The rental tax on apartments may decrease to 5%: what will change

According to hvylya.net: Ukraine is preparing to reduce the rental income tax from 23% to 5-10%. This initiative is aimed at combating the shadow rental market and protecting tenants' rights.

The head of the Verkhovna Rada committee, Olena Shulyak, stated that 'this will allow to bring the rental market out of the shadows and increase the volume of taxes received by the state'. Currently, apartment owners pay 23% tax, but new changes may encourage them to legalize their income.

'For landlords, this will allow them to receive completely white income, improve their status with banks, and have proof of legal income both in Ukraine and in EU countries,' — emphasized Shulyak.

The new system, according to the deputy, will benefit all parties: the state will increase tax revenues, landlords will legalize their income, and tenants will receive reliable protection of their rights through the official registration of rental agreements.

This initiative aims to stimulate the legalization of the rental housing market and improve the situation for both landlords and tenants, while contributing to the overall increase in financial transaction volumes in the rental market.