Tax on renting out a flat in Ukraine in 2026: what the landlord pays and how to stay legal

What changed on 23 October 2026

Amendments to the Tax Code cut the tax rate on income from renting residential and non-residential real estate from 18% to 5%. The military levy has not changed and stays at 5%, so the total burden fell from 23% to 10% of the rent.

• Who it applies to: owners of flats, houses, rooms, offices, garages and other premises who rent them out as individuals.
• Who it does not apply to: renting out land plots and land shares, and movable property such as cars or equipment: the rate there remains 18%.
• From which income: according to the State Tax Service, money received before 23 October 2026 is taxed at the old 18% rate, and money received from 23 October at the new one.

The tax service has not yet explained some transitional cases in detail, for example October rent accrued before the 23rd but received later. If that is your situation, it is worth requesting an individual tax consultation.

Who pays the tax: it depends on the tenant

If the tenant is a company or a sole proprietor, you usually do not need to declare this income separately unless you have other reasons to file a return. In the contract with such a tenant, state explicitly whether the rent is before or after tax withholding: that determines how much you receive.

How much to pay: calculations

Take a flat rented for UAH 15,000 a month, or UAH 180,000 a year.

Tax is charged on all the rent the owner receives. Utility payments the tenant reimburses by meter are best set out in the contract separately from the rent.

Is it worth renting out through a sole proprietorship

Before the rate cut, a group 3 sole proprietorship was often better: 5% single tax plus 1% military levy against 23% for an ordinary individual. Now the rates have almost converged: 6% against 10%, and a sole proprietor also pays the minimum ESV of UAH 1,902.34 a month, or UAH 22,828 a year.

So a sole proprietorship pays off only when annual rental income exceeds roughly UAH 570,702, or if you are already a sole proprietor and pay ESV for another activity anyway. The upside: paid ESV gives insurance record. Why that matters for your pension is explained in the article on buying insurance record.

A restriction: single tax payers in groups 1 to 3 may not rent out residential premises with a total area over 100 m² or non-residential premises over 300 m². More on groups, rates and limits is in the article on sole proprietor taxes, and you can work out your single tax in the single tax calculator.

Short-term rentals and platforms from 2027

From 1 January 2027 separate rules apply to income received through digital platforms, including from renting out housing. Under law No. 4903-IX such income will be taxed at 10% within an annual threshold and 23% above it, and platform operators will have to withhold tax and report on sellers themselves. Details of how this will work still await State Tax Service guidance.

If you rent out housing by the day on a regular basis, the tax service may treat it as business activity. In that case it makes sense to register as a sole proprietor.

What happens if you do not pay

The tax service learns about rentals more and more often: from neighbours, homeowners' associations, building managers, listings and, from 2027, digital platforms. For undeclared income and unpaid tax you face:

• a fine of 25% of the unpaid tax, or 50% for a repeat violation;
• late payment interest for each day of delay;
• an administrative fine of up to UAH 850.

With the lower rate, legal renting is cheap, while the risks of hiding income remain. An official contract also protects the owner: it makes it easier to recover debt from a tenant or evict one who does not pay.

How to rent out a flat legally: step by step

1. Sign a written lease: the parties, the address, the term, the rent, who pays the utilities, how the deposit is returned, a description of the flat's condition and contents.
2. Record meter readings on the move-in day in a handover certificate.
3. Receive payment to an account rather than in cash: this makes it easier to prove the amount of income and its receipt.
4. Keep a record of payments for the year: the date and amount of each payment, especially in 2026, when two rates apply.
5. File the declaration by 1 May through the taxpayer's online account and pay the tax on time.

In short

• Since 23 October 2026 the tax on property rent is 5% income tax and 5% military levy, 10% in total. Renting out land and movable property is still 18%.
• If the tenant is an individual, the owner declares the year's income by 1 May and pays the tax. If it is a company or sole proprietor, the tenant withholds the tax.
• On UAH 15,000 a month the taxes come to UAH 18,000 a year instead of UAH 41,400 under the old rules.
• A group 3 sole proprietorship now pays off only with income above roughly UAH 570,702 a year or if you already pay ESV.
• Hiding income means a fine of 25-50% of the tax, late payment interest and an administrative fine.

This article is for information only and is not tax advice. The rules have just changed, and the State Tax Service is still clarifying some situations. In unusual cases, request an individual tax consultation.