Belarus Rental Income Guide 2026

Overview — Rental Income Tax in Belarus

Rental income from letting of residential and commercial property is chargeable to income tax in Belarus. The tax treatment depends on the type of landlord. Individuals are taxed at 13% IIT on net rental income (gross rent minus allowable deductions). Alternatively, individual landlords may opt for the single tax system, where a fixed monthly tax is paid based on the location and size of the property, eliminating the need to file annual returns. Companies include rental income in their CIT return and pay 20%. All lease agreements must be notarised and registered with the local executive committee (исполком) for residential leases exceeding one year.

Individuals — 13% IIT on Net Rental Income

Individual landlords are taxed at 13% on net rental income. The net income is calculated as gross rent received minus allowable expenses. Deductible expenses include:

• Property maintenance & repairs — not capital improvements
• Utilities — if paid by the landlord (heating, electricity, water, gas)
• Property management fees — paid to licensed agents
• Insurance premiums — building insurance
• Property tax — annual property tax paid
• Interest on mortgage — interest on loans used to acquire the rental property
• Depreciation — at tax-approved rates for the building
• Registration & legal fees — lease registration and legal costs

To claim deductions, the landlord must file an annual IIT return (by 1 April) and maintain proper records of income and expenses. If no deductions are claimed, the tax is simply 13% of gross rental income.

Single Tax System — Alternative for Individuals

Individual landlords may opt for the single tax system instead of the standard 13% IIT. Under this system, a fixed monthly tax is paid based on the location, type, and size of the rental property. The rates are set by local councils and typically range from BYN 20 to BYN 100 per month for residential property in cities like Minsk. The single tax is a final tax — no annual return is required, and no deductions are allowed. This system is popular with landlords who rent out one or two properties and prefer simplicity over tax optimisation. The single tax option must be elected before the start of the tax year.

Corporate Landlords — 20% CIT

Companies receiving rental income must include it in their corporate tax return and pay 20% CIT on net rental profits. All standard business deductions (maintenance, utilities, management fees, insurance, interest, depreciation) are available. Rental income received by a company from related parties must be at arm's length under transfer pricing rules. Companies registered as VAT taxpayers must charge 20% VAT on commercial rent (residential rent is VAT-exempt).

Lease Registration & Compliance

All residential lease agreements in Belarus exceeding one year must be registered with the local executive committee. The registration process involves submitting the lease agreement, identity documents, and proof of property ownership. The registration fee is typically BYN 10–30. Short-term leases (less than one year) and commercial leases do not require registration but should be documented in writing. Landlords must register as taxpayers with the MNS if they receive rental income. Failure to register leases or declare rental income can result in penalties of up to 100% of the unpaid tax plus interest.

FAQs

Do I need to register as a taxpayer to rent out my apartment?

Yes, if you receive rental income, you must register with the MNS as an income recipient. The registration is done online through the MNS portal or in person at the local tax inspectorate.

What is the best tax option for renting out a single apartment?

For a single residential property, the single tax system is often simpler and may result in lower tax than 13% of gross rent. Compare the fixed single tax rate for your location with 13% of your expected annual rent to determine which is more favourable.

Are advance rent payments taxable in the year received?

Yes, rental income is taxable in the year it is received, regardless of the period it covers. If you receive rent for multiple years in advance, the full amount is taxable in the year of receipt.

Disclaimer

This guide provides general information about Belarusian rental income tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Belarusian tax advisor or the Ministry of Taxes and Levies for advice specific to your situation. InvestmentKit does not provide tax advice.