intermediate rate of 25% has been added for amounts from 12,000 to 24,000 euros. It’s noted that latest data from tax return processing shows that approximately 1.8 million taxpayers show rental income exceeding 8.5 billion euros annually. Regarding distribution, seven out of ten taxpayers declare up to 5,000 euros and 16% declare from 5,001 to 10,000 euros, meaning 87% of owners declare below 10,000 euros annual income from properties. Rent above 10,000 euros and up to 20,000 euros per year is declared by approximately 160,000 taxpayers, meaning fewer than 1 in 10.
