The Verkhovna Rada on 15 October backed an amendment that reduces the rate of personal income tax (PIT) for citizens who officially rent out residential property from 18% to 5%.
The bill registered in the Rada Bill No. 16145 also proposes introducing professional self-regulation for real estate agents with mandatory certification; the initiative’s authors are a group of MPs led by Servant of the People party member Ihor Vasylyev.
Purpose of the changes and key figures
The bill’s authors say the new model is intended to improve service quality and reduce informality in the intermediary services market. According to their estimates, around 90% of purchase-sale and rental transactions involve intermediaries.
According to the supported amendment, individuals who officially rent out housing will pay PIT at a rate of 5% instead of 18%. The military levy of 5% will remain unchanged.
Problems in the real estate market
The bill states that failure to meet tax requirements leads to annual losses to the state budget amounting to billions of hryvnia. A lack of control contributes to the emergence of “grey” and “black” brokers and the spread of fraudulent schemes.
As listed in the document, common schemes include sales carried out by people without the proper rights, hiding registered occupants or technical defects, and contract substitution, for example registering a gift instead of lifetime maintenance. In July 2025, an e-petition demanding regulation of real estate activity gathered more than 25.9 thousand signatures.
New requirements for real estate agents and agencies
The bill proposes abandoning formal regulation by public organisations and introducing a model of professional self-government similar to the bar, the notary profession and auditing. It plans to introduce mandatory certification to confirm the qualifications of specialists.
The bill would set out clear procedures for obtaining qualifications for specialists and accreditation for real estate agencies, as well as enshrine the rights, obligations and legal liability of intermediaries and clients for violations during the provision of services.
