Tax on renting out an apartment in Ukraine in 2026 depends on the regime: an individual hands over 23% of the rent, a group 3 FOP 6% plus a fixed social contribution. Most landlords choose a fourth regime: not paying. Below is the arithmetic of the three legal regimes on median rent, the lease that protects both sides, and how the tax office learns about a let apartment in 2026 and will learn in 2027.
In short
- An individual pays 23% of the rent: 18% personal income tax (PIT) + 5% military levy. On rent of UAH 18,000 a month that is UAH 4,140.
- A group 3 FOP (sole proprietor) pays 5% single tax + 1% military levy + a unified social contribution (USC) of UAH 1,902.34 a month. Cheaper than the individual route above ~UAH 11,200 of rent.
- A group 2 FOP costs a fixed UAH 4,496.44 a month in 2026 (1,729.40 single tax + 864.70 military levy + 1,902.34 USC) and beats group 3 only above ~UAH 43,200 of rent.
- A let apartment loses the 60 m² property tax allowance: in Kyiv that is UAH 120 for every m² a year.
- Law 4903-IX, a 10% tax on rent through platforms from 2027, is unsigned by the president as of 17 October 2026.
Tax on letting property: three regimes, one table
| Rent per month | Individual: 18% + 5% | FOP group 3: 5% + 1% + USC 1,902.34 | FOP group 2: 1,729.40 + levy 864.70 + USC 1,902.34 |
|---|---|---|---|
| UAH 18,000 (one-room) | 4,140 | 2,982 | 4,496 |
| UAH 26,000 (two-room) | 5,980 | 3,462 | 4,496 |
| UAH 44,200 (three-room) | 10,166 | 4,554 | 4,496 |
The minimum wage from 1 January 2026 is UAH 8,647; the USC (22%), the group 2 single tax (20%) and the military levy of group 1, 2 and 4 single-tax payers (10%) are all calculated from it.
How much an individual pays on rental income: 18% + 5%
An individual pays 18% PIT and 5% military levy on the full rent, in advances within 40 days of each quarter, with an annual return by 1 May and final settlement by 1 August of the following year. If the tenant is a company or a FOP, the tenant withholds the tax as agent and the landlord receives the rent net of 23%.
Letting through a FOP: group 2 or group 3
A group 3 FOP pays 5% single tax and 1% military levy on turnover plus a USC of UAH 1,902.34 a month regardless of income. The line above which the FOP is cheaper than the individual is about UAH 11,200 a month; below it the contribution eats the saving. The median one-room flat in Kyiv lets for about UAH 18,000, well above that line. Group 3 may let to anyone, companies included.
A group 2 FOP pays a fixed UAH 1,729.40 single tax, UAH 864.70 military levy and the USC, UAH 4,496.44 a month in total regardless of rent. It is cheaper than group 3 only above ~UAH 43,200 of rent a month, and it may let only to individuals and single-tax payers: letting to a company on the general system means a 15% rate and loss of the group. Since 2025 the military levy is mandatory for group 2.
The limit for all single-tax payers is residential area let out of no more than 400 m² in total (900 m² non-residential, 0.2 ha of land): no problem for an owner of five or six flats, a problem for an owner of a floor.
What a FOP costs beyond the tax
Registration is free through Diia in a day. Running it means a book of income, a quarterly return and quarterly contributions. Done personally that is an hour a quarter; an accountant charges UAH 1,000–2,000 a month, which for a single flat halves the saving. The reasonable threshold, in analyst Ruslan Averin's view: a FOP pays from the first apartment when self-administered and from the second with an accountant.
The hidden cost of a FOP is status: FOP rental income counts as business income, and an apartment "used in business activity" is taxed on sale under the rules for an individual's property, but the tax office periodically tries another reading. Case law sides with the owner, but it is safer to sell after closing the FOP or removing the object from the business. The sale rates of 0%, 10% or 23% are covered separately: tax on selling an apartment in Ukraine 2026.
