Property Tax in Ukraine: Who Pays, How Much and How to Check the Calculation

Every summer some owners of apartments and houses receive a tax notice from the tax authority for real estate tax. Some are surprised because they "never paid before", others doubt the amount is correct. In fact the calculation rules are simple, and most owners of small apartments pay nothing thanks to the exempt area. Here's how it all works.

The tax on real estate other than land is a local tax and part of the property tax. It's governed by Article 266 of the Tax Code of Ukraine, while specific rates and exemptions are set by village, town and city councils.

Who Pays

Taxpayers are individuals and legal entities, including non-residents, who own residential and non-residential real estate. Taxable objects include:

• apartments, residential houses, garden and country houses, dormitory rooms;
• non-residential premises — shops, offices, warehouses, garages.

If a property is owned by several people in shares, each pays tax in proportion to their share. If it's in joint ownership without defined shares, one co-owner is designated as the taxpayer by agreement or by a court.

The Exempt Area: Who Doesn't Pay

For individuals, the tax base is reduced by an exempt area:

• 60 m² — for an apartment (or apartments, regardless of their number);
• 120 m² — for a residential house (or houses);
• 180 m² — if a person owns both an apartment and a house.

So the owner of a one- or two-room apartment up to 60 m² pays no tax. Local councils may increase the exempt area. The reduction applies once per tax period.

The law also exempts, among others, property owned by orphans, housing of large and foster families (within set conditions) and property that has become uninhabitable due to emergencies. During the war, legislation has provided exemptions for property located in combat zones and temporarily occupied territories, and for destroyed property. Check details in the current version of the Code and on the State Tax Service website.

Tax Rates

The rate is set by the local council but cannot exceed 1.5% of the minimum wage established on 1 January of the tax year, per 1 m² of the tax base. Councils can set different rates by type of property and location zone, including 0%.

You can find the rate for your city in the local council's decision on local taxes and fees (published on the council's website) or in the rates directory on the tax service website.

Extra Tax on Large Properties

If an apartment exceeds 300 m² or a house 500 m², the tax increases by UAH 25,000 a year for each such property.

The Formula

Tax = (total area − exempt area) × rate per 1 m²

Where the rate per 1 m² = minimum wage on 1 January × the percentage set by the local council.

Example 1. One Apartment

Iryna owns an apartment of 78 m². The local council set a rate of 1% of the minimum wage. For simplicity, let's assume a minimum wage of UAH 8,000.

• Base: 78 − 60 = 18 m².
• Rate per 1 m²: 8,000 × 1% = UAH 80.
• Tax: 18 × 80 = UAH 1,440 a year.

Example 2. Two Apartments

Andriy owns two apartments — 45 m² and 50 m², 95 m² in total. The 60 m² exemption applies to the combined area of the apartments.

• Base: 95 − 60 = 35 m².
• At UAH 80/m², the tax is UAH 2,800.

The exemption applies to the combined area, and the tax is allocated between the properties as set out in the tax notice.

Example 3. An Apartment and a House

Olena owns an apartment of 70 m² and a house of 150 m², 220 m² in total. Since she owns both types of housing, the exemption is 180 m².

• Base: 220 − 180 = 40 m².
• Tax: 40 × 80 = UAH 3,200.

How and When to Pay

Individuals don't file a tax return — the tax authority calculates the tax based on the State Register of Property Rights. It sends a tax notice with the calculation by 1 July of the year following the tax year. The tax must be paid within 60 days of receiving the notice.

The notice may arrive by post or in the taxpayer's electronic account. If you bought an apartment during the year, tax is charged from the month in which ownership arose.

If No Notice Arrives

Not receiving a notice doesn't release the owner from the obligation to pay. If you know you own property above the exempt area and there's no notice, contact the tax office for a reconciliation.

How to Check and Challenge the Calculation

Mistakes happen: the wrong area, an exemption not applied, double charging after a sale. You have the right to ask the tax office to reconcile:

• the number and area of properties;
• eligibility for exemptions;
• the rate;
• the amount charged.

Submit an application with copies of documents confirming ownership, area or exemption. If the error is confirmed, the tax office will cancel the notice and send a new one. If not, the notice can be appealed administratively or in court.

