Renting Out Your Ukrainian Apartment From Germany: Taxes in Ukraine and Germany Explained

You’re in Germany, deciding what to do with your Ukrainian apartment: rent it out officially or leave it empty. Below is how much you actually keep, and who physically pays the tax to Ukraine’s State Tax Service — you, the tenant, or an intermediary.

# Step 1: Are you a Ukrainian tax resident?

Ukrainian tax law works differently for residents and non-residents. Residency is defined by Tax Code of Ukraine (TCU) Art. 14.1.213: permanent housing in Ukraine first, then center of vital interests, then the 183-day rule, then citizenship. Registered as a sole trader (ФОП) or having your family in Ukraine is enough to establish center of vital interests. So if you still have an active ФОП or your family lives there, you’re most likely a Ukrainian tax resident. No home, no family, no ФОП in Ukraine — you may be classified as a non-resident.

# Who pays the tax

If you’re a Ukrainian tax resident:

• Tenant is a company or sole trader (ФОП): they act as your tax agent, withhold 18% personal income tax and 5% military levy from each payment, and remit it themselves. You receive the net amount.
• Tenant is a private individual: you pay the tax yourself, within 40 days after each calendar quarter, and file an annual return by May 1.

If you’re a non-resident: TCU Art. 170.1.3 allows non-residents to rent out Ukrainian property only through a Ukrainian ФОП or legal entity. They represent you under a written contract, withhold the tax as your agent, and pay it to the State Tax Service. One thing worth stressing: the tenant — even a corporate one — does not qualify as that representative. A non-resident can’t sign a lease directly with a tenant and pay the tax personally; the law treats this as tax evasion.

A real estate agency registered as a ФОП, or any other ФОП you contract separately, can serve as your intermediary. A relative without ФОП status cannot — they have no legal standing as a tax agent.

# How much you keep after taxes

Example: monthly rent of UAH 15,000.

• Personal income tax 18%: UAH 15,000 × 0.18 = UAH 2,700
• Military levy 5%: UAH 15,000 × 0.05 = UAH 750
• Total tax: UAH 3,450
• You keep: UAH 11,550 per month

Annualized: UAH 180,000 gross, UAH 41,400 in taxes, UAH 138,600 net.

If your intermediary charges a service fee, that comes out of your net separately — agree on it upfront in the contract.

When official rental doesn’t make sense. If you’re a non-resident and can’t find a reliable intermediary locally, the formal setup may cost more than the rental brings in. Leaving the apartment empty with utilities paid sometimes makes more practical sense. Renting under the table isn’t a real alternative: Ukraine’s State Tax Service can assess back taxes and penalties, and Jobcenter treats the property as an asset regardless.

# Declaring Ukrainian rental income in Germany

Yes, you have to — if you’re a German tax resident. But you won’t pay tax on it twice.

Under the 1995 Ukraine–Germany tax treaty, Ukraine has the right to tax income from real property (Article 6), and Germany exempts that income from German tax (Article 23). The exemption comes with a catch: Progressionsvorbehalt (§ 32b EStG). The Finanzamt adds your Ukrainian rental income to your taxable base only to calculate the rate, then applies that higher rate to your German taxable income.

Example. German taxable income: €20,000. Net Ukrainian rental income calculated under German rules: €3,500. Tax on €20,000 under the 2026 scale: €1,570 (effective rate ~7.85%). Rate is determined on €23,500: 10.46%. Applied to €20,000, that’s €2,091. The rental costs you roughly €521 extra in German tax per year.

Employees must file a return if exempt-with-progression income exceeds €410 per year (§ 46 EStG) — so a return is required in this example. Foreign income goes in Anlage AUS. If you have no German taxable income at all, the Ukrainian rental doesn’t generate a German tax liability on its own.

The new treaty. A new Ukraine–Germany double taxation treaty was signed on May 19, 2026. It’s expected to apply from January 1, 2027, if ratification is completed by December 31, 2026. The 1995 rules apply until then.

# Ukrainian rental income and Jobcenter

Jobcenter counts rental income even when it’s taxed in Ukraine and exempt in Germany. From July 1, 2026, Grundsicherungsgeld replaced Bürgergeld. Under § 11 SGB II, any income — including foreign rental receipts — reduces your benefit.

Under § 60 SGB I, you must notify Jobcenter of:

• the Ukrainian apartment itself (it’s an asset);
• when rent starts and how much it is;
• any changes to either.

Whether Jobcenter counts an apartment as a usable asset under § 12 SGB II depends on whether it can realistically be sold or used — for a property in a frontline city, the answer may differ. Bring documentation on the property’s condition and the local market.

The common mistake: assuming that because Ukraine taxes the rental income, Jobcenter isn’t concerned. Tax law and social benefit law are separate systems. Hiding income leads to repayment demands and can result in criminal fraud charges.

# How to manage it all remotely

Power of attorney and the contract. Your intermediary needs both a representation agreement and a power of attorney. You can get the power of attorney notarized at the Ukrainian Consulate in Germany, or through a German notary with an apostille. Confirm the exact requirements with your intermediary and your Ukrainian bank before you sign anything.

Getting paid. The simplest arrangement is having rent paid into your Ukrainian bank account. You can access those funds in Germany via a foreign currency card or cash withdrawals abroad within National Bank of Ukraine limits. Sending the money to yourself via SWIFT to a German account isn’t permitted under NBU Resolution No. 18. From a foreign currency account, you can transfer up to the equivalent of UAH 100,000 per month to a card.

Bank due diligence. Ukrainian banks assess transaction risk and may ask for source-of-funds documentation. A rental agreement plus your intermediary contract covers that.

German reporting. If you receive a single incoming payment of more than €50,000 from another person or foreign company into a German account, you must report it to the Bundesbank by the 7th Werktag (business day — Saturdays count) of the following month (§§ 67 and 71 AWV). For most apartment owners, this threshold won’t apply. Transfers between your own accounts don’t require reporting.

Thinking about opening a ФОП? If you’re a non-resident, you can’t be a simplified-tax (single tax) ФОП under TCU Art. 291.5.7. And a non-resident can’t use their own ФОП to represent themselves in renting out their own property — the representative must be a separate ФОП or legal entity. More on sole traders abroad: FOP / Sole Trader Abroad: Taxes, Residency, and the Simplified System in 2026.

Comparing renting versus selling: Real Estate Investment in Ukraine 2026: Rent vs Sell.

# See also

• How to Rent Out an Apartment Legally in Ukraine 2026: ФОП, Tax Return, 5% or 18% — lease setup, rates, filing
• Ukrainian Income in Your German Tax Return: How to Avoid Paying Twice — what else goes in Anlage AUS
• FOP Abroad: Taxes and Residency — how relocating affects the simplified tax system
• All Calculators — taxes, deposits, sole trader