The left-wing coalition Sumar has registered an initiative in the Spanish Congress aimed at legalizing the rental market, which provides for a ban on cash payments for rent and the transfer of payments to electronic, traceable channels, according to Spanish media reports.
According to the published details, payments are to be made by bank transfer or other electronic means, and financial institutions servicing such transactions will be required to automatically transfer information to the Spanish tax service (AEAT) to identify undeclared income and strengthen tenant protection by confirming payment with bank statements.
A separate element of the package is a 1% withholding from the rent amount, which the landlord will have to transfer to the AEAT on a monthly basis. The materials emphasize that this levy is also seen as a tool for forming a more accurate indicator of rental price dynamics across regions.
Sumar estimates the scale of tax losses from violations and evasion in the rental income segment at over €12.5 billion per year and proposes to strengthen the resources of the tax service, including the creation of specialized units to detect violations in the real estate market.
For banks, implementing this approach means an increase in the share of payments passing through accounts and, at the same time, an expansion of the role of compliance and data exchange with tax authorities. For the housing market, this could mean an acceleration of the “whitening” of rents and increased price transparency, but the parameters and timing will depend on the initiative passing through parliament.
In Spain, measures to tighten rules in the seasonal rental segment and prevent abuse are being discussed in parallel, with the government having previously announced the preparation of a corresponding package. For comparison, in Greece, a rule will be introduced on January 1, 2026, according to which rent must be paid through registered bank accounts, and cash payments will no longer be accepted.
