At the beginning of 2024, new rules regarding the taxation of luxury cars and real estate came into force in Ukraine, which will significantly affect the owners of this type of property. These changes are part of a broader reform of the tax system and are aimed at increasing state budget revenues and reducing social inequalities.
What is a luxury tax?
A luxury tax is a form of property tax levied annually on owners of expensive vehicles and large estates. Depending on the object, luxury tax includes transport tax and real estate tax.
Which cars are subject to tax in 2024?
Transport tax is levied on passenger cars, the age of which does not exceed 5 years. The Ministry of Economy of Ukraine annually determines the average market value of a car, which is the basis for calculating the tax. This year, the average market value threshold is UAH 2,662,500, which is equal to 375 minimum salaries.
The list of taxable cars includes such brands as Aston Martin, Audi, Bentley and others. Real estate and taxes
Owners of apartments with an area of more than 300 square meters. m and buildings with an area of more than 500 square meters. m are also subject to the luxury tax.
Local authorities set a tax rate that cannot exceed 1.5% of the minimum wage on January 1 of the reporting year for each square meter.
Real estate taxation in wartime conditions
In response to the ongoing hostilities, the Tax Code of Ukraine has been supplemented with new provisions allowing for a reduction or even cancellation of tax for owners of real estate damaged by hostilities but still usable.
