The amount of tax on the sale or gifting of property in Ukraine is determined by several factors at once, and the final rate can range from 0 to 18%. This was explained in a comment to RBC-Ukraine by Ivan Topor, an attorney and head of the real estate and construction practice at the legal firm "De-Yure." The expert examined the key scenarios in detail: from the first sale of an apartment owned for more than three years to repeat transactions and gifting between relatives and non-residents.
First sale: when the tax is zero
According to the attorney, if a person sells property that has been in their ownership for more than three years and this is their first sale within the calendar year, the income received is not subject to tax: the personal income tax (PIT) rate and the military levy rate are both 0%. However, if the property has been owned for less than three years and was not acquired through inheritance, the income from the sale is taxable. In a typical situation, as Topor explains, the rate is 5% PIT and 5% military levy. Thus, the minimum tax burden on a "non-preferential" first sale is 10% of the income.
Repeat sales within a year: the rate rises
When real estate is sold more than once within a single calendar year, the tax burden can increase significantly. If the property has been owned for more than three years, the second sale is taxed at 5% PIT and 5% military levy. For non-preferential assets the logic is different: if the first case of the year involved non-preferential property and the second one also involves non-preferential property, the income from the second sale is taxed at 18% PIT and 5% military levy. For the third and subsequent sales of property within the year, the Tax Code provides for an increased rate — 18% PIT and 5% military levy. At the same time, the expert emphasizes that in determining the rate, it matters not only the sequential number of the contract within the year, but also which category — preferential or non-preferential — each specific asset belonged to.
Gifting: the degree of kinship decides everything
In the case of gifting property, the tax consequences arise primarily for the person receiving the gift, and the rate depends on the degree of kinship between the parties and their resident status. If both parties are residents of Ukraine and the property is gifted between family members of the first or second degree of kinship, a zero PIT rate applies and no military levy is paid. The first degree of kinship includes parents, a husband or wife, and children, including adopted ones; the second degree includes full brothers and sisters, grandparents, and grandchildren. If, however, the property is gifted between residents who are not relatives, the recipient pays 5% PIT and 5% military levy. This applies, in particular, to gifting between an uncle and a nephew or between persons with no family ties. The highest burden arises when one of the parties is a non-resident: in that case, the value of the gift is taxed at 18% PIT and 5% military levy, and the degree of kinship does not affect the rate.
Inherited property: a special exception
You do not need to wait three years to sell an inherited apartment without tax — the lawyer calls this one of the most important exceptions in Ukrainian tax legislation. If this is the first sale of property within the year, the income is taxed at 0% PIT and 0% military levy. Moreover, a special rule applies to inherited real estate with regard to subsequent transactions as well: the second, third, and subsequent sales of inherited assets may be subject to PIT at a rate of 5%, rather than 18%. The military levy remains unchanged at 5%. This makes inherited property significantly more "tax-friendly" when multiple transactions take place within a year.
Reducing the taxable base at the 18% rate
The expert draws attention to a significant mechanism provided for at the 18% rate: the law allows, in certain cases, to reduce the income from the sale by documented expenses incurred to acquire the property. "If an apartment was purchased for 2 million hryvnias and the income from its subsequent sale is 3 million hryvnias, then, with the proper documentation, the taxable income can be reduced to 1 million hryvnias," Ivan Topor explained. Therefore, the attorney notes, it is especially important to keep the purchase and sale contracts and all payment documents confirming the original value of the asset when making the third and subsequent sales.
It is worth remembering that, in addition to taxes on property transactions, Ukraine also has an annual property tax — the so-called "luxury tax" on "excess" square meters. RBC-Ukraine previously examined who must pay it in 2026, what preferential treatments apply, and under what conditions an additional 25,000 hryvnias is added to the amount.
