Inheriting and Gifting Real Estate in Ukraine: How to Register It and What It Costs

Passing an apartment to your children, inheriting your grandmother's house, gifting a share to your spouse — sooner or later these situations arise in every family. Proper registration determines not only the tax amount but whether disputes between relatives arise later. This article explains how inheritance and gifting of real estate work in Ukraine, what they cost and how to choose the best option.

The rules on inheritance are in Book Six of the Civil Code of Ukraine, gifts in Chapter 55, and taxation in Article 174 of the Tax Code.

Part 1. Inheritance

By Will and by Law

By will, property passes to the people chosen by the testator. A will is certified by a notary or other authorized persons and can be changed or revoked at any time.

By law, the estate is distributed among heirs in classes (Articles 1261–1265 of the Civil Code):

1. First class — children (including adopted), the surviving spouse and parents.
2. Second class — siblings and grandparents.
3. Third class — uncles and aunts.
4. Fourth class — people who lived with the deceased as one family for at least five years before death.
5. Fifth class — other relatives up to the sixth degree and dependants.

Each subsequent class inherits only if there are no heirs of the previous class, or they're disqualified, don't accept or renounce the inheritance.

The Compulsory Share

Even if a will names someone else, certain heirs are entitled to a compulsory share — half of what they would receive by law (Article 1241). These are minor and disabled adult children, a disabled widow or widower and disabled parents. A buyer of an inherited apartment should check that such persons' rights weren't violated — see how to check an apartment before buying.

Deadlines for Accepting an Inheritance

An inheritance opens on the day of death. Heirs have six months to accept it (Article 1270). The heir submits an application to accept the inheritance to a notary. Someone who lived permanently with the deceased at the time is deemed to have accepted unless they renounce within six months (Article 1268).

If the deadline is missed for a good reason, it can be extended by a court or with the written consent of the other heirs who accepted.

How to Register an Inherited Property

1. Get the death certificate.
2. Within six months, apply to a notary to accept the inheritance.
3. Collect documents: title documents for the property, proof of family relationship, an extract on the deceased's registered address.
4. Order a valuation — it's needed to set the tax base if the heir isn't a first-degree family member. More in property valuation.
5. Pay taxes if due.
6. After six months, get the certificate of inheritance.
7. The notary registers ownership in the State Register of Property Rights.

Inheritance Taxes

• 0% — for first-degree family members: parents, spouse and children, including adopted. Also 0% for people with Group I disability, orphans and children deprived of parental care.
• 5% income tax plus military levy — for other resident heirs (siblings, grandchildren, nephews and nieces, etc.).
• 18% income tax plus military levy — if either the deceased or the heir is a non-resident.

Heirs receiving a taxable inheritance must pay the tax before the certificate of inheritance is issued.

Part 2. Gifts

The Gift Agreement

Under a gift agreement, the donor transfers property to the recipient free of charge (Article 717). A gift of real estate must be in writing and notarized (Article 719). The recipient becomes the owner from the moment of state registration.

Key points:

• a gift is free — there are no counter-obligations;
• the donor can demand termination only in cases defined by law (for example, a deliberate crime by the recipient against the donor's life or health);
• gifting jointly owned marital property requires the other spouse's consent;
• if the owner is a child or children have rights in the apartment, guardianship permission is needed.

Gift Taxes

Income from receiving property as a gift is taxed at the same rates as inheritance (paragraph 174.6):

• 0% — for first-degree family members;
• 5% income tax plus military levy — for other residents;
• 18% income tax plus military levy — for non-residents.

The recipient pays the tax. The tax base is determined by valuation.

Gift or Inheritance: Which to Choose

A lifetime gift:

• the property passes immediately, without waiting six months;
• no risk of disputes with other heirs over this property;
• the recipient becomes the owner at once — the donor loses control;
• the compulsory share doesn't apply to gifted property.

Inheritance:

• the owner keeps control of the property for life;
• the will can be changed;
• heirs have to go through the acceptance procedure;
• disputes over the compulsory share are possible.

Alternatives

• A lifetime maintenance agreement (Article 744) — the acquirer receives the property and undertakes to support the transferor for life.
• An inheritance contract (Article 1302) — the acquirer undertakes to follow the transferor's instructions, and the property passes to them after the transferor's death.

