Following an extension, the new framework for rent payments via IBAN will come into force on October 1, 2026.

This change directly affects both tenants and property owners, introducing new requirements as well as significant consequences for those who fail to comply.

What changes in practice?

From October 1, 2026, paying rent in cash will effectively no longer be an option.

Until then, a transitional adjustment period applies for both landlords and tenants.

The extension was deemed necessary to allow for the completion of the Property Registry (MIDA) and to ensure accurate cross-checking of payments by the Independent Authority for Public Revenue, avoiding errors, penalties, and unjust loss of benefits.

What happens if you don’t comply?

With the full implementation of the measure (from October 1, 2026), non-compliance will carry direct financial consequences.

Until then, property owners are expected to declare their IBAN on the AADE platform.

For tenants:

• Loss of the annual rent refund (“bonus”)
• Loss of access to housing benefits or subsidies

For landlords:

• Loss of the 5% tax deduction on rental income
• Higher overall tax burden

What you need to pay attention to?

To comply with the new framework, the following are essential:

• The landlord’s IBAN must be included in the lease agreement
• Payments must be made to an account in the landlord’s name
• The bank account must be declared to the tax authority (AADE)
• In joint accounts, the landlord must appear as the primary account holder
• In co-ownership cases, each owner may declare their own account
• All 12 monthly rent payments must be completed within the same tax year

Important note on account protection

Rental income is not automatically protected from seizure.

To ensure protection:

• The account must be declared as a “protected (non-seizable) account”
• In joint accounts, each co-holder must declare it individually

What this means for the market

The new system increases transparency in rental transactions and reduces the use of cash, while enabling stricter tax control.

For both landlords and tenants, timely adaptation to the new requirements is essential to avoid financial losses and additional burdens.