The new measure is part of efforts to strengthen transparency and combat tax evasion, as announced by the Minister of National Economy and Finance, Kyriakos Pierrakakis, during the “Greece 2025-2030” conference.
The transition to electronic transactions will be directly linked to the eligibility for allowances, discounts, and tax exemptions, effectively making digital payments a mandatory prerequisite for all beneficiaries rather than an option.
Incentives and Penalties: Tackling the Issue of “Black” (Unreported) Rental Payments
According to the government’s economic plan, failure to pay rent through bank accounts will result in the automatic loss of subsidies that citizens currently receive to support their income.
Specifically, tenants who do not pay the rent for their primary or student residences electronically will forfeit the government rental subsidy. This financial support, distributed annually in November to approximately 950,000 households, will be granted only to those who make payments via bank transfers.
Landlords who receive rent payments in cash will lose their 5% tax deduction on expenses such as renovations. Furthermore, they will lose eligibility for tax exemptions of up to €16,000 over a five-year period for documented upgrade works, if payments are not made electronically and legal invoices are not issued.
This measure, combined with the requirement that tenants make at least one rental payment per year electronically, aims to combat undeclared transactions—a widespread practice in the Greek real estate market.
Challenges and Market Skepticism
However, the effectiveness of the measure is questioned by the market. Despite the current obligation to electronically submit rental contracts to the Taxisnet system, in many cases only a portion of the rent is declared, while the remainder is paid “under the table.”
In numerous instances, “black” rent payments are either a condition of the lease or an exchange for a lower total rent.
According to official data from the Independent Authority for Public Revenue (AADE), the average annual rent expense declared on tax returns is only €3,058 (€255 per month), a figure significantly below actual market rates—even in regional areas.
