The study found that positive changes have been observed in recent years in the registration of residential properties owned by citizens, as well as additional structures located on their premises, in the cadastre system.

In particular, the number of registered residential properties has increased by nearly 700,000 compared to 2020. This has contributed to the formation of additional sources of revenue for local budgets through property and land taxes.

At the same time, the study identified a number of systemic issues in registering additional structures in the cadastre database. In particular:

the tax base has not been fully established because construction carried out by citizens on their own land plots has not been properly formalized or reflected in cadastral records;

studies conducted in certain regions revealed significant discrepancies between the actual condition of construction facilities and cadastral data. These discrepancies are resulting in reduced property tax revenues for local budgets;

the authority of cadastre and construction bodies to access construction sites located on land plots owned by individuals for inspection purposes has not been sufficiently defined. As a result, the process of identifying additional structures, formalizing them, and including them in the tax base has become more complicated;

in recent years, the number of cases involving the conversion of non-residential properties into residential premises has increased. Cases were identified where permits had been issued without full compliance with established requirements and conditions, resulting in a reduction of the tax base and the loss of opportunities to create jobs.

To address the identified problems, it was proposed to introduce a systematic and regular inventory mechanism alongside the existing application-based system for registering real estate.

This would involve gradually conducting a comprehensive inventory of real estate properties across the regions, providing property owners with an opportunity to formalize identified additional structures, and recording previously unregistered properties in cadastral and tax databases.

In addition, proposals were developed to simplify the process for citizens of formalizing residential buildings and auxiliary structures, expand opportunities to use standard designs, establish clear requirements for changing the designated use of real estate properties, and prevent the unjustified conversion of properties located in areas suitable for industrial activities into residential premises.

Other proposals include increasing the responsibility of property owners, improving liability measures for unauthorized construction, and ensuring the timely recording of cadastral information in unified digital systems.

The implementation of these measures will contribute to establishing a complete and accurate register of real estate properties, expanding the tax base, and increasing additional sources of revenue for local budgets.