If the one inherited real estate from relatives who are not of the first or second degree of kinship, such income is taxed on a general basis. Such relatives particularly include a stepfather or stepmother, uncle or aunt, great-grandfather or great-grandmother, cousins, etc.

What taxes have to be paid?

For individuals – residents of Ukraine, the following rates are established:

- personal income tax – 5%

- military levy – 5%

That is, 10% of the estimated value of the heritage object.

Who pays the tax?

Payer is a person who receives inheritance. Obligation to pay arises from the moment of acquiring ownership of the real estate.

How to pay the tax?

There are two options: 

1. To the notarization of heritage objects

In such case:

- property status and income declaration is not submitted;

- notary submits information to the State Tax Service about received income and paid tax.

2. After the inheritance registration

If the tax was not paid during the notarial registration, the payer is obliged to:

- submit annual tax declaration by May 1 of year following the reporting year;

- independently determine amount of tax liabilities;

- pay declared tax liabilities by August 1.

Declaration can be submitted through the Taxpayer's Electronic cabinet or in person to the tax authority.

For example:

If the estimated cost of apartment is 1 800.000 UAH, the tax amount will be:

- Personal income tax – 90 000 UAH,

- military levy – 90 000 UAH.

Total payable amount – 180 000 UAH.

In case of failure to submit declaration or untimely payment of tax, penalties are applied to the payer and penalty is charged.