Subsidy for rental housing for IDPs: procedure and conditions for obtaining it

Starting from 29 January 2025, Ukraine introduced a programme to provide rental subsidies for internally displaced persons (IDPs) who have lost or been forced to leave their homes due to the war. This programme is aimed at providing financial assistance to vulnerable IDPs to cover rental costs and also provides for compensation of a portion of taxes paid by landlords. 

Programme objective 

According to Oksana Zholnovych, Minister of Social Policy of Ukraine, the rental subsidy allows for consideration of both the financial capacity of each family to pay rent and the cost of rent in different regions. In addition, formalisation of lease relations will contribute to the legal protection of both tenants and landlords, preventing unjustified rent increases or evictions, and minimising the risk of non-payment of rent or utilities. 

The programme is being implemented as part of a two-year pilot project throughout Ukraine, with the exception of the occupied territories and areas of active hostilities. 

Categories of persons eligible to participate in the programme 

 1. Internally displaced persons (IDPs) who: 

• moved from the occupied territories or areas of active hostilities;  
• do not own housing with an area exceeding 13.65 sq. m per person;  
• their housing was destroyed or has been damaged because of the war. 

2.  Individuals and individual entrepreneurs (IEs) who are landlords, provided that: 

• rent housing to IDPs on the basis of an official contract;  
• have applied for a partial tax refund. 

 Limitations and compatibility with other types of social assistance 

•  The rental subsidy and tax compensation are not provided if the tenant and the landlord are related.  
• The tenant (IDP) must not receive housing allowance or must refuse it.  
• The tenant cannot receive compensation under the Shelter programme.  
• Sole proprietors on the single tax system of the 1st group are not allowed to rent out housing.  
• Individual entrepreneurs of the 2nd and 3rd groups must have a KVED 68.20 "Provision of real estate for rent and operation".  
• An IDP family can simultaneously receive a rental subsidy and a subsidy for housing and utility services. 

The procedure for applying for a subsidy: 

You can apply for a subsidy: 

• offline - at the service centre of the Pension Fund of Ukraine (PFU) or the Administrative Service Centre (ASC); 
• online - through the PFU electronic services portal or mobile application (using the electronic signature of the landlord and IDP).  

Instructions for submitting an application online through the Pension Fund of Ukraine's electronic services web portal can be found here. 

List of required documents  

• housing lease (rental) agreement (in the prescribed form);  
• application (in the prescribed form);  
• if necessary, documents confirming the authority of the representative.  

The documents must be submitted by the homeowner and the internally displaced person. If the homeowner is abroad, the documents can be submitted through the Pension Fund's electronic services portal. 

Calculation of rental subsidies 

An example of calculating a subsidy for an IDP family of four (working husband and wife, two minor children) renting an apartment in Dnipro for UAH 14,000 per month, with a total income of UAH 24,000 per month:  

Step 1. Calculation of the maximum cost of renting an apartment 

= 

 UAH 193.6 x 54.60 sq m x 1.16 = UAH 12261.85. 

Step 2. Calculating the mandatory payment percentage for the family 

= 

24000 грн / 4 / 2920 грн / 2 х 20% = 20,55% 

Step 3. Multiply the average monthly gross household income by the mandatory payment percentage for the household 

24000 UAHх 20,55 % = 4932,0 UAH 

Step 4. The difference between the maximum cost of rent and the received value is the amount of the subsidy 

12261,85 UAH— 4932,0 UAH= 7329,85 UAH. 

• Maximum cost of rent: UAH 193.6 × 13.65 sq. m × 4 × 1.16 = UAH 12,261.85 
• Mandatory payment percentage: (UAH 24,000 / 4 / 2,920 UAH / 2) × 20% = 20.55% 
• Amount of mandatory payment: UAH 24,000 × 20.55% = UAH 4,932.0  
• Subsidy amount: UAH 12,261.85 - UAH 4,932.0 = UAH 7,329.85

Calculation of compensation for the landlord 

Example: an individual rents out a 30 m² apartment to an IDP family (2 persons) in Kyiv, the rent is UAH 8,000 per month.  

Maximum (estimated) rent 

=

193,6  х 35,22 х 1,22 = 8318,68 UAH 

Tax liabilities:  

Personal income tax (18%): 1,440 UAH/month (4,320 UAH/quarter)  

Military duty (1.5%): 400 UAH/month (1,200 UAH/quarter)  

Total: 1,840 UAH/month (5,520 UAH/quarter)  

Maximum rent: UAH 193.6 × 35.22 × 1.22 = UAH 8,318.68  

Since the maximum rent (UAH 8,318.68) is higher than the actual rent (UAH 8,000), the compensation covers the entire amount of taxes and fees - UAH 1,840/month (UAH 5,520/quarter). 

The legal analysis of rental subsidies by the Danish Refugee Council (DRC) is available here. 

The infographic from the Ministry of Social Policy of Ukraine can be found here.  

The Procedure for Implementation of the Pilot Project on Providing a Subsidy to Pay for the Cost or Part of the Cost of Renting (Leasing) a Residential Premises and Compensation for a Part of the Personal Income Tax or Single Tax and Military Fee, approved by Resolution of the Cabinet of Ministers of Ukraine No. 1225 dated 25 October 2024, is available here.  

This information material has been produced as part of a project implemented by the Danish Refugee Council (DRC) with funding from the European Union's Civil Protection and Humanitarian Aid. The views and opinions expressed are solely those of the author(s) and do not necessarily reflect the views of the European Union or DRC. Neither the European Commission nor the DRC can be held responsible for the content of this material.