The real estate rental market in Ukraine is preparing for significant changes. As early as 2026, the tax burden on property owners will depend directly on the form of income declaration. Experts warn: the tax payment scheme will become more transparent, and state control — stricter.
Tax Burden for Individuals
According to comments by Igor Yasko, Managing Partner of the law firm "WINNER", the basic taxation model for ordinary individuals in 2026 will retain the current structure. Income from renting out an apartment will be taxed with Personal Income Tax (PIT) at 18% and a military levy at 5%. The total burden will amount to 23% of the income received.
It is important to note that in this model, the Unified Social Contribution (USC) is not paid. It is not accrued simply for the fact of receiving rental income by an individual if they do not have the status of an Individual Entrepreneur (FOP) or are not employed.
Registration via FOP
An alternative is registering the activity under the status of an Individual Entrepreneur (FOP) of the third group. In this case, in practice, a single tax rate of 5% plus a fixed USC calculated from the minimum base is often applied. The choice between these models depends on the volume of income and the owner's desire to legalize the activity.
Control of Digital Platforms
The popular practice of renting out housing through services like Airbnb or Booking does not grant the right to zero out taxes. If the income is received by an individual, it is taxed according to general rules. However, from 2026, data exchange between platforms and the state is being strengthened.
Experts point out the difference between pure rental and accommodation services. If the owner provides cleaning, reception, check-in, and additional services, this is effectively economic activity. For such cases, new rules for transparent declaration are being prepared for 2026, and from 2027, a separate regime with a tax agent should work for part of the income through digital platforms.
Incentives for Tenants and Security for Owners
In 2026, the circle of persons entitled to a tax deduction on housing rental expenses has been expanded. The mechanism works provided there is an official contract, proof of payment, and the tenant does not own suitable housing.
In addition to internally displaced persons, the category of beneficiaries now includes participants in hostilities and persons with disabilities resulting from the war. For the owner, this does not mean automatic exemption from taxes, but having an official contract with such a category of tenants makes the process of legalizing income safer and more predictable.
Prospects for Rate Reduction
At the moment, owners renting out housing as individuals pay tax within 40 days after the end of the quarter. However, legislative prospects look optimistic: the Verkhovna Rada has decided to reduce the PIT rate from 18% to 5%. The total tax burden will drop from 23% to 10%. The new conditions should come into force in 2027.
