Cyprus Mandates Electronic Rental Payments from July 2026
New Regulation Requires All Rent Payments to Be Made Electronically
From July 1, a new regulation in Cyprus requires all rental payments to be made through electronic or traceable payment methods, effectively prohibiting the use of cash for rent transactions.
According to guidance issued by the Tax Department, the requirement applies to both individuals and businesses, regardless of the rental amount or the type of property involved. The rule covers all rental arrangements, with no exemptions based on payment size.
Under the new framework, tenants must settle rent electronically, while landlords are no longer permitted to accept cash payments. Businesses that continue to pay rent in cash may also lose the ability to deduct those rental expenses for tax purposes.
The measure forms part of Cyprus’ broader efforts to improve tax compliance and increase transparency in financial transactions. Rental income has historically been identified as an area where underreporting can occur, and electronic payments provide authorities with clearer transaction records.
The change also aligns with wider European trends aimed at strengthening financial transparency and combating tax evasion and money laundering. Across the European Union, regulators are gradually introducing stricter controls on large cash transactions and encouraging the use of digital payment methods.
One notable aspect of the Cyprus regulation is that it applies to all rental payments regardless of value. This means that small residential rental payments are subject to the same requirements as larger commercial lease agreements.
The new rule represents a significant shift in how rental transactions are conducted in Cyprus and reflects the country’s ongoing move toward a more digital and transparent financial environment.
Property owners, tenants, and investors are encouraged to ensure that rental payments are made through approved electronic channels in order to remain compliant with the latest regulations.