Ukraine Proposes Slashing Rental Income Tax to 5% for Landlords.

Proposed Legislation Aims to Cut Taxes on Rental Income

According to Novyny.live: A new bill has been registered in Ukraine's parliament, the Verkhovna Rada, which seeks to reduce the tax burden on residential rental income. The initiative proposes cutting the personal income tax (PIT) rate for such earnings from 18% down to 5%. This move is part of broader efforts to stimulate the housing market during a period of economic strain. If passed, this change could significantly impact the rental market by simplifying conditions for property owners.

Currently, landlords face an 18% PIT rate plus a 1.5% military levy. Under the proposed bill, landlords would gain the ability to independently pay their tax within 40 days after the end of each quarter. This new system could offer greater flexibility for financial planning to those renting out property.

Potential Impact on the Housing Rental Market

Furthermore, the draft law proposes a tax exemption on rental income from April 1, 2026, until December 31 of the year in which martial law is lifted. This measure is designed to support Ukraine's rental housing sector amidst ongoing economic instability. The adoption of these changes could positively affect housing affordability for the population and simplify conditions for landlords.

Reducing taxes on rental income could become a key tool for stimulating Ukraine's real estate market, especially given the economic challenges the country faces. It may also increase the attractiveness of investments in this sector, which could help provide more affordable housing and improve the overall economic situation. However, implementing these changes will depend on further legislative action and the country's economic conditions.