Land payment rules are changing: how to avoid double payment after buying real estate
30 October 14:20
New rules for collecting land fees in case of a change of real estate owner have come into force in Ukraine. This was reported by the State Tax Service, "Komersant Ukrainian" reports.
The law, adopted on July 16, 2025, came into force on October 1 and amends the Tax Code and related regulations.
The goal is to simplify the transfer of payment obligations and prevent cases of double payment, when both the old and new owner pay tax for the same plot.
How the new rules work
Now, if the ownership of a building or structure is transferred to another person, then
- the right to own or use the land plot is transferred automatically – along with the real estate;
- the new owner starts paying tax from the moment of state registration of the right;
- if the previous user has already paid the tax in advance, this amount may be credited against the new owner’s future payments.
Such a credit is only possible if the new owner reimburses the previous payer for the amount previously paid, based on the conclusion of the supervisory authority.
How the tax authorities explain the rule change
The State Tax Service explains that the previous procedure often created confusion during the transfer of ownership: part of the tax could be paid twice or remain unaccounted for due to differences in registration dates.
The new mechanism should ensure
- a clear moment of tax liability;
- reduction of tax disputes between buyers and sellers;
- transparent payments between citizens and the budget.
Land payment is one of the key sources of local budget revenues
According to the State Tax Service, in January-September 2025, local budgets received UAH 33.8 billion, which is 15.3% more than last year (UAH 29.3 billion).
The increase in revenues is attributed to the active real estate market and updated tax administration procedures.
What real estate owners should know
The tax starts to be accrued from the date of registration of ownership or use of land.
If you are buying a property together with a land plot, check whether the seller paid the tax in advance to compensate him for this amount if necessary.
In case of land lease, the right to use the land and the obligation to pay the tax is also transferred automatically.
