Guide to Property Taxes in Ukraine
Tax Rate on Rental Income |
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| Monthly Income | €1,500 | €6,000 | €12,000 |
| Tax Rate | 19.5% | 19.5% | 19.5% |
Nonresidents are taxed on their income from Ukrainian sources.
Rental Income Tax
Nonresidents are generally taxed at 18% on all their income from Ukraine, withheld at source. An additional 1.5% military tax is also charged on the same tax base.
Capital Gains
Capital gains realized by nonresidents from selling real estate property are generally taxed at 18%. The taxable gain is computed as selling price less the acquisition cost of the property. No capital gains tax is applied in the case where the sale of the property is the first of the year for the owner and they have owned the property for over 3 years.
Property Tax
Residential property owners are liable to pay for property tax if the size of their property exceeds certain thresholds (e.g 60 square meters for apartments or 120 square meters for single residential dwellings) and the tax base is tied to the minimum salary in Ukraine. One can expect to pay up to around 0.1-0.2% in property tax.
Corporate Tax
Income and capital gains earned by corporations are taxed at the standard corporate tax rate of 18%. All expenses incurred in respect of business activities are deductible for corporate tax purposes.
Property Buying Costs and Taxes in Ukraine
Transaction Costs |
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| Who Pays? | ||
| State duty (1% Pension Fund Fee and 1% State Duty) | 2% | buyer |
| Notary fee | 0.1% | buyer |
| Legal fee | 1% - 2% | buyer |
| Real Estate Agent Fee | 3% - 5% | seller |
| Costs paid by buyer | 3.1% - 4.1% | |
| Costs paid by seller | 3% - 5% | |
| ROUNDTRIP TRANSACTION COSTS | 6.1% - 9.1% | |