Land tax: who can receive benefits and how

Certain categories of citizens have a right to be exempted from paying land tax or to obtain tax benefits. This is provided for by the Tax Code of Ukraine (Article 281) and other regulatory acts. 

Categories of citizens exempted from the land tax (Article 281 of the Tax Code of Ukraine):

persons with disabilities of groups I and II;

individuals raising three or more children under the 18 years old age;

pensioners (by age);

war veterans and persons subject to the Law of Ukraine "On the status of war veterans, guarantees of their social protection";

citizens who suffered as a result of the Chernobyl disaster.

Limits standards of land area covered by the benefit:

for personal farming – up to 2 hectares;

for construction and maintenance of a residential building, outbuildings and structures (homestead plot): in villages – up to 0.25 hectares, in settlements – up to 0.15 hectares, in cities – up to 0.10 hectares;

for individual summer cottage construction – up to 0.10 hectares;

for construction of individual garages – up to 0.01 hectares;

for gardening – up to 0.12 hectares.

Benefits for land/share owners

Owners of land or shares leased to the single tax payer of Group IV are exempted from the land tax for a period of the lease duration.

Important!

If the one has several plots of the same type of use, to take advantage of the benefit it is needed to:

submit application to the Tax Service by May 1 indicating which plots the benefit applies to;

if right to the benefit arose during the year, submit application within 30 days. 

Benefit begins to apply from month following submission of application (or from the following tax year if deadlines are missed).

If right to the benefit is lost – tax begins to be accrued from month following the loss. 

Benefits during the martial law

Payment for land (land tax and rent for land plots of state and municipal property) is not accrued and paid, which is located:

in territories of active hostilities or temporarily occupied by the russian federation:

for individuals, the benefit was valid from 01.01.2022 to 31.12.2022,

for legal entities and individuals-entrepreneurs – from 01.03.2022 to 31.12.2022.

From 01.01.2023 – from the first day of month of the beginning and until the last day of month of the end of active hostilities/occupation. 

Dates are determined according to data of the List of territories in which hostilities are (were) ongoing or temporarily occupied by the russian federation, approved by Resolution of the Cabinet of Ministers of Ukraine.

From 01.05.2024 – in territories where the state electronic information resources operate.

Land areas subject to conservation or contaminated with explosives

Land owners may obtain tax exemption from the land tax payments if their land:

is under conservation,

is contaminated with explosives,

or is deemed unsuitable for use due to the threat of such contamination.

Decision to grant exemption is made by the village, settlement, city council or military/military-civilian administration (hereinafter – Councils).

Land plots in conservation

Tax is not accrued:

for the state and municipal land – from the first day of month of approval of the conservation project until the end of month in which land protection measures are completed (according to the State Land Cadastre);

for privately owned lands – from the moment data on land protection measures is entered into the cadastre until the end of month of the measures completion.

After the measures completion, the tax is resumed from the first day of the following month.

If the regulatory authority does not have data, the tax is calculated based on data submitted by the payer. In case of discrepancies, the regulatory authority transfers the tax amount within 10 working days.

Land areas contaminated with explosives

Tax is not accrued for the time when the plot is considered contaminated according to data of the State Land Cadastre: from the first day of month when the survey of territory by mine action operators begins;

until the last day of month when the plot is deemed suitable for use.

For territories with active hostilities or temporary occupation, this period is calculated from month after the end of hostilities or occupation, provided that the owner submits application and the Council adopts decision on benefits.

Tax is reinstated from the first day of month following the month in which the plot is deemed suitable.

Land areas with potential pollution threat

Tax is not accrued from the first day of month in which the Council makes decision to grant benefit (based on the owner’s application) and until the last day of month:

end of the benefit period,

cancellation of the decision,

beginning of the survey of plot by mine action operators.

If the regulatory authority does not have data, the tax is calculated based on the payer’s information; in case of discrepancies, it is corrected within 10 working days.

Councils may annually adopt decisions on individual tax benefits (with obligatory indication of cadastral numbers) upon the payer’s application.

Land plots on which residential and/or non-residential real estate objects have been destroyed as a result of hostilities:

Information about destroyed objects must be entered into the State register of property damaged and destroyed as a result of hostilities, terrorist acts and sabotage caused by the armed aggression of russian federation against Ukraine  

Land payment is not accrued or paid for land plots within the following areas:

for individuals - owners of destroyed residential real estate:

in villages - not more than 0.25 hectares,

in settlements - not more than 0.15 hectares,

in cities - not more than 0.1 hectares.

for individuals – owners of destroyed non-residential real estate:

100% of ​​the land plot area – if area of ​​ destroyed residential and non-residential real estate object is greater than or equal to 1/3 of the total land plot area on which such object was located;

50% of area – if such area does not exceed 1/3. 

Land payment is not charged or paid:

from month of the property destruction according to Register of damaged property, until the last day of month of the property restoration, abolition of the martial law, but not later than 01.01.2026.