Taxation of property in Ukraine

The object of taxation by this tax is residential and non-residential real estate located in Ukraine, including a share in it (Article 266 of the Tax Code).
Tax payers are property owners, including non-residents.
Some real estate objects are not subject to taxation, in particular (clause 266.2.2 of the TCU):

• located in the exclusion zones and unconditional (mandatory) resettlement;
• residential real estate is unsuitable for habitation, including in connection with an emergency condition, recognized according to the decision of the village, township, city council;
• residential real estate, including a share in it, owned by orphans, children deprived of parental care, children with disabilities who are brought up by single mothers (parents), but not more than one such object per child;
• residential property owned by large families or foster families with five or more children;
• real estate owned by ATO/OOC participants and their families.

It is IMPORTANT to note that for the period of martial law, real estate tax for 2021 and 2022 for individuals is not charged or paid, and for non-residential property tax will not be calculated and paid until December 31 of the year in which martial law is lifted.

Procedure for declaring and paying tax

The tax period is a calendar year (clause 266.6 of TCU). It is not required to submit a tax return, since the tax is calculated by the tax authority (based on the data of the State Register of Real Rights to Real Estate), which sends the relevant notice-decision to the taxpayer before July 1 of the next year. At the same time, it is necessary to pay tax on the received notification-decision within 60 days from the date of its delivery (clause 266.10.1 of TCU).

Tax calculation

Property tax is calculated based on the total area of the property (part of the property or several properties). As already mentioned, as a general rule, the taxpayer does not need to calculate property tax.

However, in order to control the correctness of the amount of tax indicated in the notification, a number of circumstances should be taken into account, in particular, the following exemption:

The tax base for apartments, regardless of their number, is reduced by an area of 60 m²;

The tax base for residential buildings, regardless of their number, is reduced by an area of 120 m²;

The tax base for different types of residential properties (apartments and houses) owned by the taxpayer is reduced by an area of 180 m².

This exemption does not apply if the area of real estate of an individual is more than 5 times greater than the specified privileged area. Also, the exemption does not apply if the property is used for the purpose of generating income, for example, for rent, leasing, loans, or in entrepreneurial activities (Clause 266.4.3 of TCU).
Rural, settlement, city councils have the right to establish tax benefits, which are paid in the respective territory.

Tax incentives are also provided for certain social groups of persons, including the disabled, pensioners, as well as certain types of real estate, in particular (Article 407 of TCU):
real estate for creative workshops, ateliers, studios, museums, galleries, libraries;
outbuildings and structures up to 50 m² in area for personal subsidiary plots, horticulture, horticulture, individual housing construction.
The exemption applies only to one property of each type at the choice of the taxpayer and only if the property is not used in entrepreneurial activities (clauses 2, 3 of article 407 of TCU). It is important to note that if the tax authority does not yet have information about your right to benefits, then the benefits are applied at the request of the taxpayer, which should be sent before the end of the current tax period (clauses 6, 7 of article 407 of TCU).

The tax rate is set by the decision of the village, settlement, city council, but not more than 1.5% of the minimum wage as of January 1 of the corresponding year for 1 m² of taxable area (clause 266.5 of TCU).

In 2023, the minimum wage is UAH 6,700. Therefore, the tax amount for each taxable m² is UAH 100.5 (6700 * 1.5%).

If several residential real estate objects are owned, the calculated amount of tax in respect of each object is determined based on its share in the area of ​​all objects (clause 266.7.1 of TCU).

If the area of a separate apartment exceeds 300 m² or the area of a residential building exceeds 500 m², then the tax amount for each year for each such object increases by UAH 25,000 - the so-called. "luxury tax"

(clause 266.7.1-1 of TCU).

For the payment of tax on real estate used in special regime activities (single tax), see the page on the simplified taxation system.

The object of taxation with this tax is cars registered in accordance with the legislation of Ukraine, which meet the following criteria (Article 267 of the Tax Code):

• from the year of issue of which no more than five years have passed (inclusive);
• the average market value of which exceeds 375 minimum wages as of January 1 of the corresponding year.

In 2023, the minimum wage is UAH 6,700. Therefore, the car is taxed if its average market value exceeds UAH 2,512,500 (6,700 * 375).

