Inheritance or gift from resident to non-resident – Tax Service explains rules for taxation and reporting

The Tax Service has clarified the rules for taxing and registering an inheritance or gift from a resident to a non-resident.

This is stated in a press release from the Tax Service, as reported by the Ukrainian News agency.

A gift in the form of property received by a non-resident from a resident of Ukraine is subject to taxation under the same rules as an inheritance (para. 174.6 of Art. 174 of the Tax Code of Ukraine).

Key rules for non-residents:

- Rates. If the heir is a non-resident and the decedent is a resident of Ukraine, any item of inheritance or gift is subject to personal income tax at a rate of 18% and a military levy at a rate of 5%.

- Who pays. The obligation to pay the tax and levy rests entirely with the non-resident heir.

- Payment deadlines. A non-resident heir must pay the tax and military levy before the property is notarized; in rural areas, payment must be made before the documents are processed by an authorized representative of the local government.

- Important! Without proof of full payment, the notary (or an official of the village council) will not issue a certificate of inheritance or a gift agreement.

The tax and military levy are paid at the location where the inheritance or gift agreement is notarized.

To pay the tax, use budget classification code 11010501—“Personal income tax paid by individuals not subject to mandatory filing.”

To pay the military levy, use budget classification code 11011000 – “Military Levy.”

As the Ukrainian News agency earlier reported, changes regarding the allocation of military levy revenues took effect on July 1, 2026.

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