The Law Has Allowed - Who Can Avoid Paying Taxes When Selling Property.

The sale of real estate always raises questions about taxes. Do you need to pay percentages to the state from the received amount? In 2025, there are clear conditions under which the seller can avoid taxation.

The editorial team of Novyny.LIVE explains when taxes are not levied, how the exemption works in inheritance cases, and what nuances to consider to avoid the tax trap.

Conditions Under Which There Are No Taxes at All

In 2025, the sale of real estate can be exempt from taxes if certain conditions defined by the (TCU) are met. These rules allow you to avoid paying personal income tax (PIT) and military tax (MT), which together can amount to up to 10% of the transaction value.

To ensure the income from the sale of real estate is not taxed, three key conditions must be met:

1. The property must have been owned by the seller for more than three years. This period is counted from the date of registration of the ownership right in the State Register of Real Rights (SRRR). An exception applies to property received by inheritance, where the three-year requirement does not apply.
2. The first sale of real estate within the calendar year. Even if you are selling different properties (for example, an apartment and a garage), the second sale within the year will be taxable.
3. The property must not be used in entrepreneurial activities. For instance, for rental purposes for commercial gains.

If all these conditions are met, the PIT rate is 0%, and the military tax is also not levied, since according to p. 172.10 TCU, objects exempted from PIT are automatically not subject to MT. For example, if you have owned an apartment for four years and sell it for the first Time in the year, no taxes are paid, regardless of the transaction amount.

When Taxes Are Paid – Even Partially

If at least one of the exemption conditions is not met - a tax obligation arises automatically:

• PIT - 5%;
• military tax - 5%.

The total rate is 10% of the appraisal or contractual value (the higher of the two is taken).

This may be the case if:

• you have already sold a second apartment within the year;
• the property has been owned for less than 3 years (except for inheritance);
• the apartment was used for business purposes (for example, officially rented out through a sole proprietorship).

Inheritance – A Separate Story

Inheritance adds its own peculiarities to the taxation rules.

Inheritance from Close Relatives

The sale of property received by inheritance from parents, children, or spouses is exempt from taxation:

• PIT = 0% when receiving the inheritance (p. 174.2.1 TCU);
• PIT = 0% and MT = 0% upon sale (if this is the first sale in the year).

The three-year ownership period does not apply to inherited property. This means an apartment can be sold right after the inheritance is finalized - and no taxes need to be paid.

Inheritance from Other Relatives or Strangers

If the inheritance was received from second-degree relatives (brothers, sisters, grandparents) or from strangers, the situation is different, experts from the Brovar Just law firm emphasize. When receiving such an inheritance, a PIT of 5% and military tax of 5% are paid.

However, when subsequently selling this property, no taxes are levied if it is the first sale in the year. If it’s the second or subsequent sale in the year, a 10% total tax is paid.

For example, if you inherited an apartment from your sister, paid 10% taxes upon inheritance registration, and then sold it within the first sale of the year. In this case, both PIT and MT upon sale will be zero.

Legal Proofs: What You Need to Have

To confirm the right to exemption, the following documents are needed:

• property acquisition agreement (purchase, inheritance, etc.);
• extract from the State Register of Real Rights.

These documents confirm the date of property acquisition, without which it cannot be determined - whether three years have passed or not.

Other Important Points

1. If the inheritance is from several individuals of different degrees of kinship, taxes are calculated for the entire object as one, without division.
2. The price in the contract is not crucial. If the stated amount is zero, but the seller has the right to exemption - tax is not levied.
3. Exemptions do not depend on the price. Even an expensive apartment can be sold without taxes - if the conditions are met.

What Ukrainians Should Know

Purchasing real estate in 2025 goes beyond just the square meter costs, as additional mandatory payments significantly affect the final transaction amount. Regardless of who buys property - an individual, a company, or a foreigner - it is essential to consider new tax norms, state duties, and notarization costs, which are mandatory for all.

We also reported that renting out property is not a voluntary choice regarding tax payments, but an obligation to the state. In 2025, fiscal rules are tightening, and control over shadow rental is getting stricter, so be prepared to report your income from rental activities.