Ukraine Tax Report for Foreign Investors
As of June 2006 the taxation of property in Ukraine is as follow:
- Currently there are no property taxes in Ukraine. As for the foreseeable future, the issue has just begun to be debated by the Ukrainian Parliament.
- Real estate taxes have different categories such as for real people (citizens of Ukraine as well as foreign citizens) and corporate entities.
Ukrainian Property Taxes:
Today real people (citizens of Ukraine as well as foreign citizens) and corporate entities pay practically no property taxes. The only "tax" that does exist is a required payment for public utilities, such as sanitation of 12 Hrn per year, about $2.
Corporate entities such as companies and organizations operating in Ukraine do pay some property taxes. But the taxation rate is only 1% of the evaluative cost of land. In the case of leasing land or property there are no taxes due.
As far as future taxation on property, the Ukrainian Parliament is considering a property tax plan with a size exemption for properties less than 104m2 that belong to natural people. Over that limit they are considering a tax rate of 0.5% per square meters above the 104m2 exemption.Corporation do pay taxes on property, but it is listed as a corporate assets and can be taxed through this means.