Real estate tax: who should pay and how much?
7 May 2024 17:08
In Ukraine, you have to pay taxes on real estate (apartments and houses) in the summer. The tax is paid for the previous year and for the area exceeding 60 square metres for apartments and 120 square metres for houses. This was reported by the State Tax Service, "Komersant Ukrainian" reports
For residential real estate, the tax for individuals is calculated for the area exceeding 60 square metres for apartments, 120 square metres for houses, and 180 square metres for various types of residential real estate, including their shares.
The tax base is the total area of residential and non-residential real estate, including its shares.
The real estate tax rate is set by local authorities depending on the type of property and its location as a percentage of the minimum wage as of 1 January of the reporting year and cannot exceed 1.5% per 1 sq. m.
Since in 2024 the tax is calculated for the reporting year 2023, the tax rate is calculated based on the minimum wage as of 1 January 2023, which was UAH 6,700 (thus, the maximum rate per square metre cannot exceed UAH 100.5 (6,700 * 1.5%).
Tax assessment notices on payment of tax amounts calculated in accordance with the provisions of the Tax Code of Ukraine and the relevant payment details, in particular, of local authorities at the location of each residential and/or non-residential property, are sent to the taxpayer by 1 July of the year following the base tax (reporting) period (year).
The tax liability shall be paid by individuals within 60 days from the date of delivery of the tax notice-decision.
If a taxpayer owns a residential real estate object (objects), including a share thereof, the total area of which exceeds 300 square metres (for an apartment) and/or 500 square metres (for a house), the tax amount is increased by UAH 25,000 per year for each such residential real estate object (share thereof).
