Ukraine's Parliament Proposes Overhaul of Rental Market with Tax Cuts and Realtor Regulations
Ukraine's parliament, the Verkhovna Rada, is developing a reform for the residential rental market. This initiative, announced by the parliament's press service and based on information from the Committee on State Power, Local Self-Government, Regional Development, and Urban Planning, aims to reduce taxes for landlords and establish new rules for real estate agents.
According to the Tax Service, only about 900 people nationwide declared income from renting property in 2024. The current tax burden on landlords is approximately 23% of their income. In response, the head of the relevant committee, Olena Shuliak, stated that a working group has been formed, which by February 9, 2026, had already attracted nearly one hundred experts.
“We are documenting numerous cases where individuals presenting themselves as realtors act dishonestly and fail to perform their duties: they do not show properties, do not verify documents, and merely collect payment for a property the client found independently on online platforms.”
Olena Shuliak
Goals of the Reform
The reform seeks to create a more transparent and efficient housing rental system in Ukraine, which is expected to positively impact the market and its participants. This legislative effort is part of a broader push to formalize Ukraine's economy and improve the business climate following the full-scale invasion.
The proposed changes could mark a significant step in improving conditions for both landlords and tenants. Reducing the tax burden may incentivize more people to use legal rental channels, thereby increasing market transparency. This could also reduce instances of fraud involving dishonest realtors and enhance trust among all parties in the market.