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Real estate tax in Ukraine in 2021: who and how much will have to pay

The real estate tax in Ukraine in 2021 will oblige Ukrainians to pay up to 70.8 UAH for every extra square meter of apartment or house area. Who is obliged to pay it and how the real estate tax rate is determined in our country, read in the article of The Page.

Who is obligated to pay real estate tax

The payers of the real estate tax in Ukraine, according to Article 266 of the Tax Code of the country, are individuals and legal entities who own real estate in the country.

If there are several persons listed as the owners of the property at once, each of them will need to pay their share of the real estate tax. If an apartment, house, or commercial space is in common ownership, but not divided into parts, its owners will have to agree among themselves who will pay.

As a rule, the owners agree to do this in turn, or everyone contributes an equal share to the whole. The main requirement is to pay real estate tax on time so as not to make a blunder.

For minor property owners, the tax is paid by their parents or guardians.

What kind of real estate you need to pay tax for in Ukraine in 2021

Not everyone needs to pay real estate tax and not for the entire area. The tax applies to owners of apartments with an area over 60 sq. m, houses over 120 sq. m, and various types of real estate over 180 sq. m.

However, you will have to pay only for the extra square meters. For example, if you have an apartment of 75 sq. m, then 15 sq. m are taxed.

If an apartment or a house is rented or used for entrepreneurial activities or business, the owner or owners will have to pay tax on the entire area.

And those who own an apartment with an area of more than 300 sq. m and a house with an area of over 500 sq. m will pay for luxury: this is extra 25,000 UAH added to the annual amount of the real estate tax.

How to calculate real estate tax in Ukraine in 2021

Local authorities will do this for you. They are the ones who charge the tax on real estate in your region. It varies for different settlements, but should not exceed 1.5% of the minimum wage in the country as of January 1 of the reporting (tax) year for 1 square meter of taxable area.

The minimum wage in 2021, on the basis of which real estate tax is calculated, is 4,723 UAH. This means that the maximum amount of property tax is 70.8 UAH for each additional square meter after 60 sq. m for an apartment and after 120 sq. m for a house. For comparison: in 2020, the maximum tax amount was 62.5 UAH, that is, it increased by 13% over the year.

In Kyiv, the rate of real estate tax is 1.5%. You need to look for the tax rate on the official website of local authorities.

When you need to pay property tax in Ukraine

A notification of the tax payment for the previous reporting period must be received before July 1 of the calendar year. This means that in 2021 we pay real estate tax for 2020.

Tax must be paid within 30 days. If the notification did not come, it is better to contact the tax office yourself and take the initiative.

Payment delay for up to 30 days will result in a penalty for non-payment of real estate tax. It will be a fine of 10% of the amount, and if you are late in payment for more than 30 days, then the amount of the fine will double and amount to 20%.

A penalty is provided in Ukraine for the fraudulent real estate tax evaders in the amount of 120% per annum of the NBU's rate.

Who may not pay real estate tax in Ukraine

Large families, disabled children, orphans, kindergartens, schools, religious organizations, participants in the war in Donbas and their families, and civil society organizations for persons with disabilities are exempted from real estate tax.

The tax may not be paid if the object is owned by local authorities, non-profit organizations that are supported by the state or local budget.

Real estate in exclusion zones, compulsory evacuation zones; family-type orphanages; dormitories; residential property that is unlivable and recognized as such by a decision of local authorities are not taxed.

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