On Wednesday, 14 January, Cypriot economist Tasos Yasemidis was the first to publicly announce the key changes that will affect almost everyone who rents housing or owns rental property. In particular, he stated that from 1 July 2026 all rent payments will have to be made exclusively through a bank or in another electronic form. This means that cash “in an envelope” payments will no longer be considered acceptable. The main purpose of the new measure is full control over rental cash flows and income transparency, which will allow the tax authorities to track the real incomes of landlords and tenants more effectively.
What is being cancelled and what is being introduced already now
As part of the new reform, the mandatory stamp duty on rental agreements is being abolished. Instead, tenants and property owners must twice a year—on 31 July and 31 December—declare the rent amounts, as well as payments to GESY. At the same time, the Special Defence Contribution, which was previously levied on rental income, is also being abolished.
These changes make the rental market more transparent and bring Cyprus closer to pan-European standards of financial oversight. Yasemidis noted that already in 2025 Cyprus recorded growing interest in officially registering contracts and properly reporting rental income. According to the economist, the state is deliberately making the system more transparent and clearer in order to bring the rental market out of the “grey zone” and align it with pan-European standards.
Why this matters for the real estate market
Tasos Yasemidis mentioned that the new system is not a temporary measure but a long-term state course toward transparency and digitalization. According to him, refuse from cash rent payments and the expansion of tax incentives will change the real estate market, make it more civilized and predictable. For tenants, this means official protection, and for owners, the need to fully bring incomes out of the shadows and get used to the new rules of the game.
In the long term, the reform may lead to rent price stabilization, increased trust in the market, and stronger investment attractiveness of Cypriot real estate.