The lists of cars subject to taxation are published by the Ministry of Economy of Ukraine before February 1 of each year (clause 267.2.1 of TCU).

Tax payers are car owners, including non-residents.
Transport tax relief is not provided.

Procedure for declaring and paying tax

The tax period is a calendar year (clause 267.5 of TCU). It is not required to submit a tax return, since the tax is calculated by the tax authority, which sends the relevant notice-decision to the taxpayer before July 1 of the current year (clause 267.6.2 of TCU). At the same time, it is necessary to pay tax on the received notification-decision within 60 days from the date of its delivery (clause 267.8.1 of TCU).

Tax calculation

Transport tax is paid in the amount of UAH 25,000 per year for each car that is the object of taxation. As already mentioned, the taxpayer does not need to calculate the transport tax.

However, in order to control the correctness of the tax amount indicated in the notification, a number of circumstances should be taken into account, in particular (clause 267.6 of TCU):

• in the case of purchasing a car during the year, the tax is paid starting from the month in which the ownership right arose, in proportion to the number of months. In this case, the notification-decision will be sent after the receipt of this information by the tax authority;
• in the case of selling a car during the year, the tax is paid up to the month in which the right of ownership was transferred, in proportion to the number of months;
• in the event of the expiration of 5 years of age during the year, the tax is paid up to the month of reaching 5 years inclusive, in proportion to the number of months.

For the payment of transport tax on cars used in special regime activities (single tax), see the page on the simplified taxation system.

The object of taxation by this tax is land plots on the territory of Ukraine, owned by individuals or on the right of permanent use (Article 369 of TCU). Land plots that are not subject to taxation are listed in Art. 383 TCU and include agricultural land that is in temporary conservation or under development.

Procedure for declaring and paying tax

The tax period is a calendar year (clause 285.1 of the Tax Code). Individuals do not need to submit a tax return, since the tax is calculated by the tax authority, which sends the corresponding decision-notification to the taxpayer before July 1 of the current year (clause 286.5 of the TCU). At the same time, it is necessary to pay tax on the received notification-decision within 60 days from the date of its delivery (clause 287.5 of TCU).

Tax calculation

The payment for land is calculated based on the normative assessment or area (if the normative assessment has not been carried out) of the land plot (Clause 271.1 of TCU). The regulatory assessment is made public by 15 July of the previous year. At the same time, an indexation coefficient is applied to this assessment, which is brought to the attention of taxpayers no later than January 15 of the current year (Article 289 of TCU).

As already mentioned, the taxpayer does not need to independently calculate the fee. However, in order to control the correctness of the amount of tax indicated in the notice-decision, a number of circumstances should be taken into account. Thus, benefits have been established in the form of exemption from payment for land for a number of owners, in particular (Article 281 of the Tax Code):

• pensioners;
• persons with disabilities of groups I and II;
• persons raising three or more children under the age of 18;

The amount of these benefits depends on the category of land plots:

• for a personal farm - no more than 2 hectares;
• personal plot in villages (not more than 0.25 ha), in settlements (not more than 0.15 ha), in cities - not more than 0.1 ha);
• for individual summer cottage construction - no more than 0.1 ha;
• for the construction of individual garages - no more than 0.01 ha;
• for gardening - no more than 0.12 ha.

Tax rates are set by local governments. At the same time, the tax rate for sites, the regulatory assessment of which has been carried out, is applied to such an assessment and amounts to (clause 274.1 of the TCU):

• no more than 3%;
• from 0.3% to 1% inclusive - for agricultural land;
• up to 0.1% inclusive - for forest lands.

If the normative assessment has not been carried out, then the tax rate is applied to the normative assessment of a unit of arable land in the region and is (clause 277.1 of the TCU):

• no more than 5%;
• from 0.3% to 5% inclusive - for agricultural land;
• up to 0.1% inclusive - for forest lands.

From March 1, 2022 to December 31 of the year following the year in which martial law is lifted, no tax is charged or paid on non-residential real estate located in the territories where hostilities were fought or in the temporarily occupied territories of Ukraine.

For the payment of tax on land used in special regime activities (single tax), see the page on the simplified taxation system.