Property-Related Taxes in Ukraine

Nonresident individuals are generally subject to Ukrainian taxation on Ukrainian-source income, including income derived from real estate located in Ukraine.

Rental Income Tax

Rental income earned by a nonresident individual from Ukrainian real estate is generally subject to 18% personal income tax.

In addition, the income is generally subject to Ukraine's 5% military tax. The military tax was increased from the previous 1.5% rate.

Consequently, the combined general tax burden on taxable rental income is approximately 23%.

For a nonresident individual, the tax is generally collected through the applicable Ukrainian withholding mechanism.

For a nonresident individual earning rental income from Ukrainian real estate, rental income is generally subject to 18% personal income tax plus a 5% military levy, resulting in a combined tax burden of 23% of taxable rental income.

Annual gross rental income of $18,000, $72,000 and $144,000 therefore results in estimated annual taxes of $4,140, $16,560 and $33,120, respectively.

This produces an effective income-tax rate of 23% of gross rental income at all three levels, leaving approximately $13,860, $55,440 and $110,880 after income tax, respectively.

For an ordinary individual landlord, rental-property maintenance expenses generally do not reduce the taxable rental-income base, so no standardized 30% expense deduction has been applied.

Capital Gains Tax

Income earned by a nonresident individual from the disposal of Ukrainian real estate is generally subject to 18% personal income tax, together with the applicable 5% military tax, where the disposal is taxable.

A qualifying first sale during a calendar year of certain residential real estate can be exempt from personal income tax where the property has been owned for more than three years. The three-year ownership requirement generally does not apply to qualifying inherited property.

The exemption applies only to qualifying categories of real estate and should not be assumed for commercial property.

Where the exemption does not apply, a nonresident is generally subject to the 18% personal income-tax rate. The applicable 5% military tax can increase the combined tax burden to approximately 23%.

For certain taxable real-estate disposals, documented acquisition costs and other qualifying costs can be taken into account in determining the taxable amount, subject to the specific Ukrainian rules.

Corporate Tax

The standard Ukrainian corporate income-tax rate is 18%.

Ukrainian resident companies are generally subject to corporate income tax on taxable profits, including rental income and taxable gains from real estate. Qualifying business expenses are generally deductible subject to Ukrainian tax rules.

Nonresident companies can be subject to Ukrainian corporate income tax on profits attributable to a Ukrainian permanent establishment and to withholding taxation on certain other Ukrainian-source income.

Certain sectors are subject to different corporate rates. In particular, financial institutions other than insurance companies are generally subject to a 25% rate, while special rules and higher rates apply to banks.

Property Buying Costs and Taxes in Ukraine

Property Tax

Ukraine imposes an annual real estate tax on residential and non-residential property, including property owned by nonresidents.

For individuals, residential property benefits from area-based allowances. Generally, tax applies only to the portion exceeding:

• 60 m² for apartments;

• 120 m² for residential houses; or

• 180 m² where an individual owns a combination of apartments and houses.

The applicable rate is determined by the relevant local authority according to the property's type and location.

Rather than being calculated as a percentage of the property's market value, the tax is generally established as an amount per square meter of taxable floor area. The rate cannot exceed 1.5% of the statutory minimum monthly salary per taxable square meter.

For the 2026 tax year, with a minimum monthly salary of UAH 8,647, the maximum statutory rate is approximately UAH 129.71 per taxable square meter.

An additional annual charge can apply to particularly large residential properties, including apartments exceeding 300 m² and houses exceeding 500 m², subject to the applicable rules.