Cyprus Rent Payments are going digital: What Landlords, Tenants and Investors need to know

The Cyprus property market is changing. From 1 July 2026, all rental payments exceeding €500 must be made exclusively through traceable electronic means, such as bank transfers, card payments, or other approved digital channels. Cash and cheques are no longer accepted. This is part of Cyprus's sweeping 2026 Tax Reform, approved in December 2025, aimed at tackling undeclared rental income and aligning the market with European financial standards. Here is what it means for you.

For Landlords

Update your lease agreements now to specify electronic payment terms, and make sure your tenants have your bank details ahead of the deadline. The Tax Department now has enhanced authority to cross-check declared income against actual payments, meaning that full declaration of rental income is no longer optional in practice, even if it never was in theory.

The good news: the Special Defence Contribution (SDC) on rental income has been abolished from 1 January 2026. This removes what was effectively a double tax on rental earnings, improving net returns for property owners across Cyprus.

For Tenants

If you are renting for business purposes, pay close attention. Rent paid outside the electronic framework may not be tax-deductible, increasing your effective tax liability. Set up a standing order or recurring card payment before July 1st and keep digital records of every transaction. On the upside, tenants with annual income exceeding €22,000 may claim a deduction of up to €2,000 on rent and primary residence loan interest, provided that payments are made electronically.

For Investors

Lease agreements should now include electronic payment clauses, and VAT exemption declarations for property leases must be submitted through the Tax for All (TFA) online portal within 30 days of signing. Missing this window is an avoidable compliance risk. The broader picture is one of professionalisation. The Cyprus market is becoming more transparent, more traceable, and more aligned with international standards, which is ultimately positive for serious, long-term investors.

How Delfi Properties Can Help

At Delfi Properties, we are part of the wider Delfi Partners ecosystem, combining real estate transaction advisory, asset management, portfolio analytics, and investment banking expertise across Cyprus, Greece and Europe. That means we don't just help you find or lease a property. We help you understand what regulatory changes like this one mean for your lease structure, your tax position, and your long-term strategy, bringing the kind of integrated perspective that goes well beyond a traditional estate agent.

The July 1st deadline is approaching. Get in touch with our team and make sure you are ready.