To begin with, it is worth understanding what real estate tax is. According to the laws of our country, residential and commercial objects are subject to taxation for the right to own and use them. And if by 2022 the situation with who should pay, how much and to whom was extremely clear, then in the conditions of martial law in Ukraine, the circumstances have changed a little. In the direction of real estate owners or not? This is exactly what we will have to deal with.
We would like to warn you that non-payment of tax will not go away without a trace. In order not to face problems and avoid fines, you should pay due attention to studying this topic.
Who will have to pay taxes this year and for what?
We suggest starting this not-so-pleasant topic with a positive point - not all real estate objects require the payment of taxes. Additional costs are not terrible if you own:
- an apartment size up to 60 m²
- the house size up to 120 m²
- other objects, such as garages and outbuildings, up to 180 m² in size
If you have decided to live on a large foot and please your loved ones with the availability of personal space for each of them, you probably did not manage to fit your possessions within the given framework. You have to pay for comfort - the tax has crept in unnoticed and is waiting for you to take action. The amount you will have to pay for the ownership and use of your property is set at the local level. Clear and reasoned numbers are waiting for you.
Do not rush to say goodbye to blood savings. You will have to pay tax not for the entire object, but only for the number of meters by which it exceeds the specified norms.
Need or not: will the tax affect you?
We have already managed to find out that all owners of "extra" square meters will not be able to enjoy a spacious room without additional costs. But there are also a number of rules that you should learn about:
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Can I avoid tax if I am a minor? – unfortunately, my young friend, your parents or guardians will have to pay taxes out of their own pockets
- can retirement age be the reason for a discount? - and again the answer is negative. General rules apply to everyone
- who should pay - the owner of a personal account
- and what to do if several owners? - each of them is obliged to cover their part of the costs
All, but not all - some categories of the population are exempt from paying taxes. See yourself on their list?
- adoptive and large families with 5 or more children
- disabled persons and orphans who have not reached the age of majority, live with only one guardian or parent and own no more than one real estate object
- organizations such as religious communities, children's schools and community organizations for people with disabilities
- properties owned by local or state authorities, unfit for habitation and not used for commercial purposes
A special category of those who are exempt from paying taxes in wartime are people whose real estate is located in the occupied territories, in the war zone, was damaged or destroyed.
How much and what to pay?
The real estate tax may differ depending on the tax in question:
- property tax
- sales tax
- luxury tax
By luxury, we mean not those extra meters that you have already learned about, but real architectural masterpieces that impress with their magnificence:
- apartments from 300 m² in size
- houses from 500 m² in size
In addition to the principal amount, you will have to pay an additional 25 hryvnias each year of using the facility.
If you used to sincerely love summer for its bright sun, hot weather and lush greenery, now you will be anxiously waiting for its middle because letters from the tax office arrive by July 1. Do not blindly believe every figure and every extra hryvnia that they want to take from you. No one has canceled the human factor, so it is worth excluding possible mistakes and typographical errors by calculating the amount yourself. To do this, remember a few important rules:
- don't be in a hurry to accuse your friend of fraud if he is just lucky enough to live in a more loyal place - taxes are different in different cities because they are set by local authorities
- the tax is charged only for "extra" meters, but not for the entire size of the apartment, house or other object
- the numbers are not taken from the head - it is customary to take the amount of the official minimum salary recorded in the previous year as the basis for calculations. Confused? We explain: if you pay taxes in 2023, you should take the minimum wage for January 1, 2022
Try to calculate the tax you will have to pay yourself. For this, we need to know a few nuances: the size of your apartment (for example, 74 m2), preferential square footage (60 m2), minimum wage (6 UAH) and tax rate. The tax rate is 500% of the minimum wage, which in this case is UAH 1,5.
Let's proceed to calculations according to the long-established formula:
(area of your property - preferential square footage) × tax rate = tax you must pay → (74 - 60) × 97,5 = UAH 1365
Everything is not as scary as it might seem, right?
How the tax office teaches citizens punctuality
You will be fined for late payment or non-payment of tax at all. The letter you receive from the tax office will clearly state the date by which you must deposit the amount into the account. If for any reason you could not do it on time, you will be fined. If less than 30 days have passed since the specified date, the fine will be 10% of your debt. If you are a risky child and decide not to pay attention to the "letter of happiness" and its requirements for more than a month, the fine will increase to 20%. If you at all systematically ignore your obligations to the state, expect at least - not only large fines, but also blocking of accounts.
Do not be lazy to calculate the tax amount yourself. In the event that the tax officials made a mistake, you have every right to submit an application for re-verification of the data.
Premium real estate agency THE Capital considers its goal not just to help clients choose real estate for purchase, leases and conducting commercial activities. We are committed to providing a full range of services and professional support to ensure you enjoy your investment. Contact us for qualified advice from our experienced experts.
