Taxes on the sale of land in Ukraine
The sale of a land plot in Ukraine is a legal transaction between a seller and a buyer that involves tax obligations. It is advisable for the landowner to determine in advance what payments will need to be made to the government in 2026, as in some cases the tax burden can exceed 20% of the transaction value.
The amount of taxes depends on how many plots the seller sells during the year, how the land was acquired, how long it has been owned, and whether the plot size complies with legal requirements. Taxes are calculated based on the appraised value of the plot, so a land appraisal must be conducted before the transaction is finalized.
In this article, we will examine what taxes a seller of a land plot in Ukraine will have to pay in 2026, in which cases tax breaks apply, and what additional costs may arise during the transaction process.
What taxes does a land seller pay?
When selling land, three main payments typically arise: personal income tax (PIT), the military levy, and the state fee for notarizing the contract. The tax burden depends on the terms of the agreement and the appraised value of the plot. Before finalizing the agreement, a land appraisal must be conducted: based on data from the Unified Database of Appraisal Reports, an electronic certificate is generated that remains valid for 30 days.
Main taxes applicable to the sale of a land parcel:
Personal income tax (PIT) — 5% or 18%. The rate depends on the circumstances of the transaction. The 5% rate applies in most standard cases. The 18% rate applies if the property has been owned for less than 3 years and was purchased rather than inherited; if this is the third or subsequent sale of real estate within a year; or if the land is being sold by a non-resident.
Military tax — 5%. The military tax is payable only in conjunction with personal income tax. This tax applies regardless of the length of ownership of the property, provided the sale is subject to taxation.
State duty — 1%. When a purchase and sale agreement is notarized, a state duty of 1% of the land plot’s value is payable. Typically, the parties agree among themselves who will pay this fee—the seller, the buyer, or both parties equally. If the transaction is between close relatives (spouses, parents and children, grandparents, siblings, or grandchildren), no state duty is charged.
Depending on the terms of the agreement, the total tax burden for the seller can range from 0% to 24% of the land parcel’s value. To avoid unexpected expenses, you should verify the length of ownership, the number of transactions during the year, and whether the parcel’s area complies with established standards before selling.
In which cases is land sales tax not required?
Ukrainian tax law provides for situations in which a resident seller may be exempt from paying personal income tax and the military levy when selling a land plot. Taxes on the sale of land are not payable if all of the following conditions are met:
This is the first real estate sale of the year. If an individual sells a plot of land for the first time in a calendar year, the transaction may be exempt from taxation.
The land has been owned for a considerable period of time. In most cases, the property must have been owned for more than three years. For agricultural land acquired through free privatization, a longer period applies—at least 10 years of ownership.
The plot area does not exceed the limits for free transfer. The tax exemption applies only to plots whose area complies with the limits established by Article 121 of the Land Code of Ukraine. For example, up to 2 hectares—for personal farming; up to 0.12 hectares—for gardening; up to 0.25 hectares in villages, up to 0.15 hectares in towns, and up to 0.10 hectares in cities—for the construction and maintenance of a residential building; up to 0.10 hectares—for individual cottage construction; up to 0.01 hectares—for the construction of an individual garage.
If even one of the listed conditions is not met—for example, if this is the second sale of real estate within a year or if the lot size exceeds the standard—the seller will have to pay tax at the applicable rates.
Preferential terms also apply to inherited land. In such cases, the requirement regarding the length of ownership does not apply, but other terms of the agreement may affect the tax rate.
What are the additional costs involved in selling land?
In addition to taxes, the sale of a land plot involves other mandatory expenses related to the formalization of the transaction. Some of these expenses are paid by the seller, while others may be covered by the buyer—this is determined by mutual agreement between the parties.
These payments are required to complete the transaction:
Land appraisal. Before selling, you must determine the appraised value of the land in order to calculate taxes and state fees. If the owner disagrees with the automated appraisal, they may consult a certified appraiser. The expert’s report is typically valid for up to 6 months, but there is a separate fee for it.
Notary services. A contract for the sale of a land plot must be notarized. The cost of notary services is not fixed and depends on the notary, the complexity of the transaction, and the region.
Administrative fee for registering ownership. After the contract is signed, the notary registers the transfer of ownership in the State Register of Real Property Rights. An administrative fee is charged for this procedure. The minimum fee is approximately 300 UAH and may vary depending on the registration timeline.
Taxes, property appraisals, notary services, and transaction registration can significantly affect the final amount the seller receives. To accurately calculate the tax burden and avoid unnecessary expenses, it’s important to prepare for the transaction in advance. You can also consult the specialists at Mayak Real Estate Agency, who will advise you on the best time to close the deal to minimize the final tax liability.
