Taxes When Buying and Selling Property in Ukraine in 2026
Volodymyr SydorenkoJanuary 22, 2026
Who pays what in a Ukrainian property deal: personal income tax, military levy, state duty and the pension fund levy. Exemptions, the tax base, worked examples and common mistakes.
Taxes When Buying and Selling Property in Ukraine in 2026
In a property deal both parties pay taxes and fees, and the total can reach several percent of the apartment's value. The good news: in many cases the seller is exempt from income tax and the buyer from some fees. This article covers all payments, exemptions, the rules for the tax base and worked examples.
The main rules are in the Tax Code of Ukraine (Article 172 — taxation of property sales), the Decree on State Duty and the Law on the Mandatory State Pension Insurance Levy.
The Big Picture: Who Pays What
Seller:
- personal income tax (PIT) — 0% or 5%;
- military levy — if the sale is subject to PIT;
- state duty — 1% (by agreement it can be paid by the buyer).
Buyer:
- the mandatory state pension insurance levy — 1%, unless an exemption applies.
Notary, appraiser, technical inventory and, if used, agent fees are paid separately — they aren't taxes but should be included in the deal budget.
Seller's Taxes
When a Sale Is Tax-Free
Under paragraph 172.1 of the Tax Code, income from a sale is exempt from PIT and military levy if all of the following apply:
- A residential house, apartment, room, garden or country house (together with the land plot beneath it), or a land plot within the free privatization limits, is sold.
- It is the first such sale within the calendar year.
- The property has been owned by the seller for more than three years.
The three-year requirement does not apply to inherited property. So an apartment inherited recently can be sold without PIT if it's the first sale of the year. More in inheritance and gifting of real estate.
When a Sale Is Taxable
If at least one condition isn't met — for example, the apartment has been owned for less than three years, or it's the second sale in a year — the income is taxed at:
- 5% personal income tax (paragraph 172.2);
- military levy. From 1 December 2024 the military levy rate for individuals was raised to 5% by Law No. 4015-IX.
Together that's 10% of the tax base — a significant amount to factor in when planning a sale. Sometimes it makes sense to wait until three years have passed or to spread the sale of two properties over different calendar years.
For non-residential property (commercial premises, garages, parking spaces) and sales beyond the first in a year, rates and conditions may differ — check with a notary or tax adviser.
Tax Base
The tax is calculated on the higher of two amounts: the contract price or the appraised value of the property (paragraph 172.3). The appraised value is determined by a licensed appraiser, and the report is registered in the Unified Database of Valuation Reports of the State Property Fund. So understating the price in the contract won't reduce the tax if the valuation is higher. How valuation works is explained in property valuation.
State Duty
The state duty for certifying a property alienation agreement is 1% of the contract amount (but not less than the appraised value). It's traditionally paid by the seller, but the parties can agree otherwise. Duty isn't charged in some cases defined by the decree.
How and When to Pay
The seller pays PIT and military levy before the agreement is notarized. The notary checks the receipts and won't certify the deal without them. Usually no separate annual tax return is needed for this income if the tax was paid via the notary.
Buyer's Taxes and Fees
Pension Fund Levy
The buyer pays 1% of the property value stated in the agreement (but not less than the appraised value). The law provides exemptions — in particular for citizens buying housing for the first time and for certain categories of persons and transactions. Eligibility for an exemption (for example, owning no other housing) is usually confirmed at the notary during the deal.
Does the Buyer Pay Income Tax?
No. A purchase isn't income, so the buyer pays no income tax. But the buyer must have documents on the source of funds to pass the financial monitoring required by Law No. 361-IX.
Property Tax After the Purchase
Once you're the owner, you may owe property tax if the area exceeds the exemption: 60 m² for apartments and 120 m² for houses. More in property tax in Ukraine.
Worked Examples
Example 1. A Tax-Free Sale
Olena sells an apartment she's owned for six years. It's her first sale in 2026. The price is UAH 2,400,000; the appraised value is UAH 2,200,000.
- PIT and military levy — UAH 0.
- State duty — 1% × 2,400,000 = UAH 24,000 (if Olena pays).
- The buyer pays the pension fund levy of UAH 24,000 unless exempt.
Example 2. Owned for Less Than Three Years
Andriy bought a new-build apartment two years ago and sells it for UAH 3,000,000. The appraised value is UAH 3,100,000, so the tax base is UAH 3,100,000.
- PIT — 5% × 3,100,000 = UAH 155,000.
- Military levy — 5% × 3,100,000 = UAH 155,000.
