Property Tax in Ukraine

Property taxation in Ukraine includes annual property tax on large apartments, land tax, and transfer fees. This guide covers the various property-related taxes that property owners and investors need to understand.

Annual Property Tax

Ukraine imposes an annual property tax on residential real estate exceeding certain size thresholds:

• Apartments: Tax on area exceeding 60 sqm
• Houses: Tax on area exceeding 120 sqm
• Combined ownership: Tax on area exceeding 180 sqm
• Rate: Up to 1.5% of minimum wage per sqm (approximately UAH 90/sqm in 2026)

Land Tax

Land tax is levied on landowners at rates varying by land type and location:

• Agricultural land: 0.5-1% of normative value
• Commercial land: Up to 3% of normative value
• Residential land: 0.5-1.5% of normative value

Property Transfer Fees

When buying or selling property, the following fees apply:

• Registration fee: 1% of property value
• Notary fees: Vary by region and complexity
• State duty: Fixed amount
• Pension fund fee: 1% on first property purchase

Capital Gains on Property

Gains from the sale of property are taxed as follows:

• Held >3 years: 0% (one sale per year exemption)
• Held <3 years: 18% PIT + 1.5% military levy = 19.5%
• Non-residents: Higher withholding tax may apply

Rental Income Taxation

Rental income from property is taxable as follows:

• Individuals: Net rental income at 18% PIT + 1.5% military levy
• Corporations: Included in business income, taxed at 18% CIT
• Simplified system: 5% of gross rental income for individual entrepreneurs

Tax Planning for Property Investors

• Hold property through a company for tax advantages
• Depreciation deduction for rental properties
• Mortgage interest deduction against rental income
• Consider FOP simplified regime for rental activities