Parliament proposes reducing apartment rental tax from 23% to 7%

Olena Shuliak, Chair of the Parliamentary Committee on State Building, Local Governance, Regional Development, and Urban Planning, announced this on television, Ukrinform reports.

"If a person rents out their property, their apartment, they are required to pay 23% tax on this income, including 18% of personal income tax and 5% of the military levy. According to statistics for 2024, and pending 2025 data from the State Tax Service of Ukraine, only 900 individuals across Ukraine paid the relevant taxes from renting out their property or apartments," Shuliak said.

She stressed that such data is not representative, as hundreds of thousands of people rent housing across Ukraine. "And we understand that 900 people nationwide is far too few," she said.

According to her, property owners avoid formal rental agreements primarily due to high taxes. "Paying 23% today is an unaffordable amount, which prevents the market from emerging from the shadows. From the perspective of fair taxation, we see a rate around 7%," Shuliak said.

She added that discussions on the exact tax rate are ongoing: a working group has been set up within the Ministry for Communities and Territories Development of Ukraine to consider proposals to reduce rental taxation to 9% or 10%.

"We are talking about the first step: if we want rental agreements to be properly registered and understand how many such transactions occur in the real estate market, we need to start with lowering taxes. I believe apartment owners will definitely support this," the committee chair said.

According to the State Tax Service, in 2024, citizens declared UAH 16 million in taxes from renting out property.

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