Ukraine is transforming the housing market, relying on the EU’s experience.

Ukraine wants to provide tax incentives for social housing operators and develop an effective mechanism for establishing rental rates, said the head of the Parliamentary Committee on Urban Planning, Olena Shulyak. According to her, adapting the experiences of Britain, Germany, Denmark, and the Baltic countries to Ukrainian realities is now being considered.

One of the main instruments that Ukraine may borrow from the EU is social rent. The state is actively studying the possibility of using the EU rental rate establishment mechanism. Rental rates will depend on the renter’s income, rental market value, and the cost of housing maintenance, insurance, etc. The potential tax preferences for social housing providers, given their non-profit status, includes paying no income tax or property tax, as it is with social housing in Denmark.

Shulyak notes that the government is already working on a draft law relating to the social housing fund, which will help hundreds of thousands of Ukrainians to solve their housing issues.