Rent Payments for Immovable Property in Cyprus Must Be Made Electronically: New Tax Rules as of 31.12.2025

On 31 December 2025, Cyprus published amendments to its tax legislation directly affecting rent payments for immovable property. The new rules introduce two key consequences:

1. rent for immovable property in Cyprus must be paid only by bank transfer, debit/credit card or another recognised electronic payment method;
2. rent payments made in breach of this rule are not allowable as a tax deduction.

These changes are relevant to tenants and landlords, including companies, self-employed persons and individuals.
1. Obligation to pay rent by bank transfer or electronically
The first amendment was introduced by Law No. 243(I)/2025 — The Assessment and Collection of Taxes (Amendment) (No. 2) Law of 2025, published in the Official Gazette of the Republic of Cyprus on 31 December 2025. This law amends the Assessment and Collection of Taxes Law of 1978.
Section 29 of Law No. 243(I)/2025 inserted a new Section 48A into the principal law, titled “Obligation to Pay Rent Through a Bank Account”.
Under the new section 48A(1), rent relating to immovable property located within the Republic of Cyprus must be paid exclusively by one of the following methods:

• bank transfer;
• debit or credit card payment;
• any other recognised electronic means of payment.

The new section 48A(2) also imposes an obligation on the recipient of the rent: the landlord or other person entitled to receive the rent must not accept payment by any method other than those specified in section 48A(1).
In other words, the rule applies to both sides: the tenant must pay electronically, and the landlord must not accept cash or any other non-compliant method of payment.
Reference formula:
Section 48A of the Assessment and Collection of Taxes Law, 1978, as inserted by section 29 of Law Ν. 243(Ι)/2025.
2. Tax consequences: rent payments may be disallowed as a deduction
The second amendment was introduced by Law No. 244(I)/2025 — The Income Tax (Amendment) (No. 4) Law of 2025, also published in the Official Gazette of the Republic of Cyprus on 31 December 2025. This law amends the Income Tax Law of 2002.
Section 5(ζ)(iii) of Law Ν. 244(Ι)/2025 amended section 9 of the Income Tax Law. Under this amendment, no deduction is allowed for any rent payments made in breach of section 48A of the Assessment and Collection of Taxes Law.
This means that if a tenant pays rent in cash or by another method that does not comply with section 48A, the payment may be disallowed for tax deduction purposes.
Reference formula:
Article 9 of the Income Tax Law, 2002, as amended by section 5(ζ)(iii) of Law Ν. 244(Ι)/2025, read together with section 48A of the Assessment and Collection of Taxes Law, 1978.
3. Practical implications for tenants
For tenants, the new rule means that rent payments must be supported by a clear banking or electronic payment trail. This is particularly important for companies and other taxpayers claiming rent as a deductible expense.
If rent is paid in cash, even where there is a lease agreement or receipt, there is a risk that the expense will not be accepted for tax purposes.
In practice, a tenant should:

• pay rent only by bank transfer, card or another recognised electronic payment method;
• keep payment confirmations;
• ensure that the payment description identifies the rent, the property and the payment period;
• avoid cash payments for rent relating to immovable property in Cyprus.

4. Practical implications for landlords
The rule also directly affects landlords. The recipient of rent must not accept payment by any method other than those allowed under section 48A(1).
This means that a landlord accepting cash rent may be acting in breach of the new provision. Landlords should provide tenants with bank details or another permitted payment method and ensure that their rent collection practices comply with the law.
5. Who is affected by the new rules
The rules apply to rent relating to immovable property located within the Republic of Cyprus. Therefore, they may affect:

• residential leases;
• office leases;
• commercial premises;
• warehouses;
• other immovable property in Cyprus.

The rule is relevant to both individuals and companies, whether they act as tenants, landlords or taxpayers claiming rent payments for tax purposes.
Conclusion
As of 31 December 2025, Cyprus has strengthened control over rent payments. Rent for immovable property in Cyprus must be paid by bank transfer, debit/credit card or another recognised electronic payment method. The recipient of rent must not accept payment by any other method.
Non-compliance has a tax consequence: a rent payment made in breach of section 48A of the Assessment and Collection of Taxes Law may be disallowed as a deduction under section 9 of the Income Tax Law.