Taxes, realtors, and the shadow market: what parliament wants to change
9 February 14:57
The Parliamentary Committee on Public Administration is developing legislative proposals to regulate the real estate and rental housing market. The Verkhovna Rada acknowledges that this sector is currently largely unregulated, and the state has virtually no control over either the flow of funds or the quality of services.
This was reported by the press service of the Verkhovna Rada of Ukraine, according to "Komersant Ukrainian".
How many landlords operate legally
According to the head of the relevant committee, Olena Shulyak, the scale of the shadow market is indicative. According to data from the State Tax Service for 2024, only about 900 people throughout Ukraine declared official income from housing rentals.
Parliament believes that the key reason is the tax burden: homeowners are forced to pay about 23% of their income, which discourages them from legalizing rental relationships.
Taxes as an incentive, not a barrier
According to lawmakers, the future bill will provide for a significant reduction in the tax burden for owners of rental properties. This is expected to stimulate the market to come out of the shadows and increase official budget revenues.
The Rada emphasizes that this is not just about taxes, but about creating clear rules for all market participants.
Who are “real estate agents” and why are they dissatisfied?
The working group is considering the quality of real estate services as a separate issue. According to Olena Shulyak, there is currently a significant gap between professional realtors and intermediaries who, in fact, do not provide any services.
“We have recorded numerous cases where individuals who position themselves as realtors act dishonestly and do not fulfill their duties: they do not show properties, do not check documents, and only receive payment for what the client has found on their own on online platforms,” notes the committee chair.
According to lawmakers, such practices cause public outrage and discredit the profession itself.
What they promise to change
The parliamentary committee has announced its intention to:
- introduce transparent rules for real estate activities;
- strengthen the protection of the rights of landlords and tenants;
- raise professional standards in the market;
- support real estate agents who actually provide quality services.
Almost 100 rental market experts have already joined the working group, and the process itself is promised to be open, with the involvement of executive authorities and relevant associations.
