Legislative Initiatives and Real Estate Taxes 2026: What Will Change for Ukrainians

In 2026, the Ukrainian real estate market enters a phase of active transformation. The state's main focus is shifting towards transparency of rental income, digitalization of housing records, and the implementation of European social protection standards. For owners and tenants, this means a change in tax burden and new legislative requirements.

1. Rental Income Taxes: 2026 Rates

The tax burden on landlords remains one of the highest in recent years due to the increase in the military tax rate.

Individuals (Citizens):

If you rent out an apartment as a regular individual, the total tax is 23%:

• 18% — Personal Income Tax (PIT).
• 5% — Military tax.

Important: If the tenant is a legal entity or a Sole Proprietor (FOP), they act as your tax agents and pay these taxes themselves. If the tenant is an individual, you must independently declare the income by May 1, 2026.

Sole Proprietors (FOP):

For most, the 3rd group of the single tax remains optimal:

• 5% — of the income amount.
• SSC (Unified Social Contribution) — calculated from the minimum wage (the MW as of 01.01.2026 is projected at 8647 UAH, which is approximately 1902 UAH/month).

2. Tax on "Extra" Meters: Calculation in 2026

The tax on real estate other than land in 2026 is paid for the reporting year 2025. The tax amount is tied to the minimum wage (MW) set on January 1 of the reporting year.

Exempt area (not taxed):

• For apartments — up to 60 m².
• For residential houses — up to 120 m².
• For different types of objects (total) — up to 180 m².

Tax Rate: Set by local communities but cannot exceed 1.5% of the MW per 1 m². In 2026, the maximum rate for an "extra" meter may be around 120–130 UAH (depending on the final MW indicators for 2025).

3. Housing Reform: Bill No. 12377

The main news of the year is the consideration and implementation of the bill "On the Basic Principles of Housing Policy". This document is intended to finally replace the Soviet Housing Code of 1983.

Key innovations of the reform:

• Social Rent: Creation of a municipal housing fund. It is expected that the cost of such rent will not exceed 25–30% of a family's income.
• Abolition of Housing Queues: Replacing the inefficient system of Soviet queues with transparent tools (subsidies, preferential lending "eOselia").
• Ban on Privatization of Social Housing: Such housing will remain in the ownership of communities and will be provided only for rent for constant rotation and to help those in need.

4. Protection of IDP Rights: Bill No. 11281

Starting from 2025-2026, the law on All-Ukrainian Real Estate Inventory comes into effect. The goal is to create a database of habitable housing that can be transferred for preferential rent to internally displaced persons (IDPs).

• A public interactive map of available housing will be created.
• Communities will be able to attract international investment for the repair of abandoned objects for the needs of IDPs.

5. Summary Table of 2026 Tax Rates

Category	PIT	Military Tax	Single Tax
Individual (Rental)	18%	5%	—
FOP (3rd group)	—	—	5%
Real Estate Tax	Up to 1.5% of MW for each meter above the norm

2026 will be the year of detokenization of the rental market. Increased financial monitoring and digitalization (via "Diia" and the Register of Property Rights) are forcing owners to switch to official contracts. This, on the one hand, increases tax expenses, and on the other hand, provides legal guarantees and protection to both parties of the deal.

Advice: To minimize risks and optimize taxes, it is recommended to register activities as a 3rd group Sole Proprietor (FOP) if your annual rental income exceeds the established limits for individuals.