The real estate market in 2026 is going through difficult times. The war dictates its strict rules that dump or stagnate the price of an apartment or house. The difficulty lies in the fact that in order to sell profitably, sellers need to include in the price related costs such as advertising, preparation before the sale (cleaning, dry cleaning, etc.), as well as, for some categories, a tax that is charged to some sellers when selling real estate. It is important to note that it does not matter whether you sell an apartment or house for cash (although legally this has long been impossible) or by non-cash transfer, the state equally closely monitors each transaction, and the rules for controlling taxes paid have become even stricter.
The headache of many sellers selling real estate that they have owned for less than 3 years is taxes, namely, what will be their final amount to include in the sale price. This fear arises for many not for nothing, because the situation: when you sell an apartment for $50,000, but due to incorrect registration or haste in re-registration, you will be forced to pay the state up to 23% of the tax burden. This is more than $11,000 of your own money, which could be saved if you knew the legal ways to optimize the tax burden.
Basic rule: When taxes are 0% (no financial speculation)
The ideal option that sellers of an apartment or house would like to receive in 2026 is a complete exemption from paying Personal Income Tax (PIT) and military levy. To break even, your situation must meet two criteria at the same time:
- This is the first sale of real estate (an apartment, a residential building, a room or a land plot for housing) for the current calendar year.
- The object has been in your possession for more than 3 years.
An important exception is inheritance!
If you inherited real estate, the three-year rule does not apply . You can sell such an apartment or house even the next day after registration of ownership, and the tax rate will still be 0%.
Standard tax on second sale: 10% (5% personal income tax + 5% military levy)
If you do not fall under the preferential category described above because you have already sold real estate this year, or the real estate you are selling has been in your ownership for less than 3 years from the date of purchase, which is entered in the register, the state will have to pay one tenth of the assessed value of your property.
A tax of 10% (5% personal income tax + 5% military levy) on the valuation of real estate is applied in two cases , if:
- You are selling an object that you have owned for less than 3 years (and this is your first transaction this year, and the property is not an inheritance).
- The second sale of any property in a calendar year (even if you have owned both properties for 10 or 20 years).
That is, if in January you sold your grandmother’s dacha (1st sale, 0%), and in August you decided to sell your apartment with an estimated value of $100,000, you will have to pay $10,000 in tax for the apartment, that is, 10% of its value.
Tax for “investors” and commerce: 23% (18% personal income tax + 5% military levy)
This is the highest tax applied to investors who speculate in the real estate market and to commercial properties.
You will have to pay the maximum tax rate of 23% for:
- Third and all subsequent real estate sales within one calendar year.
- Sale of commercial real estate (offices, warehouses, shops, non-residential premises) regardless of whether it is the first sale or not.
- Non-resident deals (foreigners pay 18% + 5% even for the first sale).
An example for an individual when they will have to pay almost a quarter of the cost of real estate (23% tax): A real estate flipper (or as they are also called) purchased three “killed” apartments, made repairs and decided to sell them in one year to turn over the capital. The first apartment will go for 10% (because it has been owned for less than 3 years), the second – also for 10% because the second sale is in a year, but for the third you will have to pay 23% of its value.
Summary table of taxation scenarios
| Sales scenario | Personal income tax | Military recruitment | Total load |
| 1st sale (owned for over 3 years) or Inheritance | 0% | 0% | 0% |
| 1st sale (owned less than 3 years) | 5% | 5% | 10% |
| 2nd property sale of the year | 5% | 5% | 10% |
| 3rd and subsequent sales per year | 18% | 5% | 23% |
| Commercial real estate for sale | 18% | 5% | 23% |
| Sale of real estate by a non-resident | 18% | 5% | 23% |
Additional costs when processing transactions
In addition to taxes, you will have to pay additional mandatory payments. Usually, the parties agree on their distribution, but the seller must be prepared for them:
- State duty (1%): Paid from the contract amount, but not lower than the estimated value.
- Notary services: The price depends on the region and the specific specialist (usually from 5,000 to 15,000 UAH per transaction).
- Expert appraisal of property: Required to determine the tax base. Attention: understating the value of the apartment in the contract in order to pay less taxes will no longer work. The notary checks the price through the Unified Assessment Database (UDIBM). If the amount in the contract is lower than the modular assessment of the system, the deal will simply not be executed.
Legal ways to minimize taxes
If you see that you are facing high taxes, don’t rush. There are completely legal ways to save your money:
- Preliminary agreement (Deposit agreement). If there are a few months left before the cherished mark of “3 years of ownership”, do not lose the buyer. Enter into a notarized preliminary agreement, take a deposit, and schedule the main purchase and sale agreement for the day when the 3-year term officially ends. Your savings will be 10%.
- The correct order of sales. If you sell several properties in a year, always start with the most expensive one. For example, you sell a large house (for $100,000) and a small plot of land in the village (for $5,000). Make the house the first sale (if owned >3 years, the tax will be 0%). Then the plot will be the second sale (10% of $5,000 = $500). If you do the opposite, you will pay 10% for the house, losing $10,000.
Conclusions
Real estate taxes are not an area where you can rely on luck or advice from neighbors. Proper planning of the timing of the sale, understanding your benefits, and the order of transactions can save you tens of thousands of dollars.
Always consult with trusted lawyers or notaries before you put the property up for sale. And to always be up to date with the latest changes in legislation and real estate market analytics, read current materials on the portal ukraineinfo.com.ua . Be armed with knowledge and sell profitably!
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