Do you remember our lesson on the topic financial monitoring? Then you and I understood that behind this terrible word is hidden the usual practice of checking the solvency and reliability of foreign investors. You didn't know, but some clever person also invented his own name for such investors and businessmen in general.
❝A tax non-resident is a person who, from the point of view of tax legislation, is not considered a resident of the country.❞
In the case of an individual, we are talking about the fact that a person spends less than 183 days within a specific country during the year and carries out most of his financial transactions elsewhere, so he does not make a significant contribution to the local economy. Regarding legal entities, the criteria for their inclusion as residents or non-residents are somewhat different. Yes, the place of establishment and the location from which the actual management of the organization takes place are taken into account. If a resident of a country, its citizen, pays taxes for the benefit of his state constantly and from all his income, wherever he receives it, then a non-resident replenishes the treasury only from that part of his income that was received within the borders of a specific country.
In Ukraine, a tax non-resident can be both a foreigner and a Ukrainian himself, provided that he lives outside the borders of his native country for more than 183 days a year. According to our legislation, a non-resident pays significantly higher taxes for his activities, including for transactions related to the real estate market. Remember this nuance if you plan to carry out one of the possible transactions related to real estate:
- gift;
- acceptance as a gift;
- receiving an inheritance;
- the second and all subsequent sales of residential real estate within one year;
- sale of commercial real estate;
- sale of property rights to real estate that you plan to purchase.
Example of use:
— Hello, how are you doing with the sale of yours? office? Have you finished yet?
- But not everything happened as expected.
- What do you mean? Have any problems?
— He made himself known in Poland for almost a year. Now I have received the status of a tax non-resident, so the property taxes are much higher than I calculated.
There is no escape from the status of a tax non-resident, but this is no reason to put an end to real estate transactions. We will select such a favorable offer that even a slightly inflated tax will not be so painful. And thanks to apartment rental you will generally return all funds in a number of years.
