Compliance
Navigating War-Related Real Estate Tax Relief in Ukraine
Learn how owners of damaged or destroyed real estate can qualify for exemptions, reduced rates, and regain tax liabilities post restoration.
By NomadicTax Research Team • 5-8 min read • September 7, 2026
## What’s New: Tax Relief for War-Damaged Property
As of **3 September 2026**, Ukraine introduced rules allowing owners of real estate **damaged or destroyed due to hostilities** to **not pay real estate tax (excluding land plots)** for affected properties, provided the damage is recorded in the official State Register of Damaged and Destroyed Property. ([tax.gov.ua](https://tax.gov.ua/en/new-about-taxes--news-/1046758.html?utm_source=openai))
## Who Qualifies and When Relief Applies
- Properties in **Category II** (damage 41–80%) and **Category III** (81–100%, destroyed or unfit for use) qualify if they’re listed in the State Register and are undergoing major repairs, reconstruction or restoration. ([tax.gov.ua](https://tax.gov.ua/en/new-about-taxes--news-/1046758.html?utm_source=openai))
- For **minor damage** (Category I, ~40% or less), or when property still usable—local councils/military administrations may **reduce rate** or grant full **exemption** but it’s not automatic. Owners must **request it**. ([tax.gov.ua](https://tax.gov.ua/en/new-about-taxes--news-/1046758.html?utm_source=openai))
- During the period of repair, the property is **tax-free**, starting from the month damage is recorded until the month after restoration. After repairs, regular taxation resumes. ([tax.gov.ua](https://tax.gov.ua/en/new-about-taxes--news-/1046758.html?utm_source=openai))
## Practical Actions for Property Owners
1. **Register damage** – Ensure your property appears in the State Register. Use official damage reports from local authorities, military administrations, or law enforcement. Without registration, you’ll not qualify for relief. ([tax.gov.ua](https://tax.gov.ua/en/new-about-taxes--news-/1046758.html?utm_source=openai))
2. **Check the category** – Damage must be categorized. Major or destroyed properties (Categories II & III) are eligible; minor damage leads to discretionary treatment. ([tax.gov.ua](https://tax.gov.ua/en/new-about-taxes--news-/1046758.html?utm_source=openai))
3. **Inform local administration** – For minor damage, submit requests for reduced tax rate or exemption to local councils or relevant authorities. ([tax.gov.ua](https://tax.gov.ua/en/new-about-taxes--news-/1046758.html?utm_source=openai))
4. **Resume payment** once property declared fit for purpose** – After repairs, notify authorities and start paying property tax again as per law. ([tax.gov.ua](https://tax.gov.ua/en/new-about-taxes--news-/1046758.html?utm_source=openai))
## Why This Matters: Broader Implications
- Brings **predictability to distressed property owners**, reducing financial burden during reconstruction.
- Encourages **transparency and data collection** through the official register.
- Demonstrates balancing of tax authority’s fiscal functions with humanitarian priorities during wartime.
## Examples
- **Anna**, whose warehouse (Category II damage) was severely damaged, once her property appears in the State Register and she begins reconstruction, she pays **no tax** until restoration ends.
- **Bohdan**, with a small home needing only roof repairs (Category I), submits a request to his city council and may have a reduced rate or temporary exemption, depending on local decision.
## Steps You Should Take This Month
- Determine if your damaged property is listed in the official Register.
- Gather documentation of damage and status from local authorities.
- Contact your local tax office or council to clarify whether you’re eligible for reduced rates or exemptions.
- Keep records of when damage was first documented and when repairs completed—these dates govern when relief begins and ends.
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**Bottom line**: If your property has war-related damage, there are official paths to tax relief—but only if you have proper documentation and take proactive steps.