A flat bought for UAH 2.4 million and rented out for UAH 15,000 a month shows a 7.5% gross yield, but after the 10% rental tax, property tax with no relief, empty months, repairs and purchase costs our example leaves about 4.4% on the money invested. That is less than an average long-term hryvnia deposit pays after tax (11.4%) or government bonds (from 15.16%), so the flat only wins if its hryvnia price rises by roughly 7% a year or more. Below is a step-by-step method to check your own flat and tables for different rents and vacancy.
Andrii Kolisnyk
13 min read
When people say "a flat earns 7-8% a year", they usually mean the gross yield: a year's rent divided by the price of the flat. It is easy to work out from listings, but it says nothing about how much money the owner actually keeps.
The net yield is calculated on all the money invested and only on what is left after a year's taxes and costs. That is the figure to compare fairly with a deposit or bonds.
The gap between the two is often 2-4 percentage points. Below we break down where it comes from.
| Item | What it depends on | How often |
|---|---|---|
| Rental income tax | 5% personal income tax and 5% military levy on the rent | Every year, on money received |
| Property tax | Floor area and the local council rate, up to 1.5% of the minimum wage per m² | Every year, by tax notice |
| Empty months | How long the flat stands empty between tenants | Each change of tenant |
| Repairs and appliances | Age of the renovation, appliances and furniture, how careful tenants are | All the time, a major renovation every few years |
| Finding a tenant | Agent's fee or your own time for viewings and checks | Each change of tenant |
| Utilities while empty | Heating, building maintenance fees, minimum charges | While the flat is empty |
| Insurance | Policy terms: fire, flooding, liability to neighbours | Every year, optional |
| Purchase costs | 1% pension levy, notary, renovation and furniture for letting | Once, at the start |
Under a rental contract the tenant usually pays the regular utility bills while living in the flat. If you agreed that they are included in the rent, add them to the costs.
Since 23 October 2026 an individual's income from renting out housing is taxed at 5% personal income tax instead of 18%, plus 5% military levy. That is 10% of the rent in total. The tax is charged on the rent in the contract: repairs, furniture or property tax do not reduce it for an ordinary landlord.
How to declare the income, when a sole proprietorship makes sense and what fines apply for not filing is covered in "Tax on renting out a flat".
This is the cost people forget most often. Residential property tax is charged on the area above the tax-free norm: 60 m² for flats, 120 m² for houses, 180 m² for different types of housing together. The rate is set by the local council, with a maximum of 1.5% of the minimum wage on 1 January for each square metre. In 2026 that is up to UAH 129.71 per m² a year.
Three Tax Code rules explained by the State Tax Service matter for an investor:
The tax office often does not know the flat is let and may charge the tax with the relief. But a tax return with rental income shows the property is used to earn money, so plan for the full amount.
A 45 m² one-room flat bought for UAH 2,400,000 and let for UAH 15,000 a month to an individual. The price, rent and all costs except taxes are illustrative: put in your own. We assume the buyer already owns a home, so they pay the pension levy, and the tenant changes once a year with one empty month.
| Item | Amount |
|---|---|
| Price of the flat | UAH 2,400,000 |
| Pension levy 1% (not a first home) | UAH 24,000 |
| Notary and registration (illustrative) | UAH 8,000 |
| Cosmetic renovation, furniture, appliances for letting (illustrative) | UAH 180,000 |
| Total invested | UAH 2,612,000 |
| Item | Per year |
|---|---|
| Rent for 11 months (1 empty month) | UAH 165,000 |
| Rental tax 10% | -UAH 16,500 |
| Property tax, 45 m² with no relief, maximum rate | -UAH 5,837 |
| Minor repairs, replacing appliances (illustrative) | -UAH 15,000 |
| Utilities for the empty month (illustrative) | -UAH 3,000 |
| Finding a tenant: half a month's rent (illustrative) | -UAH 7,500 |
| Flat insurance (illustrative) | -UAH 2,500 |
| Net income | UAH 114,663 |
Now the yield:
So out of every UAH 100 the flat "earns" on paper, the owner keeps about UAH 64. Taxes, empty months and upkeep take the rest.
The calculation leaves out a major renovation every 7-10 years and wear of furniture. If you set money aside for them every year, the net yield is lower still. Your own time is not counted either: finding and checking tenants, calling repairmen, tracking payments.
