- what property is subject to taxation?
- what exemptions are available?
- what are the tax rates for apartments?
- what are the tax rates for apartments (non-residential)?
- do the rates differ for Ukrainian citizens and foreigners?
- what are the rates in the areas adjacent to Odesa?
- how does the payment process work?
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What property is subject to taxation?
Both residential and non-residential property are subject to tax.Sometimes developers design and sell a complex of apartments instead of a residential building. In such buildings, the premises will have non-residential status. Often the first and last floors of residential buildings are creative studios or office spaces.
At the same time, the tax rates for non-residential property are higher.What exemptions are available?
If you own an apartment with an area of less than 60 square meters, you are exempt from paying the tax.If the area of your apartments exceeds 60 square meters, for example, 100 sq. m, then you need to pay the tax for the excess, for 40 sq. meters.
This exemption will not apply if you own apartments with a total area of 300 square meters. There will also be no exemptions if you rent out an apartment or engage in entrepreneurial activity.There are no exemptions for non-residential premises.
What are the tax rates for apartments?
Property tax is a local tax. The rates are set by local councils. They are tied to the size of the minimum wage.In Odesa, for housing, the tax rate is 0.1 percent of the minimum wage per square meter of area.
As of January 1, 2021, the minimum wage is set at 6,000 hryvnias.That is, the tax amount is 6 hryvnias per square meter. For example, for an apartment with an area of 100 sq. meters, with an exemption of 60 sq. meters, you will need to pay 240 hryvnias per year. This is less than 10 US Dollars.
What are the tax rates for apartments (non-residential)?
For non-residential premises, the rates are usually significantly higher. In Odesa - 1% of the minimum wage.That is, the tax rate is 60 hryvnias per square meter. For example, for apartments with an area of 100 sq. meters, you will need to pay 6,000 hryvnias per year. This is slightly more than 200 US Dollars.
Do the rates differ for citizens of Ukraine and foreigners?
The tax rates do not depend on citizenship or residency. The only difference is that Ukrainian citizens receive a notification from the tax authorities with the calculation of the amount to be paid at their place of residence, and non-residents - at the location of the property.What are the tax rates in the areas adjacent to Odesa?
Today, large-scale residential construction is being carried out in four areas adjacent to Odesa:- Array No. 10, Residential Array Druzhny - belongs to the Tairovsky village council. Rate 30 UAH / sq. m. I remind you - within the city of Odesa - 6 hryvnias.
- Fields in the area of 7 kilometers of Ovidopolskaya Road (Avangard) - 12 UAH sq. m.
- Almost all construction on Sakharova Street belongs to the Kryzhanovka village council - and the rate here for housing is 60 hryvnias per sq. meter.
- New buildings in the area of the Riviera shopping center - this is Fontanka. The rate is the same as in Odesa - 6 hryvnias per sq. meter.
How does the payment process work?
If you purchased or already own property in 2021, then by July 1, 2022, the tax service should send you a notification with the calculation of the tax amount.From the moment you receive the notification, you have 60 days for payment.
At the same time, if the tax authorities did not send a notification, the responsibility for late payment of the tax is removed from you.
If the tax authorities regularly does not send notifications, the maximum period for which they can subsequently charge property tax is 3 years.Links to the tax code and approved tax rates:
Tax Code https://zakon.rada.gov.ua/laws/main/2755-17#n6392 Odesa City Council. Property Tax Rates https://omr.gov.ua/ua/business/tax/nalog-na-nedvijimoe-imuschestvo-otlichnoe-ot-zemelnogo/ Fiscal Service. Local tax rates in Odesa region https://tax.gov.ua/podatki-ta-zbori/stavki-mistsevih-podatkiv-ta-zboriv/odeska-oblast/dlya-fizichnih-osib/
