Taxes on the purchase and sale of real estate in Ukraine in 2025: what buyers and sellers should know

Buying or selling an apartment is not just a legal process but a serious financial step involving a number of expenses and tax obligations. In 2025, Ukrainian legislation on real estate remains stable, but some tax nuances can significantly affect the final transaction amount. In this article, we have gathered current information on taxes, fees, and commissions that both the seller and the buyer should be aware of.

Main taxes when buying an apartment

1. Pension Fund fee — 1%
The buyer must pay 1% of the contract price to the Pension Fund of Ukraine. Without this payment, the notary cannot register the ownership.
   -> Note: if this is your first home, you can apply for an exemption, but in practice most people still pay it and only recover the amount through court.

2. State duty — 1% of cadastral value
Paid solely by the buyer and calculated based on the cadastral value, not the market price. This amount goes to the budget during transaction registration.

3. Notary services — 1.5%–3% of the transaction amount
Includes preparation of the sale agreement, ownership verification, and updates to the State Register. Cost depends on the notary (private or public) and deal complexity. Sometimes the parties agree to split this cost equally.

Taxes when selling property

1. Personal Income Tax (PIT)

   - 5% — for Ukrainian residents.

   - 18% — for non-residents.

This tax is paid on the income received from the sale.

   -> Exception: if the property has been owned for more than 3 years and it is the first sale in a year — no PIT is charged.

2. Military levy — 1.5%
An additional tax for those paying PIT, also charged on the profit amount.

3. State duty — 1% of cadastral value
Unlike buyers, sellers also pay this fee. If you qualify for a benefit (combatants, disabled persons, etc.) — you may be exempt.

Mortgage: additional costs

If the apartment is purchased with a mortgage, the buyer should account for:

   - Property insurance (required by the bank);

   - Bank commission (up to 2% of loan amount);

   - Interim insurance or appraiser services (depending on bank requirements).

Payment deadlines

All tax obligations must be fulfilled within 14 days from the contract signing or mortgage application. For new buildings — the period starts from the first payment to the developer.

Understating contract price: risks

Some parties try to lower the declared price to reduce taxes. However, tax authorities actively monitor market prices.
   -> If the declared price differs by more than 33% from market value, taxes will be calculated on the market price.

Who may be exempt from taxes and fees?

According to the law, partial exemptions may apply to:

   - ATO/JFO veterans;

   - People with group I–II disabilities;

   - Orphans;

   - Large families (5+ children);

   - Chernobyl disaster victims;

   - Religious organizations;

   - Citizens buying their first home.

   !!! Important: most exemptions are not automatic. Documents and sometimes court action are required.

Luxury tax in 2025

Still applicable. If the apartment exceeds 60 m², tax is charged on the excess area.
If the area exceeds 300 m², an additional yearly fee of about 30,000 UAH applies.

Summary: who pays and how much

Buyer:

   - 1% to the Pension Fund (contract value);

   - 1% state duty (cadastral value);

   - 1.5–3% notary services;

   -

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