Legal Rental 2025: How to Register FOP, Choose KVED, and Taxes

Legal Daily Rental 2025: How an Owner Can Register FOP and Pay Taxes

The daily rental market in Ukraine is coming out of the shadows. Cooperation with booking platforms, accepting payments to a card, and working with corporate clients require official status. For a property owner, the most profitable way is to register as a Sole Proprietorship (FOP). The Ukraine Apartments portal has prepared an explanation on how to do this correctly, choose a group, and avoid overpaying.

Step 1: Choosing KVEDs (Economic Activity Codes)

Before registering a FOP, you need to decide on activity codes. For daily rental, the following are mandatory:

• 68.20 — Rental and operating of own or leased real estate. This is the main code.
• 55.20 — Holiday and other short-stay accommodation.
• 55.10 — Hotels and similar accommodation (if you plan to provide hotel service).

Step 2: Choosing a FOP Group (2nd or 3rd?)

This is the most important financial decision. Most owners choose between the 2nd and 3rd group of the simplified tax system. The 1st group is prohibited for real estate rental.

FOP Group 2 (Most Popular)

Ideal if you rent housing to tourists (individuals) or to employees of other FOPs on business trips.

• Area Limit: You can rent residential real estate up to 100 sq.m. If your apartment or house is larger, this group does not suit you.
• Allowed Clients: The public (ordinary tourists) and single tax payers (other FOPs and legal entities on single tax). It is forbidden to rent to legal entities on the general system (LLC/TOV) and non-profit organizations.
• Tax (Unified Tax): Fixed — 20% of the minimum wage (paid monthly, regardless of income).

FOP Group 3 (For Scaling)

Suitable for those who have large areas or plan to work with large companies.

• Area Limit: None. You can rent any number of square meters.
• Allowed Clients: Anyone without restrictions (including foreign companies and LLCs).
• Tax (Unified Tax): 5% of income. No income — no tax.

Step 3: Mandatory Expenses for Maintaining FOP

In addition to the unified tax, the entrepreneur faces the following expenses:

Expense Type	Description and Amount (2025 estimate)
Unified Tax (EP)	Group 2: ~1600-1800 UAH/month (fixed). Group 3: 5% of turnover.
ESV (Social Contribution)	22% of the minimum wage (~1760 UAH/month). Important: During martial law and 12 months after, paying ESV is voluntary. However, if not paid, pension tenure is not accrued.
PRRO / Cash Register	Mandatory from 01.10.2023 if you accept cash or card payments (acquiring). Cost of PRRO (software): from 150 to 300 UAH/month.
Banking Services	Opening a FOP account: free or ~100 UAH. Commission for cash withdrawal/transfer to personal card: 0.5% - 1%.
Tourist Tax	A local tax that you collect from the guest and transfer to the budget. The rate is set by the city council (usually up to 0.5% of min. wage for domestic tourism).

How to Accept Payments Correctly?

To avoid fines, remember the main rule: money must go to the entrepreneurial account (IBAN).

• Without PRRO: If the guest pays from their account to your IBAN (by details), a cash register is not needed.
• With PRRO: If you take cash in hand, or the guest pays by card via terminal/website — you are obliged to issue a fiscal receipt via PRRO.

Legalizing business opens doors to listing on reliable platforms. Register on Ukraine Apartments and work transparently and profitably!