On July 1, 2020, the moratorium on the sale of agricultural land, which had been in effect since 2002, was terminated in Ukraine, and the land market was opened.
Now purchase of land available to every Ukrainian. According to statistics, 4 transactions were concluded within the land market in almost 18 months. A lot or a little is not so important. What is more important is what features the purchase of a land plot has, how to choose the right plot, what documents to require from the seller and how to conclude a deal. We will consider all these questions in the article.
Land purchase tax
It would be strange if the government, after the lifting of the moratorium on land, did not oblige Ukrainians who wish to acquire ownership of a land plot, or sell it, to pay taxes to the state treasury. By the way, if you decide quickly buy an apartment in Kyiv, we recommend contacting the best luxury real estate agency THE Capital. All citizens of Ukraine who are owners of land plots are required to pay land tax annually.
- For the assessed plots, the land tax is not more than 3% of the amount of the normative monetary value.
- For common lands the tax is not more than 1%.
- For agricultural land, depending on their purpose, the tax is a minimum of 0,3% and a maximum of 1%.
The parties to the transaction for the purchase of a land plot are subject to the following tax rates:
- 5% personal income tax;
- 1,5% of the military tax from the specified in the contract value of the site.
Among other things, in Ukraine, they want to introduce a tax on land plots that are owned by country and garden cooperatives, are used for their intended purpose, but are not officially formalized. There is no fixed tax rate. It is assumed that it will be calculated depending on the normative monetary value of the land plot. Now we see that the Cabinet of Ministers of Ukraine with enviable persistence is doing everything to make Ukrainians pay more for land.
Read more:: Power of attorney for the sale of the apartment.
What determines the cost of buying a land plot?
The land plot itself is real estate, which is classified according to its intended purpose, different natural and physical characteristics. In this regard, it is impossible to determine a universal price for the purchase of a plot. The cost of land depends on many factors:
- location;
- the size of the plot;
- market demand for land in the region;
- the state of the earth;
- the presence of communications and the like.
In order not to miscalculate with the purchase of a plot, you need to develop a selection strategy and set out for yourself clear criteria for selecting land. In such a case, you can rely solely on personal preferences and financial capabilities. However, it will be quite difficult for you to understand the legal aspects of buying a land plot without the help of a professional. Moreover, without careful monitoring, you risk not only seriously overpaying, but also running into outright fraud. The most common fraudulent scheme for the purchase of land is the forgery of documents of ownership. And the worst thing is that the fact of fraud is revealed after some time.
Read more:: Taxes when buying an apartment.
Imagine that you have built a house on a plot and out of nowhere, the lawful owner of the land appears and demands the return of their territories back in court. And the seller of the land and a trace caught a cold. In order not to become a victim of fraud with sites, it is better to contact professionals. Today in Ukraine you can easily find a company that provides a full range of services and full support for such transactions. Specialists not only help with the collection of documents and registration, but also can check the site before buying and conduct a cost estimate. Subscribe to our updates real estate blog and get the latest publications from the real estate agency THE Capital.
