Cyprus tax department mandates electronic rent payments starting July 1

The Cyprus Tax Department has announced that starting July 1, all rent payments must be conducted exclusively through bank transfers, debit or credit cards, or other recognized electronic means. Payments made via cash or checks will no longer be permitted. This measure is part of a broader tax reform aimed at curbing tax evasion and ensuring that rental income is accurately reported. Authorities have received numerous complaints regarding landlords who fail to declare rental income and compel tenants to pay in cash. The regulation is expected to provide clear payment evidence for both landlords and tenants in case of disputes. Tenants may benefit from tax deductions, such as a €2,000 deduction on income tax for rent and mortgage interest if annual income exceeds €22,000. While proponents like Kyprianos Theocharidis of the Property Owners Association highlight the advantages for legal clarity, some stakeholders have expressed concern regarding the transition. Issues have been raised regarding practical implementation, particularly for elderly individuals or those lacking access to digital banking systems.