TAXES ON REAL ESTATE OPERATIONS
When performing any real estate transactions, you should remember that you are required to pay taxes. Types and amounts of taxes are established by the legislation of Ukraine.
In this article, we will look at the types of taxes that apply to the sale of real estate.
Taxes are paid by both the seller and the buyer.
The seller has the following types:
1) If the seller has been the owner of the property for more than three years, he must pay 1% of the state duty;
2) If the property is owned for less than 3 years, in addition to the state duty, you must still pay income tax of 5% and a military fee of 1.5%
The same taxes should be paid on sale of two or more real estate properties during the reporting period. In this case, such taxes are already paid on the sale of the second and all other sales.
In the same situations, non-residents of Ukraine have to pay 1% of the state duty on real estate value, personal income tax of 15% and military fees of up to 1.5%.
For the buyer:
The law of Ukraine on taxes states that the buyer of residential real estate is obliged to pay 1% of the value to the Pension Fund of Ukraine. Such norms are set for both citizens of Ukraine and non-residents. Contribution to the Pension Fund is not paid only if the property is received as a gift or a contract for life support.
With the agreement of the seller and the buyer taxes can be paid in half and one of the parties.
There are tax exemptions established by the Cabinet of Ministers in Ukraine. The following categories of citizens are entitled to benefits:
– Invalids of the Great Patriotic War, families of the military and missing persons;
– Invalids of the 1st and 2nd groups;
– Chornobyl Accident Liquidators.
If both the seller and the buyer fall into one of the privileged categories of citizens, then they have the right to both not pay taxes. But if only one party has a privileged category, it does not mean that the other party may not pay taxes.