AADE opened "hunting season" for suspiciously low rent

Greek Tax Authority АΑΔΕ launches a large-scale campaign to identify suspiciously low rent paymentsactually declaring a hunt for fictitious amounts in lease agreements.

The reason was a huge number of contracts in which the stated amounts have nothing to do with the real market value of housing.

Among the most egregious examples cited by sources in ΑΑΔΕthere are cases of rental by 5 euros per month for an apartment of 107 square meters. m in Chaniaas well as contracts for 10–25 euros in certain areas Attica. Such “symbolic” amounts are obviously used to understate the tax base and hide the real income of the owners.

The campaign starts after the end of the period during which citizens could submit corrected declarations if they had previously indicated incorrect amounts and received less housing subsidy. According to ΑΑΔΕof the approximately 900,000 recipients of the new benefit, about 180,000 declare rent up to 100 euros, while only 10% indicate amounts over 400 euros. These figures reinforce suspicions that large-scale rent underpayments have become systemic.

How the new checks will work

The new stage of control is based on broad cross-checks. The tax office will compare:

• data bank transfers between the tenant and the owner,
• information from energy companies on the consumption of electricity and other services,
• level of household spending and cost of living at specific addresses and areas.

Particular attention will be paid to cases where the stated low rent clearly does not correspond to actual costs and price levels in a particular area. Essentially ΑΑΔΕ builds a more realistic picture of what it looks like rental market in major cities and tourist regions.

The end of the cash era: what changes from January 1, 2026

The key element of the reform is the complete abolition of cash payments for rent. WITH January 1, 2026 All lease payments – both residential and commercial – must be made exclusively through banks. Payment “cash in an envelope” is no longer recognized by the tax system.

The consequences for market participants will be significant:

• Tenantswho continue to pay “in hand” are deprived of the right to housing benefit and a new type of assistance up to 800 euros, since the lack of an official transaction makes the rental “invisible” to the state.
• Owners lose 5% discount on rental income if they cannot confirm receipt of rent through the banking system.
• Enterpriseswho pay commercial rent without a cashless transaction, will not be able to account for these payments as expenses and, accordingly, reduce taxable income.

Thus, the reform introduces a strict link between digital payment and access to benefits, subsidies and tax deductions. The government makes it clear that if market participants want to benefit from the system, they must play by its rules.

Why the state is no longer ready to turn a blind eye

In recent years, the housing market in Greece facing a serious affordability crisis. In large cities, especially in Athensrental rates increased by tens of percent, while a significant part of the contracts remained “gray”. Young families and students are increasingly finding themselves pushed to the periphery, while official data shows rental amounts that have long had no relation to reality.

In conditions where the state has already faced the consequences pandemic, energy crisis and climate disasters, finding sustainable sources of income has become a priority. The rental market, which for many years remained one of the largest “shadow areas”, has become the focus of attention. An additional pressure factor is the position European Unionwhich requires an increase tax discipline and transparency as a condition for further support.

In fact, we are talking about an attempt to break the old unspoken “social contract”, when many market participants considered it acceptable to declare one thing and pay another. The 2026 reform will painfully but inevitably close the era of *“€5 rents”* and move the sector onto a new, more transparent basis.

Who will lose and who will win

Obvious losers will become the owners of several properties who have been renting them out for years at reduced official rates and receiving the bulk of their income in cash. Those will also come under pressure tenantswho used the old “agreements” and paid less than the formal market price.

Some small businesses will also face an increase in the tax burden, since commercial rentalpaid by non-cash method, will become a prerequisite for recognizing expenses.

At the same time among winning will turn out to be:

• statewhich will receive significant additional tax revenues,
• honest tenantsfor whom it will become easier to demand formal contracts and transparent relationships,
• myself housing marketwhich will become more transparent and predictable, albeit at the cost of serious shocks during the transition phase.

In the future, reforms create the basis for a more balanced housing policy: the state receives real data on the cost of rent in different areas, can assess the burden on households and, if necessary, introduce additional regulatory measures.

Obviously, the adaptation period will not pass without conflicts and resistance. However, the alternative is a further deepening of the affordable housing crisis and an even greater gap between official statistics and the real lives of citizens.

Reform launched ΑΑΔΕturns the rental market from a “gray zone” into one of the key fronts in the struggle for tax fairness and fairer rules of the game for all participants.

Addendum: Taxation of rental properties

The situation with reduced rental payments is directly related to the way income from the rental of real estate is taxed in Greece. The state uses a separate progressive taxation scale, and it is on its basis that the declared amounts are compared with real market rates.

• 15% for annual income up to 12,000 euros;
• 35% for income from 12,001 to 35,000 euros;
• 45% for income over 35,000 euros.

Owners receive only a minimum fixed deduction of 5%, which is considered a conditional housing maintenance expense.

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