Greece Implements Ban on Cash Payments in Property Deals, with Exceptions for Pre-Established Agreements

Violators face strict consequences, including fines amounting to 10% of the transaction value if payments are not properly verified.

A new rule in Greece, effective December 11, requires all property-related financial transactions to be conducted exclusively through banking methods, effectively

eliminating cash payments from this process. While the regulation is stringent, it includes specific exceptions under certain conditions.

According to the updated law, contracts that fail to document payments through bank transfers or reference cash transactions—whether partial or full—will be deemed null and void. Such agreements cannot be registered in public records and will hold no legal validity for any parties involved, including the state or third parties.

Greek tax authorities have already initiated a comprehensive review of numerous property transactions to ensure adherence to the revised regulations.

Despite the overarching prohibition on cash, exceptions remain in place. Recent guidance from the Independent Authority for Public Revenue (AADE) highlights instances where cash payments in property deals will still be permissible, even for contracts signed after December 11, 2023.

Specifically, cash payments are permitted if they are tied to pre-existing agreements drafted before the enforcement date. Similarly, transactions that involve the fulfillment of conditions tied to earlier contracts may include cash payments, provided these stem from arrangements finalized before the regulatory change.

The regulation also imposes added responsibilities on notaries, requiring them to explicitly state in property contracts that all payments were processed exclusively through banking systems. Failure to comply can result in hefty fines, set at 10% of the unverified transaction amount, with penalties ranging from a minimum of €10,000 to a maximum of €500,000 per violation.