These tools are useful when you need to combine transferring property with caring for an elderly person.

Inherited or Gifted Property in a Marriage

Property received by one spouse by inheritance or gift is their personal private property, not joint property (Article 57 of the Family Code). So as a rule the other spouse's consent isn't needed to sell it. But if its value increased substantially during the marriage due to joint spending (for example, a major renovation), the other spouse may claim a share.

Selling an Inherited or Gifted Apartment

Selling an inherited apartment is exempt from income tax if it's the first home sale of the calendar year — the three-year ownership requirement doesn't apply to inherited property. For gifted property, the three-year period runs from the date the recipient's ownership was registered. More in property sale and purchase taxes.

Inheritance in Wartime

Under martial law there are special rules: you can apply to any notary regardless of where the inheritance opened, special rules apply to property in temporarily occupied territories, and the fact of death can be established through a court. If an inherited home was damaged or destroyed, heirs may be entitled to compensation — see compensation for damaged and destroyed housing.

Tax Calculation Examples

Example 1. A son inherits his father's apartment valued at UAH 2,500,000. The son is a first-degree family member, so the tax is UAH 0. Costs are notary fees, valuation (may be needed to determine value) and registration.

Example 2. A niece inherits her aunt's apartment valued at UAH 1,800,000. She isn't a first-degree family member, so she pays 5% income tax (UAH 90,000) plus military levy on the same base. The taxes must be paid before the certificate of inheritance is issued.

Example 3. A grandmother gifts her grandson a house valued at UAH 1,200,000. The grandson isn't a first-degree relative, so the taxes are as in example 2: 5% income tax (UAH 60,000) plus military levy. It's often cheaper for the grandmother to gift the property first to the grandson's parent (her child) — tax-free — and for the parent then to gift it to their child — also tax-free. But that's two deals with notary costs, and each must be genuine, not a formality.

Preparing to Transfer Property in Advance

• Put the property documents in order: register ownership in the electronic register, legalize redevelopment, update the technical passport.
• Make a will if you want to distribute property differently from the law.
• Discuss plans with your family to avoid surprises and conflicts.
• Keep documents where your relatives can find them, or tell a notary where they are.

Common Mistakes

• Missing the six-month deadline for accepting an inheritance.
• An "oral" gift without a notary — such a deal is invalid.
• A gift instead of a sale to avoid taxes. A sham transaction can be invalidated, and the buyer risks losing both money and apartment.
• Ignoring other heirs' rights — the risk of court disputes.
• No valuation — without it the tax can't be determined.

Frequently Asked Questions

Can I renounce an inheritance? Yes, within six months, by applying to a notary. The renunciation can be in favor of another heir.

Who pays the deceased's debts? Heirs are liable for the deceased's debts up to the value of the inherited property.

Is a valuation needed for a gift between parents and children? No tax is due, but the notary may require a valuation to state the value of the subject of the agreement.

Can I gift a share of an apartment? Yes. Unlike a sale of a share, the other co-owners' pre-emptive right doesn't apply.

What if the heir is abroad? The application can be submitted through a consulate or by mailing a notarized application. You can also act through a representative with a power of attorney.

Can a foreign citizen inherit property in Ukraine? Yes, foreigners can inherit apartments and houses. However, they cannot keep agricultural land: if such land is inherited, it generally has to be sold (alienated) within the period set by law. Non-resident heirs also pay income tax at the higher rate.

Conclusion

Inheritance and gifts are the two main ways to pass real estate within a family. For close relatives both are tax-free, while for others the tax is 5% plus military levy. A gift offers speed and certainty, a will keeps control. It's important to meet deadlines, register everything with a notary and not try to disguise a sale as a gift.

Sources

• Civil Code of Ukraine — Book Six (inheritance), Articles 717–730 (gifts), Article 744 (lifetime maintenance), Article 1302 (inheritance contract).
• Family Code of Ukraine — Article 57.
• Tax Code of Ukraine — Articles 172, 174.
• Law of Ukraine on Notaries.

Read Also

• Property sale and purchase taxes
• Property valuation
• Documents for buying an apartment
• How to sell an apartment fast