What should you know about paying land tax and rent in Ukraine in 2025?

In 2025, the matters of paying land tax and lease payments for land remain relevant for both owners and users of land plots. Local rates are changing, benefits are being updated, and calculation specifics for various taxpayer categories are being clarified. Below is an analytical overview of the key aspects: who pays, how the tax is calculated, what benefits exist, and how land rent differs from land tax.

Who and When Must Pay Land Tax
Primary taxpayers are:

• Owners of land plots and shares: legal entities and individuals — for land owned or in permanent use.
• Users of state or communal lands: for the right to permanent use and for renting land (cl. 14.1.72, 269.1.1 of the Tax Code).

For individuals, the procedure is simple: a tax notification stating the amount due arrives before July 1, and payment must be made within 60 days of receiving the document. Legal entities calculate and declare the land tax themselves every year (by February 20) and pay quarterly.

Object and Calculation of Land Tax
The object is land plots (ownership or use) and land shares. The plot must be registered under the Law “On the State Land Cadastre”.
The rate is set by local authorities and may not exceed 1.5% of the minimum wage per square meter (in 2025 — up to UAH 106.50/sq.m). Rates vary locally, so you need to check your council or tax office’s notices.

Example Calculation
The local council set a 1% rate (7,100 × 1% = UAH 71/sq.m).
Land plot — 0.10 ha (1,000 sq.m).
Annual tax: 71 × 1,000 = UAH 71,000.

Tax Benefits for Individuals and Legal Entities
For individuals
Benefits under Article 281 of the Tax Code apply to certain groups, within area limits for each use type:

• Persons with disabilities (groups I–II)
• Old-age pensioners
• Parents with three or more underage children
• War veterans, combat participants
• Chernobyl disaster victims

These groups are exempt from tax on:

• household farming — up to 2 ha,
• personal summer cottage — up to 0.10 ha,
• garages — up to 0.01 ha,
• gardening — up to 0.12 ha.

Benefit on lease to a single tax payer (Group 4)
If the owner leases land to a Group 4 single tax payer, the owner is exempt from land tax during the lease (except for emphyteusis).

For legal entities
Benefits are set only by the local council — check your region.

Key Land Rent Payment Rules
Land rent is paid for use of state or communal lands by agreement:

• Tenants can be individuals or legal entities renting land by contract.
• The amount is agreed in the contract and cannot be lower than the land tax, nor higher than 12% of the normative monetary valuation (for typical cases; may be higher by tender).
• For certain lands (mountain pastures, Olympic training bases, etc.), there are upper limits — for Olympic bases, up to 0.1% of the valuation.

Rent is paid monthly in equal parts at the land’s location, within 30 calendar days of each month’s end.

Rent benefits
In some cases, rent is not charged:

• for conserved lands (under the relevant land management project);
• for lands polluted by explosive materials or in combat zones — rent is not required for the entire period of clearance;
• for lands in legislatively defined areas (hygiene or protection zones, etc.).

What to Check Before Payment

• Ownership or use rights must be documented and registered.
• Rates/benefits — check for your specific council.
• Payment deadlines: individuals — 60 days after notice, legal entities — quarterly by return.
• Lease/emphyteusis conditions — benefit rules vary significantly.

Liability for non-payment
Late land tax or rent payments incur interest and fines under the Tax Code (Articles 123, 124). Tax authorities may automatically charge the debt and collect funds extra-judicially.

Key changes for 2025
Rates for the new year are set by councils by July 15 of the previous year. During martial law, certain zones, plots and individuals may be temporarily exempt (check the local tax office).
For major residential real estate (“luxury tax”), an additional annual payment of UAH 25,000 applies for each property over 300 sq.m (apartment) or 500 sq.m (house).

How to Avoid Extra Costs

1. Update the land’s status — check registration and intended use.
2. Verify rates, benefits and deadlines with your local council or the tax office.
3. If eligible for a benefit, submit an application to the tax authority.
4. Specify special conditions and maximum rent/benefit amounts in tenancy agreements.
5. Pay on time — fines and interest can significantly increase the debt.

Svitlana Krutorohova — Attorney, WINNER Law Firm.
If you have questions or problems related to land tax and rent payments, seek professional advice.