Greece’s updated property transactions regulation, in effect from December 11, mandates that all payments be made exclusively through banking payment methods, effectively prohibiting the use of cash from this date onward. However, the regulations allow for certain exceptions with cash payments being used in specific cases.
According to these new regulations contracts that record advance payments, partial, or full settlement of the price in cash—or fail to document settlement via bank payment methods—are automatically invalid. Such contracts cannot be registered in the relevant public records and hold no legal effect for the parties involved, the state, or any third parties.
The regulation places significant responsibility on notaries, requiring them to specify in the contracts of property transactions that the payment was made exclusively through banking methods. Non-compliance carries severe penalties, with violators faced with a fine equal to 10% of the unverified transaction amount. This fine ranges from a minimum of 10,000 euros to a maximum of 500,000 euros per violation.
The country’s tax authorities are currently scrutinizing thousands of property transfers to sure compliance with these updated regulations.
Despite to the strict mandate, exceptions to the cash prohibition exist. In a recent circular, the Independent Authority for Public Revenue (AADE) has clarified scenarios where property transactions involving cash payments remain valid, even if the contracts are signed after December 11, 2023.
Specifically, payments in cash are allowed if the contracts are executed based on pre-agreements drafted before that date.
Similarly, settlement acts lifting conditions tied to earlier contracts or agreements may also reference cash payments, provided these payments stem from arrangements finalized before the regulatory change of December 11.
