Strengthened protection of property rights to real estate: what has changed
The law strengthened the protection of property rights to real estate The Verkhovna Rada adopted the Law “On Amending Certain Legislative Acts of Ukraine regarding the Improvement of State Registration…

Continue reading →

The results of 2019 in the real estate market of Kiev: the market was “stormy”, prices have changed significantly
The real estate market in Kiev has been active throughout 2019. At the same time, the price situation, supply and demand changed. About what happened in the past year, learned…

Continue reading →

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…

Continue reading →

Taxes on real estate transactions in 2020: how much, when and what’s new

Due to the adoption of new laws, significant changes are expected in the taxation procedure for real estate transactions

In 2020, in Ukraine, sellers and buyers of real estate will still have to pay taxes to the state. This also applies to tenants. What taxes are in real estate transactions in 2020, who is obliged to pay them, and what has changed in the legislation, was found out by the portal “Capital Real Estate” 100realty.ua.

Taxes on the purchase / sale of real estate in 2020
In 2020, Ukraine will have to pay taxes to both buyers and sellers of real estate. The issue of taxation on real estate transactions is regulated by Art. 167, 172 of the TCU, as well as partially regulated by Art. 173 TCU (the size of the tax base).

Related article: What will change from January 1, 2020 in Ukraine – an increase in taxes, salaries, a living wage and fines

Anna Kovaleva, an expert at the RIYAKO & PARTNERS law firm, named the types and amounts of taxes that the state will have to pay in 2020 for real estate transactions.

What taxes does a property buyer pay in 2020?
the amount of 1% of the price of real estate in the Pension Fund (for residents and non-residents);
state fee in the amount of 1% of the value of the object;
administrative fees for the renewal of ownership in the State Register of Property Rights.
What taxes does a property seller pay in 2020?
if you, as a seller, have owned real estate for less than three years, then you need to pay: state duty (1% of the price of the object specified in the contract, but not lower than its estimated value); income tax (5% of real estate value) and military duty (1.5% of real estate value);
if you own real estate for more than three years and this is your first sale of real estate during the calendar year, then the fee will amount to 1% of the price of the object specified in the contract, but not lower than its estimated value;
if non-resident of Ukraine, you need to pay: state duty (1% of the price of the object specified in the contract, but not lower than its estimated value); personal income tax (15% of the value of the property) and military duty (1.5% of the value of the property).
Related article: Mortgages in Ukraine in 2020: what are the conditions and how much loan rates will be reduced

What are the new taxes on the sale of real estate in 2020?
At the end of 2019, Ukraine adopted in first reading bill No. 1210 of 08/30/2019, “On Amending the Tax Code of Ukraine regarding the improvement of tax administration, elimination of technical and logical inconsistencies in tax legislation”, which amended Articles 172 of the Tax Code . The law was adopted on first reading.

According to Oleg Dobrovolsky, partner of ID Legal Group, the amendments provide that the income received by an individual from the sale of a second property during the year (for example, 2020) is subject to taxation at a rate of 5%. Income received by an individual from the sale of third and subsequent real estate during the year (for example, 2020) is subject to taxation at a rate of 18%.

“Now bill No. 1210 is presented for second reading. And therefore, in which edition such a bill will be adopted, we will wait for the news, ”the expert says.

Related article: What will happen to the prices of apartments and new buildings in Kiev in 2020: forecast from market experts

Rental Taxes in 2020
According to Article 170.1.5 of Section IV of the Tax Code of Ukraine, the person responsible for accruing and paying tax to the budget is the lessor, who is obliged to do this within the time period established by the Code for the quarterly reporting (tax) period.

Sergey Tarasyuk, Managing Partner of Tarasyuk & Partners JSC, names three legal options for renting real estate by an individual:

On behalf of an individual on a single tax within 100 sq.m. residential and 300 sq. m non-residential, as well as up to 0.2 hectares of land (group 2 or 3, depending on the status of the tenant). Single tax rates for the 2nd group – 944.60 UAH, per month, for the 3rd group – 5% or 3% + VAT. Additionally, a single social contribution is paid in the amount of not less than 1039.06 per month, except for pensioners who are exempt from payment.
On behalf of an individual entrepreneur on a common taxation system. Personal income tax rate on net income: 18% + military fee 1.5%, also a single social contribution on net income, but in the amount of at least 1039.06 per month and recalculated at the end of the year at a rate of 22% of net income and within maximum base 70 845 UAH per month. Reporting is submitted annually, as before.

Professional warehouses in Kiev: supply shortages in the market
According to the results of the first quarter of 2019, the positive dynamics was observed in the professional warehouse market The warehouse real estate market in the capital is actively…

...

Warehouses for storing personal belongings: will there be a demand for the service?
Storage features and how much it costs In Kiev, there are warehouses for personal storage of things. Such many have seen in American films or abroad. What awaits this segment…

...

Buy an apartment without a realtor: difficulties, risks and price issue
You need to be careful and consider the possible risks. Most people who decide to buy an apartment in Kiev often want to save money and not pay realtors. It…

...

New General Plan of Kiev: how the capital will develop, how much housing will be built and where the metro will be laid
On Monday, December 16, a draft of the new General Plan of Kiev was presented. The capital real estate portal 100realty.ua found out what the capital of Ukraine expects, how…

...