Cyprus Rent Payments From 1 July 2026: How to Pay by Bank and What Changes for Landlords and Tenants
From 1 July 2026, a new rule will take effect in Cyprus: rental payments above €500 per month must be made only through a bank account or another traceable electronic payment method. Cash and cheques will no longer be allowed for such rental payments, so both landlords and tenants need to change how they settle rent in advance.
What the Bank Payment Rule Means for Rent
The new requirement is part of Cyprus’s tax reform and is designed to improve transparency around rental income and strengthen tax authority oversight.
Under the rule, rental payments above €500 must be made by bank transfer, debit/credit card, or another recognized electronic payment method.
Cash payments and cheques will no longer meet the requirements for this type of rent.
How It Will Work in Practice
If the monthly rent exceeds €500, the tenant will need to pay only through a traceable electronic method such as a bank transfer or standing order.
The landlord will no longer be able to accept such payments in cash or by cheque.
This means the lease agreement, payment method, and bank details should all be agreed in advance rather than at the last minute.
Who Needs to Pay Attention
The rule primarily affects:
- property owners who rent out residential or commercial property in Cyprus;
- tenants who pay rent above €500 per month.
If you are currently collecting rent in cash, you will need to switch to non-cash payments before 1 July 2026.
This is especially important for those who want to avoid disputes with the tax authorities and keep proof of all rent receipts.
Main Changes for Businesses and Individuals
- Rent above €500 per month must be paid only by bank or another electronic method.
- Cash payments and cheques are no longer allowed for such rent.
- Landlords must keep bank records of received rent payments.
- The payment terms should be set out in the lease agreement.
- Failure to comply may lead to sanctions under Cyprus tax law.
What to Do Before 1 July 2026
- Notify tenants that rent can only be paid via bank account or another electronic method.
- Update the lease agreement to reflect the non-cash payment requirement.
- If you previously accepted cash rent, agree on a new payment method in advance.
- Keep bank statements and other proof of rental income received.
Frequently Asked Questions
From what date must rent above €500 in Cyprus be paid by bank transfer?
From 1 July 2026.
Which rent payments are covered by the new rule?
Rental payments above €500 per month in Cyprus.
Can rent be paid in cash if it exceeds €500?
No, cash payments are not allowed for rent above €500.
Which payment methods are allowed?
Bank transfer, debit/credit card, and other recognized electronic payment methods are allowed.
What happens if the rule is violated?
Violations may lead to sanctions under Cyprus tax law.
Do lease agreements need to be updated?
Yes, it is advisable to update the lease agreement and specify non-cash payment terms, especially for rent above €500 per month.
Do payment confirmations need to be kept?
Yes, landlords should keep bank statements and other proof of rental income received.
How This Will Affect the Rental Market
The new rule will increase transparency and make it easier for landlords to prove income.
For tenants, it means more formal steps but also more protection, because payments will be supported by bank records.
For the Cyprus tax system, this is a step toward stricter rental income control and less undeclared income.
Conclusion
From 1 July 2026, rental payments above €500 per month in Cyprus must be made only through a bank account or another traceable electronic payment method.
Landlords and tenants should update their agreements and switch to non-cash payments in advance to avoid violations and possible sanctions.
