Who is required to pay real estate tax in 2025?

In 2025, taxpayers must pay real estate tax for the reporting year 2024. Accordingly, individuals who owned taxable real estate objects in 2024 are obligated to pay this tax. Both individuals and legal entities, including non-residents who own residential and non-residential properties, may be subject to this tax.

Which properties are taxable and which are not?

According to the Tax Code of Ukraine, taxable objects include both residential and non-residential real estate, including shared ownership. Residential real estate encompasses buildings officially registered as such, including summer houses and garden houses. From this definition, it follows that non-residential real estate includes buildings and premises not classified as residential. Offices, commercial buildings, industrial facilities, as well as hotels, garages, warehouses, and other structures, fall under the category of non-residential real estate.

On the other hand, unfinished construction projects are not classified in the Tax Code as taxable real estate objects.

There are also certain exceptions. The Tax Code lists around 16 categories of real estate that are not subject to taxation, most of which have specific special purposes. Therefore, it is not necessary to cite the entire list in full.

How to correctly calculate the real estate tax amount

The exact amount of real estate tax can be determined after performing certain calculations. Importantly, the tax rate cannot exceed 1.5% of the minimum wage as of January 1 of the reporting year, per 1 square meter of taxable area. Thus, the tax rate set by the local authorities where the real estate is located must be multiplied by the number of square meters exceeding the established exemption limits — this will yield the tax amount.

To facilitate the calculation for taxpayers, the State Tax Service offers an online “Real Estate Tax Calculator for Individuals” on its official website. After entering the necessary data, the calculator provides the amount payable. Taxpayers only need to know the applicable tax rate based on the location of their property — this information is also available on the website of the State Tax Service or the relevant local authorities. The calculator is particularly useful for those who owned real estate for only part of the year.

The tax amount also depends on the number, type, and area of real estate objects. If an individual owns only one property, tax is levied on the area exceeding 60 m² for an apartment and 120 m² for a house. If the person owns multiple properties of the same type, such as several apartments or houses, the total area of all such properties is considered. If the individual owns different types of real estate — for example, both an apartment and a house — the tax is calculated based on the total area of all these properties combined. When multiple real estate objects are involved, the total tax is proportionally distributed based on the area of each individual property.

In general, calculating the tax amount independently is not mandatory. The State Tax Service calculates the amount based on data from the State Register of Property Rights to Real Estate. However, calculating it independently can help taxpayers prepare the required sum in advance and double-check the accuracy of the figures indicated in the tax notice.

Tax rates and calculation specifics for different types of property

As noted earlier, local authorities set the tax rate as a percentage of the minimum wage for the reporting year, but no more than 1.5%.

If, however, the village, settlement, or city council does not approve new tax rates for the upcoming year, the rates that were in effect until December 31 of the previous year continue to apply.

If a taxpayer owns residential property (including shares thereof) with a total area exceeding 300 m² for an apartment or 500 m² for a house, then, in addition to the general tax amount, an extra UAH 25,000 per year is added for each such property, in accordance with the Tax Code.

Property Tax on Jointly Owned Assets: How to Determine Each Owner’s Share

According to the Tax Code of Ukraine, if a residential or non-residential property is held in joint partial ownership by several individuals, each person is a taxpayer for their respective share of the property.

If the property is held in joint common ownership and has not been physically divided, the co-owners must designate, by mutual agreement, one individual owner who will be responsible for paying the tax. However, if the property has been divided in kind (i.e., physically separated), then each person pays the tax corresponding to their allotted portion.

Benefits, Exemptions, and Special Conditions Under Martial Law

In addition to the real estate categories identified as not subject to taxation, there are certain benefits and special conditions tied to the current state of martial law.

Specifically, tax exemptions apply to property registered in the State Register of Property Damaged or Destroyed as a result of military actions, terrorist acts, or sabotage caused by the armed aggression of the Russian Federation against Ukraine. Additionally, the property must be located in areas listed in List No. 309, issued by the Ministry for Reintegration of the Temporarily Occupied Territories of Ukraine.

No real estate tax is charged or payable on destroyed property.
For damaged property, the situation is somewhat different: residential and non-residential property damaged in 2022 is exempt from taxation during its restoration period (i.e., while repairs are underway). The tax obligation resumes from the month following the one in which the property is officially recorded as restored, reconstructed, or rehabilitated, and deemed fit for habitation or intended use, based on the data in the Register.

For property damaged after January 1, 2023, real estate tax is not accrued or paid from the first day of the month when the damage was officially registered in the Register until the first day of the month following the one in which the property is declared habitable or usable, i.e., after major repairs are completed.

As for property that sustained minor damage and remains habitable or fit for intended use (only requiring minor repairs, not major reconstruction), local self-government bodies, such as village, settlement, city councils, military administrations, or civil-military administrations have the right to establish benefits or exemptions from the real estate tax — however, they are not obligated to do so.

Since January 1, 2023, no real estate tax is levied on residential and non-residential properties located in territories of active hostilities or temporarily occupied by the Russian Federation, as listed in List No. 309 of the Ministry for Reintegration of the Temporarily Occupied Territories of Ukraine.

Additionally, based on decisions made by local authorities, real estate located in mandatory evacuation zones may also be exempt from taxation.

How and When the Tax is Paid: Notifications, Deadlines, and Payment Methods
Individuals must pay the real estate tax within 60 days from the date the tax notice is delivered. These tax notices — which include the tax amount calculated in accordance with the Tax Code of Ukraine and the payment details — must be sent to the taxpayer by July 1 of the year following the reporting period.

Legal entities, on the other hand, must pay real estate tax quarterly by the 30th day of the month following the reporting quarter. That means the final payment date is the 29th day of the month following each reporting quarter. However, if this deadline falls on a weekend or public holiday, the payment is due on the next banking day.