Double inheritance tax: does it threaten Ukrainians who received property abroad

Since the start of the full-scale war, more and more Ukrainians live abroad, acquire property, open accounts, and also inherit real estate, funds, or other assets in foreign countries.

That is why the issue of taxation of foreign inheritance has become one of the most practical in the field of international private law and tax legislation. At the same time, the answer depends not only on the place where the inheritance was opened, but primarily on the tax status of the heir, the type of inherited property, and Ukraine’s international treaties.

Which norms regulate inheritance taxation

The main regulatory act governing inheritance taxation is the Tax Code of Ukraine. In particular, Article 174 defines the procedure for taxing income in the form of inheritance, and Article 163 establishes which incomes are subject to taxation depending on the tax status of an individual.

The key issue is tax residency. If the heir is a tax resident of Ukraine, the object of taxation for them includes both income from sources originating in Ukraine and foreign income. In contrast, for non-residents of Ukraine, only income from sources originating in Ukraine is taxed.

If the inheritance is formalized abroad

The Supreme Court in its ruling dated April 29, 2026, in case No. 161/2328/25 noted that the heir’s residence outside Ukraine does not in itself deprive them of the opportunity to accept the inheritance. For this, one can contact the Ukrainian consular institution or send an application to a notary by mail, and in some cases—even by electronic message.

The Court reached a similar conclusion in case No. 188/1457/23, where the heir lived in Italy. The Supreme Court stated that being in Italy is not an objective and insurmountable obstacle to submitting an application to accept the inheritance, since they could have applied through the Ukrainian consular institution.

Thus, residing abroad does not exempt a person from complying with the legally established procedures for formalizing inheritance rights.

When foreign inheritance is taxed in Ukraine

Receiving an inheritance abroad does not always mean the need to pay tax in Ukraine. Tax consequences are determined by the special provisions of Article 174 of the Tax Code.

If the inheritance object is received by a Ukrainian resident from a family member of the first or second degree of kinship to the deceased, a zero personal income tax rate applies. Such persons include, in particular, parents, husband or wife, children, full brothers and sisters, grandparents, grandchildren.

If the inheritance is received from other persons, the general rule is the application of a 5% personal income tax rate. In addition, in cases where the income is subject to personal income tax and not exempt from military tax, a military tax is also paid.

Separate rules apply if the heir is a non-resident of Ukraine. In this case, even if the deceased was a resident of Ukraine, any inheritance object is taxed at a rate of 18% personal income tax and 5% military tax. The obligation to pay these taxes lies directly with the non-resident heir.

As previously written by the "Judicial and Legal Newspaper", inheritance from parents can cost the heir 23% of its value. This is possible if at least one party to the inheritance is recognized as a non-resident of Ukraine: in this case, instead of a zero rate, 18% personal income tax and 5% military tax apply. Therefore, confirming the tax residency of the deceased becomes crucial, especially if they lived abroad for a long time.

Does double taxation arise

A feature of international inheritance is that tax is often also paid in the country where the inheritance was opened. Many countries levy inheritance tax or other mandatory payments upon the transfer of property to heirs. In such a situation, the issue of double taxation arises.

Ukraine has concluded a significant number of international treaties on the avoidance of double taxation. At the same time, most of these conventions regulate the taxation of income and property but do not contain separate rules regarding inheritance tax. This is explained by the fact that in many countries inheritance tax has a separate legal nature and is not covered by classic double taxation avoidance conventions.

Therefore, in each specific case, it is necessary to analyze the legislation of the relevant country, the provisions of the international treaty, and the norms of the Tax Code of Ukraine.

If the foreign tax by its nature falls under the mechanism of eliminating double taxation, the issue of its crediting is resolved according to Article 13 of the Tax Code of Ukraine, provided there is proper documentary confirmation of the fact of payment of such tax abroad.

What documents may the heir need

The practical significance lies in confirming the value of the inherited property. If a person receives real estate, corporate rights, securities, or other property abroad, documents issued by competent authorities of the foreign state may require legalization or apostille depending on international treaties between states.

In addition, such documents often require an official translation into Ukrainian for their use before tax authorities or other state bodies of Ukraine.

Additionally, read about Ukrainian notarial documents abroad: when an apostille is needed and when consular legalization is required.

Thus, the mere fact of receiving an inheritance abroad does not automatically create a tax obligation in Ukraine. The decisive factors are the tax residency of the heir, the degree of kinship with the deceased, the type of inherited property, the legislation of the country where the inheritance was opened, and the provisions of international treaties.

Also read — inheritance abroad according to Ukrainian legislation: what you need to know.

Subscribe to our Telegram channel t.me/sudua and to Google News SUD.UA, as well as to our VIBER and WhatsApp, page on Facebook and on Instagram to stay informed about the most important events.