- State duty — 1% × 3,100,000 = UAH 31,000.
Total — UAH 341,000. Had Andriy waited another year, he'd have saved UAH 310,000.
Example 3. Two Sales in One Year
Iryna sells two apartments, each owned for more than three years. The first sale is PIT-free; the second is subject to 5% PIT and military levy. If possible, the second sale should be moved to the next year.
The Deal Budget: What Else to Plan For
Taxes aren't the only cost, so draw up a full budget in advance. For the seller:
- valuation — from a few thousand hryvnias depending on the city and property;
- a technical passport, if the old one is outdated or doesn't match the layout;
- certificates from the condominium association and utility suppliers;
- an agent's commission, if you work with an agency (most often 2–5% of the price or a fixed fee). See how to choose a real estate agent.
For the buyer:
- notary fees for certifying the agreement and registering ownership;
- a legal check of the apartment;
- bank fees — for transfers, renting a safe deposit box or opening a letter of credit;
- mortgage costs — valuation for the bank, insurance and notarizing the mortgage agreement;
- transferring utility accounts and the first utility payments.
Altogether these can add another 1–3% of the apartment's value, so keep a reserve.
Buying with eOselia or a Mortgage
The tax rules for a deal with a loan are the same. You add costs for the bank's valuation, insurance and notarizing the mortgage agreement. More in eOselia: how to get an affordable mortgage and getting a mortgage in Ukraine.
Non-Residents and Sales by Power of Attorney
If the seller lives abroad and isn't a Ukrainian tax resident, the tax rules may differ, and international double tax treaties apply. If the deal is concluded by a representative under a power of attorney, taxes are still paid on behalf of the owner-seller. In such cases, consult the notary in advance.
Common Mistakes
- Calculating tax on the contract price instead of the valuation. If the valuation is higher, you'll pay more.
- Miscounting the ownership period. The three-year period runs from the date of state registration of ownership — for new builds, from registration of the apartment, not from the date of the contract with the developer.
- A second sale in a year without accounting for tax.
- Understating the price "to save". The tax is still calculated on the appraised value, and the buyer is at risk because if the deal is reversed they can only recover the contract amount.
- Confusion about the military levy. The rate has changed, so check the current one on the date of the deal on the State Tax Service website.
How to Legally Reduce Taxes
- Wait until the three-year ownership period has passed, if the sale isn't urgent.
- Spread sales over different years.
- Sell shares if the property is jointly owned. Each co-owner has their own right to one exempt sale per year, if the requirements are met.
- Check the buyer's eligibility for the pension levy exemption.
- Order a fair valuation — an inflated valuation increases the tax base.
Frequently Asked Questions
Do I pay tax if I sell for less than I paid? Yes, if the sale is taxable. The Tax Code doesn't consider the purchase price: the base is the sale price or the appraised value.
Is an apartment swap taxed? For tax purposes, an exchange is treated as two sales, so the Article 172 rules apply to each party.
Can I pay the tax after the deal? No, the seller's PIT and military levy are paid before the agreement is certified.
Who pays taxes if an agent sells the apartment under a power of attorney? The taxpayer is the owner, not the representative.
Do foreigners pay different taxes when buying? The buyer's obligations (the pension fund levy, if applicable, and notary fees) are generally the same. For foreign sellers, residency matters: non-residents may be taxed differently, and a double tax treaty between Ukraine and their country of residence can affect the final liability.
Is a gift between relatives cheaper than a sale? A gift between first-degree relatives isn't subject to income tax, but disguising a sale as a gift is a sham transaction that can be invalidated — and the "buyer" risks losing both the money and the apartment.
Is selling property rights to a new-build apartment taxed? Yes. An assignment of property rights doesn't qualify for the home-sale exemption because the apartment isn't yet real estate. The income is taxed as investment profit, i.e. on the difference between the sale price and acquisition costs. Check the calculation with a tax adviser.
Conclusion
The key is to check in advance whether the sale qualifies for the exemption (first in the year and owned for over three years) and to calculate taxes on the higher of the contract price and the valuation. The buyer should check eligibility for the pension levy exemption and prepare documents on the source of funds. For a smooth deal, use our checklists for checking the apartment and documents for buying.
Sources
- Tax Code of Ukraine — Articles 172, 266.
- Law No. 4015-IX amending the Tax Code (military levy).
- Cabinet of Ministers Decree on State Duty.
- Law on the Mandatory State Pension Insurance Levy.
- State Tax Service of Ukraine.
- State Property Fund of Ukraine.