Property Tax and Renting Out

If you rent out an apartment, the owner pays the property tax, but the lease can provide for the tenant to compensate it. Rental income is taxed separately — see rental income tax.

Property Tax and Buying a Home

When buying an apartment, especially a large one, factor the future tax into the cost of ownership, as we did in rent vs buy. If you already own an apartment, buying a second one may "use up" the exempt area. For investors this is an important factor in yield — see real estate investment.

Don't Confuse It With Other Payments

• Land payment (land tax or rent) is a separate local payment for owners and users of land plots. More in buying a land plot.
• Taxes on sale — income tax, military levy and state duty, covered in property sale and purchase taxes.
• Building maintenance and capital repair contributions aren't a tax but payments to the condominium association or building manager. See how to create a condominium association.

Tax for Legal Entities and Sole Proprietors

Legal entities calculate the tax themselves and file a return by 20 February. They don't get an exempt area. Sole proprietors who use property in their business pay the tax as individuals, but some councils set separate rates for non-residential premises. If you're buying commercial premises, include the tax in your business plan.

How to Check Your Data Online

The easiest way to track charges is through the taxpayer's electronic account on the tax service website. You can log in with a qualified electronic signature or Diia.Signature. The account shows:

• tax notices and calculations;
• your balance with the budget — charges, payments, overpayments and debts;
• payment details for your community;
• the option to submit a reconciliation request without visiting the tax office.

It's also useful to get an information extract from the State Register of Property Rights: it shows which properties and areas are registered to you. If it contains outdated data — for example, an apartment you sold long ago but the deal wasn't entered into the electronic register — it should be corrected.

The Owner's Calendar

• 1 January — the minimum wage used for the year's rate is fixed.
• During the year — changes in ownership are counted by month.
• By 1 July of the following year — the tax office sends the notice.
• 60 days after receipt — the payment deadline.
• Any time — you can request a reconciliation.

A Note for Foreign Owners

Non-resident individuals who own apartments or houses in Ukraine are also property tax payers and are entitled to the same exempt area as Ukrainian citizens. The main practical difficulty is receiving the tax notice: if you live abroad, make sure the tax office has your current contact details, consider giving a trusted representative a power of attorney, and check your electronic taxpayer account regularly. Unpaid tax accumulates penalties and may surface as a tax lien when you decide to sell — exactly when you least want delays.

Penalties for Non-Payment

Late payment incurs a penalty, and the tax office may impose a fine. A tax debt is grounds for a tax lien on the property, which will complicate its sale. So it's better to pay on time and, if you disagree, to appeal the notice rather than ignore it.

Frequently Asked Questions

Do I have to pay tax on an apartment I don't use? Yes. The tax is paid for owning, not using.

Is the balcony area included? Tax is calculated on the total area stated in the ownership documents. How balconies and loggias are counted is determined by the technical documentation.

What if the apartment was destroyed? The law provides an exemption for property destroyed or damaged by hostilities, subject to confirmation. See how to get compensation in compensation for damaged and destroyed housing.

Can pensioners get an exemption? Exemptions for specific categories are set by local councils. Check your community council's decision.

Is tax charged on a new-build apartment whose ownership isn't registered yet? No, tax is charged from the moment ownership is registered.

Who pays tax for the year in which the apartment was sold? The tax is split between the seller and buyer by months of ownership: the seller pays for the months before the deal, the buyer from the month in which ownership arose.

Will redevelopment change the tax? If a legalized redevelopment changes the total area in the documents, the tax base changes too.

Conclusion

Property tax only affects owners of large areas or several properties. Check the combined area of your housing, find the local council's rate decision and calculate the amount using the formula. When you receive a notice, check the data and, if there's a mistake, contact the tax office. It's a local tax: all the money stays in your community's budget.

Sources

• Tax Code of Ukraine — Articles 265, 266.
• State Tax Service of Ukraine — clarifications and directory of local tax rates.
• Law on State Registration of Property Rights to Real Estate and Their Encumbrances — the data source for tax assessment.

Read Also

• Property sale and purchase taxes
• Rental income tax in Ukraine
• Real estate investment in Ukraine
• Buying a land plot: a step-by-step guide