Cyprus Rent Goes Digital: What Changed on July 1, 2026

July 2, 2026·2 min read

On July 1, 2026, a law making electronic rent payments mandatory came into force in Cyprus. Cash payments and cheques between landlords and tenants are now fully prohibited — only bank transfers, cards and recognised electronic platforms are allowed.

What Has Changed

The amendment to Article 48A of the Assessment and Collection of Taxes Law (N.4/1978) covers everyone without exception: individuals and legal entities, any amounts and all property types — residential and commercial. The law was published in the Official Gazette on April 3, 2026.

An important detail: rent payments that do not meet the electronic requirement will not be recognised as a tax deduction for the tenant. This automatically makes landlords who accept cash uncompetitive in the market.

Part of the Sweeping 2026 Tax Reform

Electronic rent is just one element. In parallel, the following came into force:

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Abolition of the SDC levy (Special Defence Contribution): previously, 2.25% of gross rental income was automatically withheld for the state. No longer. - An automatic 20% expense deduction for individual landlords: no more documenting every expense item. - A higher capital gains tax exemption: the threshold for a primary residence has been raised from €85,430 to €150,000. - Abolition of stamp duty on all new rental agreements from January 1, 2026.

What This Means for Investors

Formalising the rental market is part of Cyprus's consistent policy of attracting foreign capital. A transparent electronic trail makes a property's yield verifiable: banks are more willing to lend, and foreign institutional investors are ready to pay a premium for assets with a clean track record.

The abolition of the SDC and the automatic 20% deduction directly increase landlords' net yield — in money terms, that is an extra 2–3% per year compared with before.

Cyprus is steadily reducing the tax burden on rental income while bringing the market into the open. It is a rare combination: good for the honest investor and for the state alike.

*Source: Cyprus Mail, Sigmalive*