Gifting an apartment - how much tax will the deal 'eat up' in 2025.

Transferring an apartment as a gift is when there is no holiday, yet you receive real estate. This trick is quite popular in Ukraine, but it is essential to keep in mind that even a free deal has its tax pitfalls. Depending on how close you are related and whether you are residents, in 2025 it may cost you some tax pennies.

Gifting an apartment between close relatives in 2025 is exempt from many taxes if you are both residents of Ukraine

Close relatives include parents, children, husband or wife, brothers, sisters, grandparents, and grandchildren. These individuals are exempt from income tax, military fees, and contributions to the Pension Fund. You will only have to pay the notary for their services.

State duty when gifting

According to the government decree, when gifting between relatives, you do not pay state duty because it is a gratuitous transaction. This way, you save 1% in expenses. It should be remembered that private notaries are not entitled to demand state duty, and any additional payments are for their services, not an official tax.

Gifting to non-residents

If one party to the transaction is not a resident of Ukraine, many questions arise. The tax service may require 23% in taxes. To avoid such problems, it is better to consider a purchase-sale option and be prepared for possible tax requirements within three years.

Purchase through gifting

Gifting is for those who want to save on taxes and avoid the property appraisal required when buying and selling. So if you have a close relative, they are a resident, and you do not want to hassle with property valuation, transferring an apartment as a gift can be a great option for you.

Ukrainian laws allow for the transfer of apartments as gifts, but it is essential to remember the tax implications. For residents of the country, transferring property to close relatives can be beneficial and exempt from many taxes. However, if one of the parties is not a resident or the transfer of property is not entirely free, there may be tax complications. Therefore, it is worth carefully studying all aspects of such a deal before entering into it.