Ukraine

In Ukraine, real estate taxes are regulated by the central government and local municipalities. The key types of taxes related to real estate in Ukraine include:

Property Ownership Tax

Real Estate Tax (Податок на нерухоме майно): Real estate tax in Ukraine applies to both residential and non-residential properties, with the tax rate varying depending on the property's location, type, and purpose.

• For residential properties, the tax is calculated based on the size of the property, usually per square meter of living space.
• The tax rate for residential properties is typically 1.5% of the minimum wage per square meter, which is updated annually. For 2024, this is approximately UAH 60 per square meter.
• For non-residential properties, the tax rate can be higher, with a maximum of 3% of the minimum wage per square meter, depending on the municipality.
• The tax is usually paid annually and is the responsibility of the property owner.

Real Estate Transfer Tax

The real estate transfer tax applies when the ownership of a property is transferred, such as during a sale or inheritance.

• The standard real estate transfer tax rate is 1% of the property's sale price or market value, whichever is higher.
• The transfer tax is typically paid by the buyer, but the parties may agree to a different arrangement.
• There are exemptions for properties inherited or transferred within the immediate family (such as between spouses or children).

Capital Gains Tax on Real Estate

Capital gains tax is applicable when a property is sold at a profit, though exemptions may apply for properties that were the primary residence of the seller.

• The general capital gains tax rate on real estate sales is 18% of the profit made from the sale (the difference between the sale price and the purchase price).
• If the property has been owned for more than 3 years, the sale may be exempt from capital gains tax.
• Properties that were used as the seller's primary residence for at least 3 years are also exempt from capital gains tax.

Inheritance and Gift Tax

Ukraine does not currently have an inheritance or gift tax, but there are tax implications when property is sold after inheritance or gifting.

• While there is no inheritance or gift tax, any capital gains tax may apply if the property is sold after it is inherited or received as a gift.

Municipal Tax

Some municipalities in Ukraine impose additional local taxes or fees related to property ownership, such as for waste disposal or property maintenance services.

Income Tax on Rental Income

If rental income is generated from real estate, it is subject to income tax, which is generally applied at the individual tax rate.

• Rental income is subject to a flat tax rate of 18%, which is part of the personal income tax rate in Ukraine.
• Property owners may be able to deduct certain expenses related to the property, such as maintenance costs and property management fees, from their taxable rental income.