Rada reduces personal income tax from 18% to 5% for landlords from 2027

The Verkhovna Rada reduced the personal income tax from 18% to 5% for landlords from 2027.

This was announced by MP Olena Shuliak (Servant of the People) on Facebook, Ukrainian News Agency reports.

"The Verkhovna Rada adopted bill No. 15111-d, which, among other things, reduced the tax burden for individuals who officially rent out real estate. It was a difficult and long journey. And we would not have passed it without the support of colleagues from other factions and groups, especially Taras Batenko, for which I am very grateful! In my opinion, this is one of those cases when a lower tax rate can give a better result for the state. Today, many homeowners who are not individual entrepreneurs rent out real estate without officially registering and declaring income. And to a large extent, the reason lies precisely in the excessively high tax burden," she wrote.

According to the MP, lowering the rate to 5% should create incentives to work legally, conclude official contracts and pay taxes. In the end, everyone will win: landlords will receive simpler and clearer rules, tenants will receive more protection of their rights, and the state will receive additional revenues and a more transparent market.

At the same time, adopting a law is not enough. According to Shuliak, it is very important that the state and responsible authorities conduct a high-quality information campaign and explain new opportunities and rules to people. Without this, the market will also gradually come out of the shadows, but much slower than it could. Therefore, the main thing now is not only to change the legislation, but also to communicate these changes to people.

As Ukrainian News Agency earlier reported, the Verkhovna Rada adopted a law on taxation of income from digital platforms.

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