The same flat with UAH 2,612,000 invested, all other costs as in the example above. Each empty month adds UAH 3,000 of utilities, and finding a tenant costs half a month's rent every year.
| Monthly rent | No empty months | 1 empty month | 2 months | 3 months |
|---|---|---|---|---|
| UAH 12,000 | UAH 100,263 3.8% | UAH 86,463 3.3% | UAH 72,663 2.8% | UAH 58,863 2.3% |
| UAH 15,000 | UAH 131,163 5.0% | UAH 114,663 4.4% | UAH 98,163 3.8% | UAH 81,663 3.1% |
| UAH 18,000 | UAH 162,063 6.2% | UAH 142,863 5.5% | UAH 123,663 4.7% | UAH 104,463 4.0% |
Each empty month costs roughly 0.5-0.7 percentage points of net yield. That is why a reliable long-term tenant at a slightly lower rent is often better than a high rent with frequent turnover.
Let us compare the same UAH 2,612,000 in three options at current rates. Deposit and bond rates are not fixed forever: when you reinvest, they may be higher or lower.
| Option | Yield after tax | Income per year | Access to the money |
|---|---|---|---|
| Flat to rent out (our example) | 4.4% + change in the flat's price | UAH 114,663 | Selling takes weeks or months, and you cannot sell part of it |
| Long-term hryvnia deposit, average rate 14.8% | 11.4% | UAH 297,664 | At the end of the term, early withdrawal loses interest |
| Government bonds (OVDP), auction yield from 15.16% | 15.16%, tax-free | UAH 395,979 | Can be sold before maturity at the market price |
Deposit interest is taxed like a salary: 18% personal income tax and 5% military levy. Income from government bonds is tax-free for individuals. How to choose between them and how the Deposit Guarantee Fund cover works is explained in "Deposit or government bonds".
The key question for the flat is what happens to its price. Just to match the deposit, the flat in our example has to rise in hryvnia terms by roughly 7.0% a year, and to match bonds by 10.8%. For reference, inflation in Ukraine in October 2026 was 11% year on year, but housing prices follow their own logic and can stand still or fall for years in some cities. We do not forecast prices.
Buying a flat partly on credit and "paying off the mortgage with rent" sounds attractive. But a loan amplifies the result both ways: if the loan rate is higher than the flat's net yield, every borrowed hryvnia increases the loss.
This only makes sense if you are deliberately buying a flat for yourself or your children in the future and are ready to top up, with rent covering part of the payment. The state eOselia programme is meant for buying your own home by people who do not have one and has its own borrower requirements, described in "eOselia in 2026". You can work out the payment at any rate in the mortgage calculator.
A flat bought to let is sold sooner or later, and there are taxes here too. According to State Tax Service explanations for 2026:
For our flat, selling within three years would cost 10% of UAH 2,400,000, or UAH 240,000. That is roughly 2.1 years of net rent. Add the notary, state duty and possibly an agent's fee. The conclusion is simple: a flat to rent out only makes sense as a long investment, 3-5 years or more.
If you are still choosing where to invest, it helps to make an overall plan first: an emergency fund, goals, time frames. Where to begin is explained in "How to start investing".
There are no official statistics on rental yields in Ukraine, and flat prices and rents vary a lot between cities and districts. So rely on your own net yield calculation and compare it with current deposit and bond rates. The gross yield from listings always looks higher than the real result.
The law makes no exception for acquaintances: rental income must be declared and taxed. Not filing and not paying lead to fines and late-payment interest, and any dispute with a tenant without a contract or a tax record leaves you less protected.
Daily letting gives a higher rate per night, but also more empty days, cleaning, linen, platform fees and your time. Systematic daily letting may be treated as business activity, in which case registering as a sole proprietor makes sense. Work out both options with the same net yield formula.
An ordinary individual pays 10% of the rent with no deduction for costs. A group 3 sole proprietor also pays single tax on income, so costs do not reduce the base. Costs can be counted under the general tax system, but for one flat that rarely makes sense.
A new build is often cheaper at the start, but it needs a full renovation before letting, and the building may take a long time to fill up. A resale flat can be let faster but needs more upkeep. The same calculation works for both: add all start-up costs to the price and count income after tax and vacancy.
Checked against official sources on October 29, 2026. If a figure changes, we update the article and the «Updated» date changes automatically.
This article is for information only and is not investment or tax advice. Flat prices, rents, repair and service costs in the examples are illustrative. The property tax rate and the minimum rent amount are set by your local council, so check them for your city.
Spotted a mistake or an outdated figure? Let us know and we will check it against the primary source and fix it.
Write to redaktsiia@wm2.com.ua: what is wrong and, if possible, a source with the correct information. In Gmail or your mail app the page address will already be in the message.
The new 5% rate instead of 18%, who pays depending on the tenant, calculations for UAH 15,000 a month, group 3 sole proprietors, platforms from 2027 and fines.
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Why the same rate gives you different money in hand, how to compare a deposit and bonds in 10 seconds and how to combine the two.