Most often, our clients are looking to get rid of their old property in order to buy a new one that will better suit their current status, marital status or inner sense of well-being, or maybe just be more profitable. If you dare sell an apartment(or at least her part), it is worth remembering that every extra zero in the price will respond to you with the same extra number when paying taxes. And especially if you are lucky enough to sell not one apartment, but several in one calendar year. The higher the income, the higher the expenses - an unwritten rule invented by the tax authorities for homeowners who want to say goodbye to their status.
If you've owned several properties for less than three years that you've decided to part with in exchange for cash, you should consider taxes. Residents of Ukraine with resident status must pay:
- for the first sale: state tax in the amount of 5% of the value of the object and 1,5% military levy;
- for the second sale: state tax in the amount of 18% of the value of the object and 1,5% military levy.
All subsequent sales are subject to a similar tax – 18%. Separately, it is worth mentioning another category of sellers, namely those who are not citizens of Ukraine, that is, they are considered tax non-residents. In most states, this category of property owners is distinguished from others and has separate rules. So, non-residents in Ukraine must pay the same 18% state tax and 1,5% military levy both at the first and at the second sale.
Beginner investors are advised to read our material on the topic taxes upon purchase real estate, because quite often newcomers, blinded by luxurious repairs, trivially forget about additional expenses and face this surprise when they are most unprepared for it, and their wallets are exhausted.
Recently, the founder of the real estate agency THE Capital, Kostyantyn Pisarenko, became interested in the topic of taxes. Our founder talked about new tax, which was introduced this summer. Hurry up and watch the informative video on the channel "Real Estate Without Censorship" (NBC), in order not to let the tax office take you by surprise.
