The real estate market in Ukraine has undergone significant changes in recent years. Despite the war, demand for apartment rentals in major cities continues to grow. Purchasing property has become a way for preserving capital. More and more people are turning to real estate agents for support in transactions. This raises an important question: how can one operate legally in the real estate sector?
Even without a dedicated law regulating real estate agent activity, the Ukrainian real estate market is rapidly developing and transforming. This means that having a legal status is not optional but essential for professional work. Here are a few facts:
- According to OLX Real Estate, in 2024 rental demand in Ukraine continued to grow steadily, with an overall increase of +8.4%. In Lviv and Kyiv, the rental price of one-bedroom apartments increased by +9% and +16.1% respectively — confirming high market activity and competition.
- Platforms like LUN (lun.ua) show stable interest in new developments in regional capitals, despite economic uncertainty. This means there is work.
- Transactions with foreign buyers (Poland, Lithuania, Canada) have become common. To work with them, it is crucial to have official status, tax reporting, and the ability to issue invoices.
Is it necessary to have legal documentation if you work in real estate?
In 2024, Ukraine resumed discussions on a draft law to regulate the real estate profession. Its aim is to require agents to have a FOP or LLC, sign official contracts, and be listed in a professional registry. The law has not yet been adopted, but the trend is clear: a move toward transparency and professionalization.
Therefore, if you are already operating, registering a FOP or LLC not only reduces risks but also opens up more opportunities:
- to sign contracts
- to work with agencies, developers, and banks
- to issue official invoices
- to receive payments legally – from individuals and companies
FOP or LLC: What should a real estate agent choose?
In the real estate sector, both sole proprietors (FOPs) and legal entities in the form of Limited Liability Companies (LLCs) operate. The choice depends on the format of your activity:
- Simple to open and close
- Less reporting
- Low tax burden under Group 2 or 3
- Ability to officially employ a team
- Greater trust from partners and banks
- More flexible financial options and tax planning
If you are starting solo, choose a FOP. If you see yourself as the owner of an agency with a team — consider an LLC.
Which sole proprietorship (FOP) group should a real estate agent choose?
In most cases, real estate activity is suitable for Group 2 or Group 3 of the simplified tax system. The final choice depends on the type of cooperation, income level, and type of clients.
- Do you work with individuals? You can choose Group 2.
- Maximum income: up to UAH 6,672,000 per year (as of 2025).
- Clients – only individuals, other Group 2 sole proprietors, or LLCs on the simplified tax system.
- It is ideal for landlords, regional agents, and those working independently without an agency.
Note: if you work with legal entities on the general taxation system (agencies, developers, or investors), Group 2 is not suitable for you.
- No restrictions on client type – you can work with both individuals and legal entities.
- Income limit – UAH 9,336,000 per year.
- Do you work through an agency, with developers, or receive payments from abroad? Then you need Group 3.
This group is a universal solution for real estate agencies and freelance agents who have partners in other cities or abroad.
