Flat tax 2026: who has to pay for ‘excess’ square metres and what constitutes ‘luxury’
The State Tax Service states that the tax is levied on the total area of residential and non-residential property.
The tax rate is set by local councils, but it may not exceed 1.5 per cent of the minimum wage (as at 1 January of the reporting year) per square metre.
Specifics for individuals
- How it is calculated: The tax authority at the property owner’s place of registration calculates the tax amount.
- Notification: The taxpayer receives a notification-decision setting out the calculated amount and payment details by 1 July of the year following the reporting year.
Exempt areas (tax reduction): The tax is levied on the area exceeding the established limits:
- For flats – the tax is calculated on the area minus 60 square metres.
- For houses – after deducting 120 square metres.
- For mixed property types (flat + house) – after deducting 180 square metres.
Exceptions: Exemptions do not apply if the property is let, used to generate income, or if the property’s area exceeds 300 square metres for a flat, 600 square metres for a house, or 900 square metres for a combination of both.
Additional tax: If an apartment is larger than 300 square metres or a house is larger than 500 square metres, 25,000 hryvnias is added to the tax amount for each such property.
Exemptions: Local councils may grant additional exemptions to individuals, taking into account their financial circumstances and income.
Specifics for non-residential property
The tax is calculated by multiplying the total floor area of each property by the tax rate. Exempt square metres do not apply here.
Specifics for legal entities
Legal entities calculate the tax amount themselves as at 1 January of the reporting year and submit a tax return. Exemptions reducing the tax base by 60, 120 or 180 square metres do not apply to them.
As a reminder, it was previously reported that OLX has launched a property search platform in Ukraine.
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