Taxes on the sale and purchase of real estate in Ukraine in 2026

Since December 1, 2024, taxation of real estate transactions in Ukraine has become more noticeable for market participants. This was caused by changes in the Tax Code: an increase in the military tax from 1.5% to 5% directly affected the total amount of expenses when selling housing. Transactions are now significantly more expensive than in previous years.

The amount of taxes payable when buying or selling real estate depends not only on the price of the property, but also on the specific terms of the transaction. The length of ownership of the apartment or house and the number of sales during the calendar year play a key role. These factors determine whether the seller will be exempt from taxation or required to pay personal income tax and military tax at the full rate.

In this article, we will examine what taxes the seller pays, what expenses are borne by the buyer, and what to pay attention to when planning a real estate transaction in Ukraine in 2026.

What determines the tax on the sale of real estate?

The amount of taxes on the sale of real estate cannot be fixed, as it is determined based on the terms of the specific transaction and may vary significantly even for properties of the same value. The following factors affect the amount of taxes:

• First or repeat sale within a year. If the property is being sold for the first time in a calendar year, the seller may be eligible for tax breaks. The second and each subsequent sale in the same year are taxed at the full rate regardless of the length of ownership.

• Term of ownership of real estate. For the first sale, the key point is the term of ownership of the property. If owned for more than 3 years, the income from the sale may not be taxed. If the property has been owned for less than 3 years, personal income tax and military tax apply.

• Confirmation of the initial cost. The availability of documents confirming the purchase price of the property allows you to pay tax only on the difference between the purchase and sale prices. In the absence of such documents, tax is levied on the entire amount specified in the purchase agreement.

• The origin of the property—inheritance, gift, or purchase. The sale of inherited property is exempt from taxation regardless of the length of ownership. Properties received as gifts are taxed according to general rules and are not considered inheritance.

• Type of property — residential or commercial. Residential properties are subject to preferential terms on the first sale. Commercial properties are always subject to taxation regardless of the length of ownership and number of transactions.

Knowing how taxes are calculated when selling real estate helps you plan your expenses before the transaction is finalized and avoid unexpected financial losses..

What taxes does a real estate seller pay?

The main tax burden when selling real estate in 2026 falls on the seller and includes two mandatory payments: personal income tax (PIT) and military tax. Their amount directly depends on which sale it is during the year and how long the property has been owned.

First sale of real estate during the year:

• more than 3 years of ownership — personal income tax 0%, military tax 0%;

• up to 3 years of ownership — 5% personal income tax + 5% military tax.

Second and subsequent sales during the year:

• 18% personal income tax + 5% military tax, regardless of the length of ownership of the property.

Military tax is payable only in cases where personal income tax is charged. If the sale is exempt from income tax, military tax is also not charged.

As mentioned above, if there are documents confirming the initial purchase price of the property, the tax is calculated not on the entire sale amount, but only on the difference between the purchase price and the sale price. If such documents are not available, the tax is calculated on the entire amount specified in the purchase agreement or appraisal.

Let's consider an example: an apartment was purchased for UAH 2,000,000 and sold for UAH 2,500,000. If the initial cost is confirmed, the tax base is UAH 500,000. For the second sale in the year, the amount of tax will be 18% personal income tax + 5% military tax = 23% of UAH 500,000, or UAH 115,000. If there are no supporting documents, the tax is calculated on the entire sale amount — UAH 2,500,000. As a result, the tax amount will be UAH 575,000.

It should be noted that sellers are exempt from taxes when selling real estate inherited from first-degree relatives. The law also provides for certain benefits for some categories of citizens, but these apply in limited cases and require documentary evidence. These include persons with Group 1 disabilities, combat veterans, and internally displaced persons who have received compensation for destroyed housing.

If a seller decides to conclude a contract at an undervalued price, they must understand that they bear tax risks. If the tax authorities recognize that the sale price is below market value, they may impose additional taxes.

What taxes does a real estate buyer pay?

When purchasing real estate in 2026, the tax burden on the buyer is significantly lower than on the seller, but it will not be possible to avoid mandatory payments entirely. The main tax is a mandatory state pension insurance contribution of 1% of the property value. This payment is mandatory for most transactions on the secondary market: the buyer pays it before the purchase agreement is notarized.

When drawing up the contract, a state duty of 1% of the value of the property is also payable. Formally, the seller is liable for this duty under the law, but in practice the parties often agree to redistribute the costs, for example, the buyer may take on part of the payments or compensate for them in the total amount of the transaction.

Additional costs when buying or selling real estate

In addition to taxes and mandatory fees, when formalizing a real estate purchase and sale transaction, it is worth considering the associated costs, as they directly affect the overall budget of the transaction:

• notary services — the amount of expenses depends on the value of the property and the terms of the transaction and averages 0.5–1%;

• real estate appraisal — the cost of the appraisal depends on the type and location of the property;

• registration fees — include the costs of making changes to the State Register of Rights to Real Estate and registering ownership rights to the new owner;

• Realtor commission — when a real estate agency is involved, a certain percentage of the property value (usually 3–5%) is paid by the buyer, the seller, or divided between the parties by agreement.

Before concluding a transaction, it is worth clarifying the fees charged by the notary and appraiser and immediately including these costs in your budget. This will help you avoid a situation where the transaction is postponed due to a lack of funds for processing.

Before selling real estate, it is best to consult with a real estate specialist to determine exactly whether you need to pay taxes and how much, and whether there are any exemptions in your particular case. The realtors at Mayak Real Estate Agency are familiar with all the intricacies of taxation when selling and buying real estate in Ukraine, so they can answer all your questions and help you close the deal without risk and with maximum profit.