Are you selling or buying a home? Calculate the amount of taxes in advance!
Whether you are buying a real estate using a housing certificate as compensation from the state or selling your own property due to relocation, remember that such deal is a subject to taxation.
Check the tax rules in advance to avoid unexpected expenses and to complete all the paperwork correctly.
For buyers
Pension contribution — 1% of the property value.
For example, if the property costs $1,000,000, the pension contribution will be $10,000.
Important! The mandatory state pension insurance fee on real estate purchases is not payable if the property is being purchased for the first time. This can be confirmed by a statement from the buyer that the buyer does not have and has not acquired ownership of the property (including privatization, inheritance, gift, purchase, in particular as a share in the joint property of spouses). It is also possible to obtain an extract from the State Register of Real Rights to Real Estate confirming the absence of registered ownership rights to the property.
If you purchase housing using a Housing Certificate, you will also have to pay an administrative fee for state registration of the encumbrance (imposition of a 5-year ban on the alienation of real estate) – 0.05 of the subsistence minimum for able-bodied persons, i.e. UAH 151.4.
For sellers
Sellers pay much more in taxes and fees when selling a home, including:
State duty – 1% of the property value, paid by the seller when the contract is notarized.
Similar to the pension fee, if the property is worth UAH 1,000,000, the state duty will be UAH 10,000.
Personal income tax (PIT) and military levy
Costs of preparing a property valuation report.
Here, the cost will be determined individually, by agreement.
Additional payments
It is important to understand that additional payments can be divided between the seller and the buyer by agreement. Such additional payments include:
- Notary services
- Information references and documents (fees for searching the registers for information necessary for the notary to draw up the purchase and sale agreement).
The state has partially reduced the financial burden on holders of housing certificates
Thus, holders of housing certificates whose homes have been destroyed as a result of the war do not pay administrative fees for:
- State registration of the termination of ownership rights due to destruction;
- State registration of ownership rights to housing purchased using a housing certificate.
Knowledge of the taxes payable when buying or selling real estate will help you calculate all costs in advance and avoid unpleasant financial surprises. It will also allow you to correctly draw up documents and conduct the transaction in accordance with the requirements of the law.
If you have additional questions about purchasing a home with a housing certificate, you can immediately sign up for an online consultation with the lawyers of the PravoVsim platform using this link.
