On February 13, the Verkhovna Rada received a draft law on amendments to the Tax Code of Ukraine regarding taxation of income from the rental of residential real estate. On February 16, the document was submitted for consideration by the relevant budget committee.
The authors of the bill emphasize that the residential rental market in Ukraine is largely in the shadows due to the high tax burden on owners - 18% of income is personal income tax, and another 5% is military levy. To stimulate transparency, it is proposed to reduce the personal income tax rate to 5%.
In addition, the bill provides for a temporary exemption for landlords from taxation for the period from April 1, 2026, to December 31 of the year when martial law is lifted. Landlords will pay the tax themselves within 40 days after the end of the quarter.
Also, work is underway in the Verkhovna Rada to regulate the activities of realtors, which should further affect the legalization of the rental market and the transparency of transactions.
The bill aims to encourage homeowners to work legally, reduce the shadow market, and simplify tax administration for private landlords.
