Property Tax: Who Has to Pay and How Much?

To determine the amount of tax, the total property area is multiplied by the tax rate established by local self-government authorities. However, the maximum rate cannot exceed 1.5% of the minimum wage per 1 m². At the same time, Ukrainian legislation provides for a number of specific rules and exemptions, as explained by Vladyslav Martynchuk, an attorney at the DE-JURE law firm.

Individuals do not have to pay property tax on an apartment of up to 60 m², a residential house of up to 120 m², or on both types of property combined. If the total area of residential property exceeds this threshold, tax is charged on the additional square meters.

However, if the property is rented out or otherwise used to generate income, this exemption does not apply.

• owners of apartments larger than 300 m² or residential houses larger than 500 m² must additionally pay a fixed amount of UAH 25,000 for each such property;
• during martial law, property tax is not charged on properties located in temporarily occupied territories or in areas of active hostilities.

For individuals, the tax amount is calculated by the tax authorities, while legal entities calculate the tax independently and submit their tax return by February 20. Individuals have 60 days to pay the tax after receiving the tax assessment notice. Businesses make advance tax payments on a quarterly basis. Late payment is subject to a penalty of 5% of the tax debt for delays of up to 30 days and 10% if the delay exceeds 30 days.