Property tax when letting: the 60 m² allowance disappears
A let apartment loses the 60 m² allowance: tax is charged on its full area, in Kyiv UAH 120 per metre (1.5% of the UAH 8,000 minimum wage of 1 January 2025). For a 45 m² one-room that is UAH 5,400 a year instead of zero, for a 68 m² two-room 8,160. Against UAH 216,000 of annual rent that is 2.5–4%, but this is exactly the line on which the tax office checks whether the "only" apartment is let: a claimed allowance alongside declared rent is a contradiction that shows automatically. City rates, deadlines and worked examples are in property tax Ukraine 2026 per square metre.
The lease: what it must contain
A residential lease is made in writing; for three years or longer it is notarised and the right of use is registered. In practice Kyiv leases run for 11 months with renewal.
What belongs in the lease beyond price and term: meter readings and who pays utilities; the deposit and the conditions for keeping it; an inventory with photographs; the owner's visiting arrangements; early termination, usually a month's notice; liability for damage; a ban on subletting and short-term letting. A 2026-specific clause covers a strike on the building: who pays for repairs, whether rent is suspended, how the deposit is returned.
For a FOP owner the lease is the basis of income; for an individual, proof of the amount declared. For the tenant, protection from eviction without notice. A lease "by word of mouth" benefits only the party not paying tax, and only until the first inspection.
How the tax office finds out
In 2026, through four channels. A notary who certifies a lease must report it to the tax office at the landlord's address (Tax Code 170.1.5), and an estate agent must report leases concluded through it (170.1.6). Banks, through regular identical transfers from one person. Neighbours and building associations, through complaints. And cross-checks: an apartment with a property tax allowance claimed and an owner registered at a different address.
Rental tax through OLX and platforms from 2027: Law 4903-IX
From 2027 a fifth and main channel may be added. On 9 June 2026 parliament passed Law 4903-IX on digital platforms: OLX, DIM.RIA, Airbnb, Booking and the rest become tax agents for individuals' income, rent of housing included, and income above the equivalent of EUR 2,000 a year is taxed at a preferential 5% PIT plus 5% levy, 10% instead of 23%, provided a special bank account is given to the platform. As of 17 October 2026 the law is unsigned by the president: the dispute is over amendments on politically exposed persons, though business associations urged signature on 14 October. Until signature the current 23% or the FOP route applies.
If the law enters into force, the individual regime through a platform becomes cheaper than a group 3 FOP at any rent up to ~UAH 47,600 a month: on UAH 18,000 that is UAH 1,800 of tax against 2,982. Above all, the platforms will report every listing, and undeclared rent stops being invisible.
The penalty for undeclared rent
The penalty for undeclared income is 25% of the tax if deliberate and 10% otherwise, plus interest, plus UAH 340 for an unfiled return, plus the tax for three years back. On a one-room flat at UAH 18,000, three years unpaid as an individual comes to UAH 149,000 of tax, 37,000 of penalty and interest. The same owner through a group 3 FOP would have paid UAH 107,000 over three years and slept soundly. The gap between "pay as a FOP" and "don't pay and get caught" is UAH 79,000 against the latter.
How to read it
For a Kyiv landlord in 2026 the choice of regime comes down to one number: a group 3 FOP from the first apartment at rent above UAH 11,200; group 2 makes sense only above UAH 43,200 of rent a month and only with individual tenants. A lease for 11 months with an inventory and a strike clause. And watch the signature on Law 4903-IX: it will either make legal letting cheaper at 10% or fail to enter force, but either way the platforms will start seeing in 2027 what the tax office today looks for by hand. If a let apartment is to be sold early, see selling an apartment owned less than 3 years.
Related: property taxes in Ukraine 2026, property tax Ukraine 2026 per square metre, tax on selling an apartment in Ukraine 2026, which apartment to buy to let.