Expert valuation required for gifted or inherited land in Ukraine
Ukraine’s tax authority says an expert monetary valuation must be used to establish the taxable value of land received as a gift or inheritance. The tax rate depends on the recipient’s relationship to the previous owner.
Land transferred through a gift or inheritance is valued for personal income tax purposes using an expert assessment of its market value. A standard regulatory valuation cannot be substituted when calculating the taxable amount.
The State Tax Service of Ukraine reported this on Tuesday, November 10. It distinguished expert valuation from regulatory valuation, which is commonly used to calculate land tax, rent for state or municipal land and certain state duties.
Recipients who acquire a plot from first- or second-degree relatives owe no tax. The exemption covers transfers involving parents, spouses, children, siblings, grandparents and grandchildren.
A 5% tax applies when land is received from more distant relatives, friends or other people. In such cases, an official expert conclusion on the plot’s market value is needed to establish the tax base.