Inheritance by foreigners in Ukraine: what do you need to know?

The issue of inheritance by foreigners in Ukraine is becoming increasingly relevant, and each situation requires an understanding of the legal nuances. If you are abroad and your relative's property remains in Ukraine, this information will help you understand all aspects of the procedure.

What law applies to inheritance?

Usually, inheritance relations with a foreign element are governed by the law of the state where the testator had their last place of residence, unless the testator chose the law of their country of citizenship. For instance, if a German citizen lived and died in Ukraine in recent years, Ukrainian law will apply.

Inheritance of real estate in Ukraine is a special case. Inheritance of real estate by a foreigner is always governed by the law of the country in which it is located. Therefore, inheritance of property in Ukraine, even if the testator was a foreigner, will be governed by Ukrainian law. This means that even if your relative lived in Canada for twenty years and died there, his apartment in Lviv will still be inherited under Ukrainian law. At the same time, movable property in Canada will be subject to Canadian rules.

The same applies to property that is subject to state registration in Ukraine (e.g., cars, land plots) — it is governed by the law of the state where it is registered, regardless of where the testator lived and died.

What rights do foreigners have when inheriting in Ukraine?

Ukrainian legislation establishes a national regime for foreign citizens in the field of inheritance relations. This means that foreigners in Ukraine inherit on equal terms with citizens of the state. Thus, regardless of whether you have a Polish, German or Canadian passport, you have full rights to inherit both by will and by law.

How to inherit from abroad: step-by-step instructions

This is where the most important part begins. Many foreigners are unaware that Ukraine has a six-month deadline for accepting inheritance and miss it simply because they do not know about it. To avoid this, follow a clear algorithm.

Step 1: Forming the representative's powers

When a foreigner cannot physically come to Ukraine to inherit in Ukraine, the first task is to issue an authorization letter to a representative. This document should be as detailed as possible and cover a wide range of powers: from re-registering property rights to paying tax obligations and carrying out all necessary legal procedures.

Important: a power of attorney certified by a notary in another country undergoes a legalisation or apostille procedure depending on the country of issue. 

Step 2: Obtaining an identification code

Even if the heir has never had any ties to Ukraine before, obtaining an individual tax number is a mandatory requirement. This document is necessary for all further legal transactions on the territory of Ukraine. However, this can also be done through a representative.

Step 3: Applying to a notary and submitting an application

The six-month period for accepting an inheritance is the period during which the representative must apply to a notary with the relevant application. It is essential that the application is signed by the heir personally, not by the representative.

The notary will need a set of documents:

• Death certificate of the testator

• Your identification documents

• Will (if any)

• Documents confirming family ties (birth certificates, marriage certificates, etc.)

• Documents establishing ownership of the property

All foreign documents must be legalised or apostilled.

What to do if you missed the deadline for claiming your inheritance?

Heirs who have not submitted an application within the established period are considered to have renounced their inheritance. However, the law provides for the possibility of extending the deadline for claiming inheritance if there are valid reasons (departure, illness, other objective circumstances).

There are two ways to restore the deadline:

• either by reaching an agreement with other heirs (if any) who have already accepted the inheritance,

• or by applying to the court.

  
  

Inheritance of land plots by foreigners: what you need to know

Special attention should be paid to the issue of inheritance of land plots by foreigners. According to current legislation, foreign citizens and stateless persons cannot own agricultural land. If such a plot is included in the inheritance, the foreigner is obliged to transfer it to a Ukrainian citizen or Ukrainian legal entity within one year after acquiring ownership.

There are no restrictions on other categories of land, and the inheritance of property in the form of non-agricultural land plots takes place on general grounds.

Who does not pay inheritance tax?

The answer depends on two factors: degree of kinship and residency status.

A zero rate (0%) applies to:

• first-degree heirs (children, parents, husband/wife);

• second-degree heirs (brothers, sisters, grandparents, grandchildren).

A rate of 5% applies to other resident heirs.

The 18% rate applies to non-residents of Ukraine, regardless of the degree of kinship.

An additional military tax of 1.5% is payable (except in cases where the zero rate applies).

Important: even a close relative who is a non-resident will pay 18% of the estimated value of the property. It is the tax status that is decisive, not family ties.

Non-resident heirs are required to pay tax before the certificate of inheritance is notarised.

International treaties - your additional opportunity

It is worth remembering that inheritance proceedings involving foreign elements may be governed not only by national legislation, but also by international treaties between Ukraine and other countries. These agreements may establish special rules and exceptions.

Example: The Agreement on Legal Assistance between Ukraine and the Republic of Lithuania provides that when all movable property is located in the territory of one Contracting Party where the deceased did not reside, with the consent of all heirs, the proceedings may take place in the institutions of the country where the property is located.

Therefore, due to the existence of such special provisions in bilateral agreements, the qualified assistance of a lawyer familiar with Ukraine's international treaties can significantly simplify the procedure and reveal additional opportunities for the heirs.

Thus, inheritance by foreigners in Ukraine is a multi-stage process that requires careful preparation of documents, understanding of tax obligations and compliance with established deadlines.

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