Following the enactment of Law No. 4215-IX (dated 15 October 2026, effective 30 October 2026), the Family Code and Tax Code amendments introduce a new regime for division of marital property upon divorce or settlement agreement. The legislation creates a “tax-neutral transfer” mechanism: transfers of immovable property (apartments, houses, land plots) between spouses under a notarized property division agreement are exempt from both Personal Income Tax (ПДФО) and the 1% Pension Fund levy, provided the property was acquired during marriage and division occurs within 3 years of divorce registration. Previously, such transfers triggered ПДФО on the deemed gain (market value minus acquisition cost) and mandatory military tax. The law also introduces a mandatory notarized valuation report (Form № PDV-2026) to establish the tax basis for future disposals by the receiving spouse.
Key Takeaways
- Three-Year Safe Harbor: The exemption applies only if the division agreement is notarized and registered in the State Register of Property Rights within 36 months of the divorce certificate date. Late divisions are treated as taxable gifts (ПДФО 18% + 1.5% military tax on full market value).
- Basis Step-Up for Recipient: The receiving spouse’s tax basis for future sale becomes the value stated in the notarized valuation report (not the original acquisition cost). This prevents double taxation of the same economic gain but requires careful documentation to withstand future tax audits.
- Mortgage Liability Allocation: If the divided property secures a joint mortgage, the bank’s consent to release one spouse is required. The law provides that the assuming spouse’s basis includes the outstanding loan principal taken over, reducing future taxable gain on sale.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement