Apartment for rent - how much tax the owner needs to pay.

Renting out a property is not only a way to earn additional income but also a fiscal obligation. In 2025, the conditions became stricter, and government authorities increased control. Apartment owners should care about compliance with the rules to avoid fines or inspections.

The News.LIVE editorial team shares tips on the legal renting of a one-room apartment, taxes, costs, and avoiding fines.

What taxes are paid on renting an apartment

All income from renting a property is subject to taxation unless it is business activity. From July 1, 2025, the basic tax rates are:

• 18% - personal income tax (PIT);
• 5% - military tax.

The total tax burden amounts to 23%, according to the Main Tax Department in the Cherkasy region. This applies to all citizens who rent out property without registering as individual entrepreneurs.

How much tax needs to be paid for a one-room apartment

The rental cost of a one-room apartment depends on the location. For example, in July 2025, average prices in Ukraine are as follows:

• Kyiv: 10,000-15,000 UAH/month;
• Lviv: 9,000-13,000 UAH/month;
• Odesa: 8,000-12,000 UAH/month;
• Dnipro: 7,000-10,000 UAH/month.

For instance, if you rent an apartment in Kyiv for 12,000 UAH, the annual tax base will be 144,000 UAH with possible taxes of 33,120 UAH.

How to declare income from renting

Rental taxes are not automatically withheld, so the landlord must declare their income and pay taxes by August 1 of the following year after renting out the property.

What are the risks of renting out an apartment without paying taxes

Renting 'in the shadows' can lead to fines, penalties, and administrative liability. The tax service has begun actively monitoring the rental market, which can have serious consequences for violators.

When is it beneficial to register as an entrepreneur

Registering the rental as business activity can help reduce the tax burden. However, it only makes sense if renting out several properties simultaneously or commercial real estate.

Can the amount of taxation be reduced