New opportunities for obtaining a tax deduction
From January 1, 2026, the circle of citizens eligible for a tax deduction for housing rent in Ukraine has been expanded. According to the changes made by the Law of Ukraine No. 4536-IX, passed on July 16, 2025, the right to a tax deduction now extends to combatants and individuals with disabilities due to the war.
The essence of the tax deduction mechanism lies in the refund of part of the paid personal income tax (PIT). The maximum amount of the refundable tax cannot exceed the amount of tax paid by the individual for the year. This means that citizens who meet the new criteria will be able to receive compensation for their housing rental expenses if their tax contribution in the relevant year is significant enough.
Conditions for obtaining the tax deduction
A critically important condition for receiving these funds is the presence of an official rental agreement. This ensures the legitimacy of the expenses for which a tax refund can be claimed. The procedure for receiving the payment is retrospective: expenses incurred in 2026 will need to be reported in 2027. Thus, the innovation will contribute to supporting those who participated in combat actions or suffered due to the war, easing their financial burden for housing rent.
These changes in tax legislation are an important step towards social support for soldiers and individuals with disabilities affected by the war. Given the rising housing costs, especially in the context of military conflict, the introduction of tax deductions may significantly alleviate the financial situation of these categories of citizens.
This may also encourage the legalization of rental relations through the signing of official contracts, which, in turn, will have a positive impact on the housing market in Ukraine.