New real estate tax rules: what homeowners should expect
4 April 19:41
Ukraine is changing its real estate tax rates, which will come into effect in 2025, news.finance.ua reports .
According to the new legislation, homeowners will now pay tax depending on the area of real estate and its location, Komersant ukrainskyi reports.
The main innovation is an increase in the basic rate to 1.5% of the minimum wage for each square meter that exceeds the norm.
How the tax rate is calculated
The tax rate is determined by local authorities as a percentage of the minimum wage at the beginning of the reporting year. It can be a maximum of 1.5% per square meter.
For example, as of January 1, 2024, the minimum wage was UAH 7100, so the maximum rate is equal to UAH 106.5 per 1 square meter.
The tax is charged only on the area that exceeds the established norm. For example, if an apartment has an area of 65 square meters, the tax is charged only for 5 square meters. In this case, the amount will be: 5×106.5=532.50 hryvnias.
When to pay
The tax must be paid within 60 days from the date of receipt of the notification. Notifications are sent to the taxpayer’s personal account or by registered mail by July 1.
In case of delay, penalties are imposed: 5% of the amount owed if the delay is up to 30 days and 10% if the delay exceeds this period.
Who is exempt from payment
Certain categories of citizens are exempt from paying real estate tax. This applies to owners of housing whose area does not exceed the established norms, as well as those whose property is located in the occupied territories or in the war zone, damaged or destroyed.
The following real estate objects are not taxed:
- family-type orphanages;
- housing for orphans and children with disabilities (subject to ownership of one property);
- property of public organizations of persons with disabilities;
- housing for large families or foster families with five or more children.
Also, co-owners of housing will not have to pay the tax if their shares do not exceed the established norms.
There are no real estate tax benefits for pensioners in Ukraine. However, they are exempt from paying land tax after reaching the age of 60. At the same time, local councils can independently increase the tax-free area or define additional privileged categories of citizens.
