Updated Land Tax Relief Provisions
The State Tax Service of Ukraine has announced new land tax relief measures and exemptions for specific groups of citizens, with rules also varying based on the land's designated use. These changes are designed to ease the financial burden on vulnerable segments of the population. Notably, individuals with disabilities, pensioners, war veterans, and Chornobyl disaster responders are among those now eligible for full tax exemption.
While landowners in Ukraine are generally obligated to pay the tax, a key wartime provision suspends charges for state and municipally owned plots located in active combat zones or under occupation. For homeowners whose property has been destroyed by hostilities, it is crucial to register the damage in the Damaged Property Registry via the Diia portal. Following official documentation, owners become eligible for relief, the extent of which depends on the level of destruction.
Requirements for Owners of Destroyed Homes
For owners of destroyed residential property, the tax-exempt area limits are as follows:
- Up to 0.25 hectares in villages;
- Up to 0.15 hectares in urban-type settlements;
- Up to 0.1 hectares in cities.
Both legal entities and private individuals receive a 100% exemption on the area if over one-third of the total property is destroyed, or a 50% exemption for lesser damage. Age-based pensioners are exempt from the tax but must submit a corresponding application by May 1. The conditions for individuals with disabilities depend on their officially assigned disability group.
The Tax Service clarified that exemptions within set limits for land use apply to all taxpayers. No tax is levied on plots of the following sizes for their intended purposes:
- Up to 2 hectares for personal farming;
- Up to 0.25 hectares in villages, 0.15 hectares in settlements, and 0.1 hectares in cities for housing construction and maintenance;
- Up to 0.1 hectares for individual dacha (summer house) and garage construction;
- Up to 0.12 hectares for horticulture.
These legislative amendments to the land tax code aim to support socially vulnerable groups during the difficult economic conditions caused by the ongoing war in Ukraine. The introduction of relief for persons with disabilities, pensioners, and war veterans can significantly improve their financial situation, particularly amidst rising costs for housing and services.
This demonstrates the state's efforts to address citizens' needs during a time of crisis.