The minimum property tax rate, including land tax, may increase from 0.05% to 0.1%, starting January 1, 2027
At the same time, the maximum tax rate may be set at 1%. The relevant amendments to the Tax Code are provided for in the draft tax policy for 2027. Currently, a minimum rate of 0.05% of the taxable base applies to residential real estate, garages, summer homes, and garden plots; 0.1% applies to agricultural land with structures; and 0.3% applies to non-residential real estate. The specific tax amount is set annually by local public authorities. The Ministry of Finance proposes retaining the right of local authorities to independently determine rates, but within a new range—from 0.1% to 1%, including land tax. The Ministry explains the need for these changes by citing the update of the cadastral valuation of real estate, which should be as close as possible to the market value of the properties. According to the Ministry’s assessment, this will create a more flexible and coordinated system for setting local taxes while maintaining the predictability of the tax system. At the same time, local authorities will be able to adapt the tax burden to the socio-economic characteristics of each administrative-territorial unit. At the same time, the option to increase the tax by up to 300% remains for neglected buildings and land plots in populated areas, as well as for agricultural land that has not been cultivated for two consecutive years—the increased tax will apply starting from the third year. In addition, the bill proposes to abolish the list of entities eligible for property tax exemptions, while local public authorities will be delegated the authority to provide compensation for property tax payments based on principles of fairness. As noted by the Ministry of Finance, this approach will allow local tax policies to be adapted to the socio-economic situation of each administrative-territorial unit, while ensuring consistency in the regulatory framework and maintaining uniform guidelines at the national level. // 15.06.2026 – InfoMarket.
