How much will you have to pay per square meter of property in Ukraine from Jan. 1?
The rate of Ukraine’s property tax will be increased from Jan. 1, 2022, due to the minimum wage rising to UAH 6,500 as of the beginning of the year.
That’s because according to Ukrainian law, the property tax rate should be not less than 1.5 percent of the minimum Ukrainian wage. So from the beginning of the year, the tax rate per square meter will be UAH 97.50 (1.5 percent of 6,500 = 97.5).
At the same time, tax payers are obliged to pay a separate tax for the ownership of real estate only if its area exceeds:
• 60 square meters for apartments;
• 120 square meters for houses;
• 180 square meters for an apartment and a house together;
The “luxury taxes” in the Tax Code are defined as the property tax, transport tax and land payments.
As a reminder, the taxation of real estate transactions has also changed due to adoption of Bill 5600.
In particular, a 5 percent tax shall be paid to the government on the second sale in a year of a residential property, if that property has been owned by the seller for more than three years. For the third and subsequent transactions, the tax rate is 18 percent.
Follow us on Twitter, Facebook and Google News
