Tax on rental income reduced to 5%: what it means for Ukrainians.

Reduction of rental income tax in Ukraine

According to inkorr.com: Ukraine plans to reduce the rental income tax from 23% to 5-10%. This initiative is aimed at combating the shadow rental market and protecting the rights of tenants.

The head of the Verkhovna Rada committee, Olena Shuliak, noted that

“this will allow the rental market to come out of the shadows and increase the volume of taxes collected by the state.”

“For landlords, this will allow them to receive completely legal income, improve their status with banks, and have proof of legal income both in Ukraine and in EU countries,”— emphasized Shuliak.

According to the MP, the new system will benefit all parties: the state will receive more tax revenues, landlords will legalize their income, and tenants will be able to securely protect their rights due to the official registration of rental agreements.

This initiative aims to stimulate the legalization of the housing rental market and improve the situation for both landlords and tenants, which, overall, will contribute to the growth of financial transactions in this sector.

Thus, reducing taxes on rental income could be an important step towards developing a transparent housing market in Ukraine. If legislative changes are adopted, this could not only strengthen the legal protection of citizens but also improve investment conditions in the real estate sector.