Ukraine is advised to increase the “wealth tax”: who will have to pay and for what
5 May 20:02
The International Monetary Fund (IMF) advises Ukraine to raise VAT and increase taxes for the rich next year. This was reported by "Komersant Ukrainian" with reference to Forbes.
It is proposed to raise the tax using a progressive scale – the higher the income, the higher the tax. This decision aims to balance the fiscal pressure and encourage the use of real estate more efficiently.
What “wealth taxes” are in place in Ukraine
In 2025, Ukraine will retain the current taxation mechanisms that serve as an indirect wealth tax – the real estate tax and the transport tax. Both are tied to the minimum wage, which is UAH 8,000 as of January 1.
Real estate tax
This tax is paid by individuals who own housing in excess of the limits established by law:
- apartments – over 60 m²;
- houses – over 120 m²;
- mixed-use properties – over 180 m².
The tax amount is up to 1.5% of the minimum wage for each square meter over the limit. For example, if an apartment has an area of 80 m², then 20 m² is subject to taxation. At the marginal rate of UAH 106.5/m² (1.5% of UAH 8,000), the tax will amount to UAH 2,130 per year.
An additional fixed tax applies to large-sized housing:
- apartments over 300 m²;
- houses over 500 m².
For each property of this type, the owner pays UAH 25,000 annually, regardless of the area over the limit.
The tax notice is sent to owners by July 1 of each year.
The amount must be paid within 60 days of receiving the notification.
In case of purchasing real estate during the year, the tax is calculated in proportion to the number of months remaining until the end of the year.
Despite the martial law, the authorities are not abandoning the taxation of large residential areas; on the contrary, in the context of the budget deficit, these taxes are seen as an important source of revenue. At the same time, there are increasing calls to reconsider approaches to taxation, taking into account not only the area but also the market value of the property and its location.
Transportation tax
This tax is payable by owners of certain categories of passenger cars with a high market value.
The taxpayers are individuals and legal entities that own passenger cars that are
- not older than five years (the date of first registration is taken into account);
- have an average market value of more than UAH 3 million (equivalent to 375 minimum wages).
The current list of such cars is published annually by the Ministry of Economy. In 2025, the list includes mainly premium executive models, SUVs, and some high-end electric vehicles.
The tax rate is a fixed amount: uAH 25,000 per year for each car subject to taxation. This amount does not depend on mileage, fuel type or engine size.
If the car was purchased during the year, the tax amount is calculated in proportion to the number of months remaining until the end of the calendar year, starting from the month of its registration.
Payment procedure:
- The tax service sends a decision notice by July 1 of the current year.
- The owner has 60 calendar days from the date of receipt of the document to pay the tax.
Read also: Luxury car tax: list of models subject to taxation in 2025
It should be noted that the tax is not levied on vehicles stolen and officially deregistered.
If a car is sold during the year, the person who owned it as of the beginning of the respective month is liable to pay the tax.
The transport tax is part of the government’s tax strategy aimed at increasing revenues from owners of expensive property. During wartime, it is also seen as an indicator of social responsibility of wealthy citizens.However, experts point out the need to update the criteria for assessing the value of cars, given the changes in the exchange rate and the market.
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