As part of the housing policy reform in Ukraine, the possibility of revising the current taxation system on income from renting out housing is being considered. This initiative was proposed by Olena Shulyak, the head of the Verkhovna Rada Committee on State Governance, Local Self-Government, Regional Development, and Urban Planning.
This is reported by Finway
Benefits of Reforming the Rental Market
Currently, Ukrainian landlords are required to pay a 23% tax on income earned from renting out apartments. The proposed changes foresee a significant reduction of this rate to 5–10%. According to Olena Shulyak, this step will promote the formalization of the rental housing market, which will increase revenue to the state budget and create favorable conditions for property owners.
“This will help bring the rental market out of the shadows and increase the amount of taxes collected by the state. For landlords, it will allow them to receive completely legitimate income, improve their status with banks, and have proof of legal income both in Ukraine and in EU countries,” Shulyak explained.
Advantages for All Market Participants
The expected reduction in tax pressure will serve as an incentive for landlords to legally declare their income. This will enable them to obtain proof of legal income, which is important for cooperation with banking institutions and for using such proofs outside of Ukraine. At the same time, according to Shulyak, the reform will benefit not only landlords and the state but also the tenants themselves, as their rights will be better protected at the legislative level.