Inheritance abroad: when Ukrainians need to pay taxes in Ukraine

Since the start of the full-scale war, more and more Ukrainians have been living abroad, opening bank accounts, buying real estate or receiving inheritances in other countries. At the same time, receiving property outside Ukraine does not always mean an automatic obligation to pay taxes in Ukraine.

We tell you what the taxation of foreign inheritance depends on and what rules apply to Ukrainians.

Who must pay taxes

Inheritance taxation issues are regulated by the Tax Code of Ukraine. The tax residency of the heir, as well as the degree of kinship with the testator, are of decisive importance.

If the heir is a tax resident of Ukraine, he must declare both income received in Ukraine and foreign income. For non-residents of Ukraine, only income from Ukrainian sources is taxed.

Supreme Court: Residence abroad does not exempt from inheritance registration

The Supreme Court, in its resolution of April 29, 2026 in case No. 161/2328/25, noted that residence outside Ukraine in itself does not prevent acceptance of the inheritance.

The heir may submit an application through a consular institution of Ukraine, send it by mail to a notary, and in some cases, even by electronic means of communication.

The Court expressed a similar legal position in case No. 188/1457/23, where the heir resided in Italy. The Court concluded that residence abroad is not a valid reason for missing the deadline for accepting the inheritance.

When the tax is 0% and when it is 5%

If a resident of Ukraine receives an inheritance from relatives of the first or second degree of kinship (parents, children, husband or wife, siblings, grandparents or grandchildren), a zero personal income tax rate applies.

If the inheritance comes from other persons, a 5% personal income tax rate applies. In addition, in cases provided for by law, military duty is also paid.

Different rules apply to non-residents

If the heir is a non-resident of Ukraine, any inheritance from a resident of Ukraine is taxed at the rate of:

18% personal income tax;

5% military duty.

Thus, the total tax burden can reach 23% of the value of the inherited property.

Do I need to pay tax twice?

Many countries have their own inheritance tax, so the heir may be faced with the need to pay taxes in two states at once.

Ukraine has international treaties on the avoidance of double taxation, but most of them do not directly regulate inheritance tax. That is why in each specific case it is necessary to analyze the legislation of the state where the inheritance was opened, as well as the provisions of international treaties and the Tax Code of Ukraine.

If the foreign tax meets the requirements of Ukrainian legislation, it can be credited in accordance with Article 13 of the Tax Code of Ukraine, provided that its payment is documented.

What documents may be required

Documents issued by foreign authorities may require:

apostille or consular legalization;

an official translation into Ukrainian.

This is especially true for documents regarding real estate, corporate rights, securities and other property that will be used before Ukrainian state authorities.

Therefore, the mere fact of receiving an inheritance abroad does not automatically mean the emergence of tax liabilities in Ukraine. The final decision depends on the tax status of the heir, the degree of kinship with the testator, the type of inherited property, the legislation of the country of opening the inheritance, and international treaties.