Inheritance and Gift Tax in Ukraine
Ukraine does not impose inheritance tax on direct heirs. Non-direct heirs and non-residents may be subject to tax at 5% or 18% + 1.5% military levy depending on their relationship to the deceased.
Inheritance Tax Rates
Ukraine applies different inheritance tax rates based on the relationship between the heir and the deceased:
| Heir Category | Rate |
|---|---|
| Direct heirs (spouse, children, parents) | 0% |
| Other heirs (siblings, grandchildren) | 5% |
| Non-resident heirs (any relationship) | 18% + 1.5% military levy |
Gift Tax
Gift tax follows the same rates as inheritance tax based on the relationship between donor and recipient. Gifts between direct family members are tax-free.
Property Registration on Inheritance
While inheritance tax may be 0% for direct heirs, the transfer of property through inheritance may trigger registration fees and notary costs:
- Registration fee: Nominal amount
- Notary fees: Percentage of property value (typically 0.5-1%)
- State duty: Small fixed amount
Capital Gains on Inherited Assets
When a beneficiary later sells an inherited asset, capital gains tax may apply. The cost basis is generally the market value at the time of inheritance. If held >3 years, the sale may be exempt.
International Considerations
For individuals with assets in multiple jurisdictions:
- Ukrainian residents inheriting foreign assets: Taxable in Ukraine
- Non-residents inheriting Ukrainian assets: Taxed at higher rates
- Tax treaties: Limited coverage for inheritance taxes