As of July 1, 2020, the moratorium on the sale of agricultural land, which had been in effect since 2002, ended in Ukraine, and the land market opened.
Now purchase of land available to every Ukrainian. According to statistics, in almost 4 months, 18771 deals were concluded within the framework of the land market. It is not so important whether it is a lot or a little. More important are the features of buying a plot of land, how to choose the right plot, what documents to request from the seller, and how to conclude an agreement. We will consider all these questions in the article.
Tax on the purchase of a plot of land
It would be surprising if the government, after lifting the land moratorium, did not oblige Ukrainians who wish to own a plot of land or sell it to pay taxes to the state treasury. By the way, if you decide to quickly buy an apartment in Kyiv, we recommend contacting the best elite real estate agency THE Capital. All citizens of Ukraine who own land are required to pay land tax annually.
- For assessed plots, the land tax is no more than 3% of the amount of the normative monetary assessment.
- For public lands, the tax does not exceed 1%.
- For agricultural lands, depending on their purpose, the tax is a minimum of 0,3% and a maximum of 1%.
The following tax rates are provided for the parties to the land purchase agreement:
- 5% personal income tax;
- 1,5% military levy from the value of the plot specified in the contract.
Among other things, Ukraine wants to introduce a tax on land plots that are owned by summer cottage and garden cooperatives, used for their intended purpose, but not officially registered. There is no fixed amount of tax. It is assumed that it will be calculated depending on the normative monetary valuation of the land plot. Now we see that the Cabinet of Ministers of Ukraine is doing everything with enviable tenacity to make Ukrainians pay more for land.
See also: Power of attorney for the sale of an apartment.
What does the cost of buying a plot depend on?
A plot of land in itself is an immovable property, which is classified according to its intended purpose and differs in natural and physical features. 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;
- plot size;
- market demand for land plots in the region;
- state of the land;
- availability of communications, etc.
In order not to make a mistake with the purchase of a plot, you need to develop a selection strategy and set clear criteria for land selection. 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 plot of land 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 a plot of land is the forgery of ownership documents. And the worst thing is that the fact of fraud is revealed after some time.
See also: Taxes when buying an apartment.
Imagine that you have built a house on a plot of land, and out of nowhere, the legal owner of the land appears and demands to return his territory back in court. And the seller of the land plot was also traced. In order not to become a victim of fraud with precincts, 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 can also inspect the plot before purchase and conduct a cost estimate. Subscribe to our real estate blog updates and get the latest posts from THE Capital real estate agency.
