Current changes in real estate legislation in 2025

The year 2025 brought a number of important changes to the real estate sector in Ukraine. Owners, buyers, sellers, and investors should carefully review the updates to avoid unforeseen expenses and legal risks.

📈 1. Increase in military tax on real estate sales

Since December 2024, the military tax rate on real estate sales has increased from 1.5% to 5%. This significantly increases the tax burden on sellers. For example, when selling an apartment for UAH 1,000,000, the military tax will be UAH 50,000, instead of UAH 15,000 previously.

🏠 2. Changes in property tax

In 2025, the maximum property tax rate for each “extra” square meter increased to UAH 106.5. The following are subject to taxation:

• apartments with an area of more than 60 square meters;
• houses with an area of more than 120 square meters;
• other residential properties over 180 square meters.

For example, the owner of an apartment with an area of 65 square meters will pay tax for 5 square meters, which is 532.50 UAH.

🏗️ 3. Increase in VAT for new buildings

The government has introduced an increase in the VAT rate for new buildings, which will affect the cost of construction and, accordingly, prices for end buyers. This could lead to a 10-20% increase in housing costs.

📊 4. Updated real estate classification

In 2025, a new classification of buildings and structures came into force, changing the approach to determining types of real estate. This may affect the tax categories of some properties, especially commercial real estate.

🛡️ 5. Risks of property loss due to technical errors

In 2025, the risk of property loss due to technical errors or interference with the State Register of Property Rights is increasing. Such registration can be canceled either in court or by filing a complaint with the Ministry of Justice.

The team of specialists at the real estate and inheritance law firm KUPCOVA (LLC KUPCOVA) offers professional legal support in the field of real estate, helping clients adapt to new legislative changes and protect their interests.