Property tax in Ukraine: who and how much to pay


Налог на недвижимость в Украине: кто и сколько заплатит

The Ukrainians until the end of summer to pay for the estate tax.

Who and how many will pay for the “extra” squares of housing, do defaulters fines and seizure of assets, said on the ObozTV real estate expert Sergey Kostecki.

“If the apartment is less than 60 square meters, employees pay nothing. If the house is less than 120 sq m, it also pays nothing. If there is a total of house, apartment and so on, which do not exceed 180 sq m, it is also exempt from. Anything more than the person pays at the rate of taxation prevailing on the date of accrual of the tax,” he said.

The base rate of property tax increased insignificantly, and is about 50 UAH per 1 sq. m.

“The rate is constantly growing because the constantly increasing minimum wage. The government tries to regulate that it was within 50 UAH per 1 sq. m. it was 3% of the 1280 UAH, now – 1,5% from 3200 UAH. As every year the minimum wage increases, this percentage will increase,” – explained the expert.

Kostecki also noted that the estate tax is now at the stage of formation and going totally ineffective: “the Current base of the electronic register is filled in by 20 percent. The majority of people do not pay taxes. Receipts to people who are in the registry, are sent at the place of registration of the property. But from the point of view of the law, if the person does not reside there, were not exempt from tax”.

He also said that in 2018 in Ukraine abolished penalties for non-payment of property tax.

“The tax authorities, even if the person allegedly not received a summons, can count over the last three years, his property tax, but no penalties. Those people who will receive a receipt after a year or two, will fully calculated the full amount of property tax they will be required to pay it. Penalties will start when the government optimizes the database and more details will consider how to present the agenda,” explained real estate expert.

At the same time, according to the law to arrest property for failure to pay tax can’t.

“By law, if a person does not receive any summons, he must apply to the tax authorities. But the tax authorities have a problem. For example, there is a tax on any of the areas of the city, where tens of thousands of properties which it must have taxes. Even if you turn back, there sat two people who are not physically able you to issue invoices for payment of taxes. Therefore, even if where-that something has now accumulated, it does not affect the arrest or seizure of property. Now the initial stage of development of the market, and until it comes, not take years,” he predicts.

Kostecki also stated the need to bring in legislation adjustments in respect of commercial real estate.

“Because in many villages there is a house of 50 sqm and barns for another 100. All the barns, cellars and so on are commercial real estate, in terms of the law. There are no allowances. If people will pay for a house 2500 UAH of a tax, then sheds it may pay tens of thousands of hryvnia, on the assumption that over time, the tax on commercial properties will only increase. Since there is no benefits, then people will simply go bankrupt” – he explained.

“This is especially true of abandoned properties. Many similar houses to be inherited, people can neither sell nor give, because they are not wanted, and the tax is charged, over time and penalties will be. Thus, over time, a person who lives in an apartment in Kiev and has a small barn, inherited from their parents or from her grandmother, can be charged with criminal non-payment of property tax. May be seized at the apartment, he has to calculate all the taxes”, – the expert added.


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