The Cyprus Tax Department is introducing mandatory electronic rent payments from the 1st July as part of efforts to tackle tax evasion and undeclared rental income.
Under the new rules, all rent payments in Cyprus must be made through bank transfers, cards, or other approved electronic methods, with cash and cheque payments no longer allowed.
Officials say the changes will improve transparency and help identify landlords who fail to declare rental income. The Tax Department is currently preparing guidance ahead of the rollout.
The reforms also include tax relief for tenants, who will be able to claim up to €2,000 in deductions for rent and home loan interest on a primary residence, subject to income criteria. Updated income tax bands will apply from the 2026 tax year.
Separately, the Tax Department announced that VAT exemption declarations for property leases must now be submitted exclusively through the Tax for All online portal within 30 days of signing a lease agreement.
