New rules for the land tax payment: avoiding double payment will become easier

Procedure for the land tax payment in case of a change in the real estate owner was simplified from October 1, 2025.

If obligation to pay the land tax is transferred to another person due to a change in the real estate owner, the tax amount paid by the previous user may be credited against future payments by the new user of the land plot.

This is possible provided that the new owner (user) reimburses amount paid to the previous payer based on the conclusion of regulatory authority.

Such innovations were introduced by the Law of Ukraine № 4536-IХ as of 16.07.2025, which entered into force on 01.10.2025.

According to Article 120 of the Land Code of Ukraine:

- in case of acquisition of ownership of a house, building or structure, the land plot ownership on which object is located is transferred to the new owner automatically;

- if the land plot is in use (in particular, leased), then the usage right to it is also transferred to the real estate purchaser.

Ownership or usage rights to the land plot arise from the moment of its state registration. Land owners and land users begin to pay the land tax from the emergence date of relevant right.

New rules are aimed at simplifying process of transferring obligation to pay the land tax in the process of changing the property owner, avoiding double payment and increasing transparency of settlements with the budget.

For reference.

Law of Ukraine № 4536-IХ as of 16.07.2025 “On amendments to the Tax Code of Ukraine and other Legislative Acts of Ukraine in connection with adoption of the Law of Ukraine “On the integrated prevention and control of industrial pollution” and in order to improve certain provisions of tax legislation”.