Signing a gift agreement is one of the most common ways to transfer property ownership. But not every gift is truly free — the state imposes taxes.
Why do you have to pay?
Any transfer of property without payment is considered income. Starting January 2025, the following tax rates apply:
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Military levy — 5% (previously 1.5%)
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Personal income tax (PIT) — 5–18%, depending on the situation
Gifting to close relatives
No personal income tax is applied when gifting to close family members. This includes transfers between:
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Parents and children
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Spouses
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Siblings
Gifting to other individuals
If the recipient is not a close relative, the tax burden is 10% (5% PIT + 5% military levy). For example, if the apartment is worth 1 million UAH, the taxes will amount to 100,000 UAH.
Gifting to non-residents
Taxes are even higher — 23% (18% PIT + 5% military levy). This applies to:
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Foreign nationals
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Stateless persons
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Ukrainians who permanently reside abroad
Gifting property is a legal transaction with financial consequences. Before signing a gift agreement, make sure to:
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Verify the recipient’s status
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Assess the property’s value
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Calculate the applicable taxes
Even the most heartfelt gift may come with a price tag.
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