In this video, we will detail the tax amounts when buying and selling an apartment or apartments, including for non-resident foreigners.
I will cover:
- 🔶 Pension Fund Contribution
- 🔷 State Duty
- 🔶 Personal Income Tax
- 🔷 Military Levy
- 🔶 How to Save on Taxes?
- 🔷 How to Quickly and Free of Charge Appraise Real Estate?
- 🔶 Online calculator to quickly calculate tax amount
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Pension Fund Contribution
The contribution rate is 1% of the property value. The buyer pays the contribution.
In
Law of Ukraine On the Collection for Mandatory State Pension Insurance benefits are provided. Those exempt from paying the contribution are individuals waiting in line to purchase housing or purchasing housing for the first time. In practice, these benefits do not work. Notaries require payment of the contribution before the transaction because there is no way to verify whether the property was purchased for the first time.
State Duty
State duty is levied for notarizing purchase-sale agreements for real estate at a rate of 1% of the property value.
State duty must be paid jointly by the seller and buyer in equal shares. Similarly, notary services for certifying the Purchase-Sale Agreement.
However, in practice it often happens that:
- if the seller is exempt from paying personal income tax (about this tax below), then the full amount of state duty is placed on the seller;
- if the seller's income is subject to personal income tax, then the buyer pays the state duty
In
CMU Decree "On State Duty" benefits are provided for disabled persons and Chernobyl victims. However, if one party to the transaction qualifies for a benefit, the notary will require the other party to pay the state duty in full.
Personal Income Tax
Payment of this tax is the seller's obligation. The tax rate depends on whether the seller is a resident of Ukraine. Residents are Ukrainian citizens, as well as foreigners who have a temporary or permanent residence permit and reside in Ukraine. The tax rate for residents is 5%, for non-residents - 18%.
In
Ukrainian Tax Code a benefit for this tax is provided for both residents and non-residents. If the real estate object is an apartment or individual residential house and has been in the seller's ownership for three years or more, then the tax is not levied. Such benefit works only once per calendar year. That is, when selling a second apartment within a year, the tax must be paid.
Regarding the sale of objects that have the status of non-residential real estate, including apartments, there are no益
