Cyprus Tax Reform 2026: Rent Payments in Cyprus Must Be Made Electronically from 1 July 2026

Cyprus Tax Reform 2026: Rent Payments in Cyprus Must Be Made Electronically from 1 July 2026

The Cyprus Tax Department has issued a reminder following the introduction of the 2026 tax reform, drawing attention to an important new obligation affecting landlords, tenants, companies, individuals and professionals involved in the Cyprus real estate market.

From 1 July 2026, the payment of rent relating to immovable property located in Cyprus must be made exclusively through recognised electronic payment methods.

This obligation is introduced under Article 48A of the Assessment and Collection of Taxes Law, Law 4/1978, as amended within the framework of the 2026 tax reform.

What changes from 1 July 2026

As from 1 July 2026, rent payments for immovable property in Cyprus may only be made through one of the following methods:

• Bank transfer
• Debit or credit card payment
• Any other recognised electronic means of payment

This means that rent payments in cash or by cheque will no longer be accepted for the purposes covered by the new provision.

Who is affected

The obligation applies broadly to all natural and legal persons.

This includes:

• Individuals renting residential property
• Companies renting offices, shops, warehouses or other business premises
• Landlords receiving rent from property located in Cyprus
• Tenants making rental payments for property located in Cyprus
• Property managers, advisors and professionals handling rental arrangements

The rule applies irrespective of the amount of rent payable and irrespective of the type of use of the property. Therefore, the obligation is not limited only to high value leases or commercial leases. It applies equally to residential and commercial rental arrangements.

Obligation of the landlord or rent recipient

The Tax Department has also clarified that any person entitled to receive rent for immovable property located in Cyprus may not accept payment through any method other than those permitted under Article 48A.

In practical terms, this means that landlords and other rent recipients should ensure that rental payments are received through a bank account, card payment system or other recognised electronic payment method.

Practical importance for landlords and tenants

This change is significant because it creates a clear audit trail for rental payments.

For landlords, it means that rental income should be properly recorded and capable of being traced through the banking or electronic payment system.

For tenants, it means that rent payments should be made in a way that can be evidenced through bank statements, card confirmations or electronic payment records.

This is particularly important where rental payments may be relevant for tax filings, accounting records, VAT assessments, corporate expenses, residency applications, or other legal and administrative procedures.

What should be reviewed before 1 July 2026

Landlords, tenants and companies should review their existing rental arrangements before the new rule comes into effect.

In particular, they should check whether:

• The lease agreement allows payment by bank transfer or electronic means
• The landlord’s bank details are clearly stated
• The tenant has proper evidence of each rent payment
• Internal accounting procedures reflect the new requirement
• Any existing cash or cheque based arrangements are updated before 1 July 2026

For companies, this should also be reflected in internal accounting and compliance procedures, especially where rent is treated as a deductible business expense.

Why this matters

The measure forms part of the wider 2026 tax reform and appears to support greater transparency in rental transactions, improved tax compliance and clearer documentation of rental income.

It is therefore important for both landlords and tenants to adjust their procedures in time and ensure that, from 1 July 2026, rent payments relating to Cyprus immovable property are made only through the permitted electronic payment channels.