This year, the agency has proposed revising the range of property tax rates that local authorities may set. Starting January 1, 2027, the tax rate for real estate properties may range from 0.05% to 1%, depending on the decision of local authorities.
This change is linked to a general revaluation of real estate, which has brought the cadastral value of properties significantly closer to market value. As experts note, it has increased approximately threefold.
However, this is not enough to replenish local budgets. For example, local government representatives have been proposing for many years that personal income tax be levied based on a person’s place of residence rather than their place of work. Previously, the Ministry of Finance had promised to introduce this measure starting in 2027, but it is not included in the new draft either. Mayors also voiced proposals regarding the road fund and other issues.
Viktoria Belous emphasized the importance of dialogue with local authorities when finalizing the Ministry of Finance’s proposals, in order to take into account their impact on local budgets.
The Ministry of Finance will continue consultations on tax policy for 2027.
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