Property tax for individuals: rules, deadlines and liability
Tamara Kameneva, Adviser on Tax Law and Accounting
Who pays the tax
Individuals — including non-residents — who own residential or non-residential property are liable for the tax. Where property is held in shared ownership, each co-owner pays in proportion to their share. In joint ownership without a physical division, one person is designated as the payer by mutual agreement.
Taxable objects
The tax applies to residential and non-residential property, including shares thereof.
Tax reliefs
- For apartments — base reduced by 60 sq m.
- For houses — by 120 sq m.
- For combined ownership (apartments + houses) — by 180 sq m.
Tax rates
Local councils set the rate, capped at 1.5% of the minimum wage per square metre.
Additional liabilities for large properties
If an apartment exceeds 300 sq m or a house exceeds 500 sq m, an additional UAH 25,000 per year is added per such object (or share). This is calculated separately, on top of the base tax.
Calculation and payment
The tax authority calculates the tax based on data from the State Register of Property Rights. The tax notice is issued by 1 July of the year following the reporting year. Individuals must pay within 60 days of receiving the notice.
Liability for non-payment
- 5% of the tax liability for delays up to 30 days.
- 10% of the tax liability for delays over 30 days.
Individuals are exempt from liability for late payment if the tax notice was not delivered by 1 July of the year following the reporting year.
Change of owner during the year
If ownership transfers mid-year, the previous owner pays from 1 January to the month of transfer, and the new owner pays from the month of acquisition. The tax authority notifies the new owner once the change is registered.
Conclusion
Property tax is an obligation that cannot be ignored. Keep your details in the State Register up to date, watch for tax notices, and pay on time. When in doubt, consult a specialist.
«Understanding the rules in time is always easier than dealing with the consequences later.»