Is there a risk of losing an apartment due to unofficial rent: clarification from lawyers

In recent weeks, videos have been circulating on social media that threaten apartment owners with criminal liability, large fines, and the possibility of property confiscation for renting without paying taxes.

Many Ukrainians may doubt that unofficial renting can lead to criminal cases. However, the situation is more nuanced, and not all claims have a real basis.

When criminal prosecution is possible

According to Ukrainian law, there is criminal liability for intentional failure to pay taxes. However, an important factor is the amount of debt. Criminal proceedings can only be opened if unpaid taxes reach approximately 2 million hryvnias. This important point is often not mentioned in informational videos, which causes panic.

For example, if an apartment owner rents his property for 20 thousand hryvnias per month and does not pay taxes as an individual, his tax burden will be approximately 23%, that is, about 4,600 hryvnias per month. In a year, such a debt will amount to approximately 55-60 thousand hryvnias. To reach criminal liability, you will not have to pay taxes for more than 30 years, and even then, the tax authorities will need to prove the permanence of the violation.

Is instant seizure of housing possible?

The next fear is that the apartment may be confiscated immediately upon detection of an unofficial lease. However, it is not so simple. First, the violations must be recorded, then the owner receives a fine and the opportunity to pay it voluntarily. Confiscation of property occurs only in case of refusal to pay.

Additionally, for possible recovery of housing, the debt must exceed 20 minimum wages (in 2026, this is more than 170 thousand hryvnias). So a scenario in which the property is taken away instantly is extremely unlikely.

Is it mandatory to register a lease agreement?

Currently, the law does not require state registration of residential lease agreements. However, possible changes being discussed in parliament could introduce mandatory registration and penalties for non-registration. The final rules have not yet been approved.