Inheritance Taxation in Ukraine for 2026
In 2026, the taxation of inherited assets in Ukraine is governed by the rules for Personal Income Tax (PIT) and a military levy, rather than a distinct inheritance tax. The applicable rates depend entirely on the heir's familial relationship to the deceased and their tax residency status.
According to attorney Svitlana Krutorohova of the Winner law firm, heirs classified as first or second-degree relatives are fully exempt from both the PIT and the military levy. This category includes:
- Children,
- Parents,
- Spouses,
- Siblings,
- Grandparents.
This exemption provides significant financial relief for immediate family members, a common feature in many European tax systems.
Tax Rates for Distant Relatives and Non-Residents
For more distant relatives, such as aunts, uncles, nephews, nieces, and cousins, a 5% PIT rate plus a 5% military levy applies. In contrast, non-residents of Ukraine, regardless of their family ties, are generally subject to an 18% PIT rate and the 5% military levy, with very few exceptions. It is important to note that pensioners do not receive any special tax breaks unless they fall into the close relative category.
The terms of the deceased's will do not alter these tax rates. The valuation of the inherited property and the subsequent tax calculation are performed by a notary. The state fee for this notarial service is approximately 600 Ukrainian hryvnias. These new rules for 2026 create varied financial obligations for different categories of heirs, which can significantly impact the net value of an inheritance.
The upcoming changes to Ukraine's inheritance taxation in 2026 could substantially affect the finances of families receiving an estate. The full exemption for close relatives may encourage the transfer of wealth within the immediate family, while the higher rates for distant relatives and non-residents highlight a differentiated approach. These rules are also likely to influence how Ukrainians approach estate planning and the drafting of wills in the coming years.