How to claim a refund of mortgage interest

Have you taken out t a mortgage loan to buy or build a home that will be your primary residence? Do you know about the possibility of claiming a tax rebate on part of the interest you have paid on your mortgage loan? 

You are eligible for a tax rebate if you: 

• are officially employed;  
• pay taxes in Ukraine; 
• have taken out a mortgage loan; 
• are using the mortgage loan to build or purchase a residential building;  
• have indicated such housing as your main place of residence (in particular, have registered your place of residence in mortgage housing). 

What is the amount of the tax rebate? 

The tax rebate applies to a portion of the amount of interest on a residential mortgage loan that you paid during the year. 

Please note: the rebate can be granted regardless of whether the loan is in national or foreign currency. 

How is the tax rebate calculated?

The portion of interest eligible for the tax rebate is calculated as:

For example, you have purchased a 75 m² apartment with a mortgage loan and paid UAH 120,000 (UAH 10,000 per month) for the use of the mortgage loan for a year. 

Personal income tax rate in Ukraine is 18%. 

In our example, the housing purchased with a mortgage loan is less than 100 m2, which means that the tax rebate includes the amount of all interest paid, i.e. UAH 120,000. 

UAH 120,000 * 18% = UAH 21,600 

Thus, the amount that the state will refund as a tax rebate is UAH 21,600. 

Note! The amount of the tax rebate for using a mortgage loan will be 18 per cent of the interest paid on the loan during the year, but not more than the amount of personal income tax you have paid in the same period. 

How to apply for the tax rebate

You can apply for a tax rebate in person at the nearest office of the State Tax Service or online using the electronic cabinet of taxpayer. 

Required documents:

• Passport and tax identification number; 
• Annual income tax return; 
• Certificate of income from the place of work; 
• Mortgage loan agreement; 
• Receipts for payment of interest on the mortgage loan. 

If you have any additional questions or need individual legal advice on obtaining a mortgage tax rebate, do not hesitate to contact PravoVsim lawyers.