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Sale of real estate that has been owned for less than 3 years
The sale of real estate is a standard agreement characterized by its own specific features. One of the most common nuances is the accrual of tax (in the case of the first and each subsequent sale). The amount of tax payments is also influenced by, among other things, the period of ownership of real estate by the relevant person. Here, one should also take into account certain difficulties that a person may face when she is faced with the task of selling an apartment in Ukraine while staying abroad. Read more about this in this article.
Selling an apartment (house) in Ukraine: what is the procedure?
Procedure
The sale of an apartment (and not only) requires careful preparation, verification of documents and notarization of the final agreement in accordance with the Civil Code. The whole process can be divided into several stages:
- verification of documents from the parties (certificates of ownership, extract from the state register, technical passport, power of attorney for the representative, etc.);
- conducting a property appraisal, in particular, when it comes to the sale of a plot of land that is located near the house (obtaining an expert appraisal report);
- verification of other information that will be of key importance to the buyer (absence of encumbrance);
- conclusion of a preliminary agreement (agreement of intent), if the parties have agreed on it;
- settlement with the seller (advance payment);
- conclusion of a sale and purchase transaction at a notary and its notarial certificate;
- payment of all mandatory payments (calculated taxes, administrative fee for making changes to the State Register of Real Estate Rights, full payment for an apartment or house).
Documents
The following package of documents is required for certification of the contract of purchase and sale of an apartment:
- firstly, a passport of a citizen of Ukraine (from each country);
- secondly, the notarized consent of the spouse (if the apartment or house is jointly owned by the spouses);
- thirdly, power of attorney on the person of the representative (when the owner is abroad);
- fourthly, a report on an expert monetary assessment (for land plots);
- finally, a document confirming the source of the funds (may be required by a local bank for non-cash payments of significant amounts).
Tax rates
When concluding a contract for the purchase and sale of real estate in Ukraine, the parties must pay taxes in the amounts. As a rule, this is personal income tax (PIT) – 0%, 5% or 18% (depending on the term of ownership and the person of the seller), military levy (VZ) – 5%, when the personal income tax rate is applied. In addition, it is necessary to take into account:
- 1% state tax;
- 1% fee in PFU (can be returned at the first sale).
What benefits apply to persons selling an apartment that they have owned for less than three years?
Tax rates in this process for the first sale or purchase of an apartment, if the person owns it for more than three years, are 0% (both for personal income tax and for personal income tax). If you have owned the apartment for less than three years, and even if it is the second sale for the entire time, the following calculations apply: 5% personal income tax, 5% income tax, and 1% state duty and tax at the PFU. Thus, we get two possible options:
- option 1 – 2% of the real estate value (if more than 3 years and the first transaction);
- option 2 – 12% of the real estate value (if less than 3 years in total).
It is important to know! When an apartment is sold by a foreigner, the personal income tax rate of 18% is applied in any case. For more detailed information, we suggest you book a consultation with one of our real estate lawyers.
What are the special features of real estate sales in Ukraine during martial law (in the context of taxation)?
The sale of immovable property in the conditions of martial law in general provides, firstly, the exemption of individuals from paying state duty, and secondly, the non-taxation of a certain area of the property. Below is an exhaustive list of them:
- exemption from 1% of the state tax for persons with disabilities obtained as a result of the war, victims of the Chernobyl disaster, participants in hostilities, family members of military casualties;
- no tax on the sale of real estate with an area of up to 60 sq.m. (for an apartment) or 120 square meters. (for a residential building);
- tax on real estate (except for land) is not charged for the period when the territory is included in the list of territories of active hostilities or temporarily occupied regions.
Can a person abroad sell his apartment in Ukraine?
Yes, face, this is a common practice today. This can be done, in particular, because of a power of attorney certified by the Ukrainian consulate in the relevant country. The procedure is complicated only by the need for legalization of documents for the transaction and the transfer of funds for the sale of an apartment or house. Our real estate lawyer, having the necessary knowledge and experience, provides comprehensive support for such a procedure for clients.
How can our lawyer help you in the support of real estate transactions?
We offer comprehensive protection of your interests at every stage of the process. The main services of our lawyer include:
- inspection of the real estate object;
- analysis of submitted documents;
- tax consulting (when selling real estate);
- development and coordination of the preliminary and final sales contract;
- preparation and legalization of a power of attorney for a representative;
- control of the transaction certification procedure and data entry in the DRRP by the notary;
- help with another pressing issue.
To get a consultation and find out the cost of supporting the sale of real estate (including property owned for less than 3 years) – fill out the form below.
Calculate the cost of services
1 question
Is the property located in Kyiv or Kyiv region?
2 question
Do you need advice on real estate and construction?
3 question
Do you need legal assistance urgently?
In which regions of Ukraine do you work?
The department of real estate and land law, as a rule, works in Kyiv and the Kyiv region.
- We provide our services in all regions of the Kyiv region, for example:
- Bilotserkiv district (towns of Skvira, Tarasha, Bila Tserkva, Uzyn, Tetiiv).
- Boryspil district (the cities of Boryspil, Pereyaslav, Yagotyn).
- Brovary district (the cities of Brovary, Berezan).
- Buchansky district (towns of Bucha, Irpin, Vyshneve).
- Vyshhorod district (the cities of Vyshhorod, Slavutych).
- Obukhiv district (towns of Obukhiv, Boguslav,
- Vasylkiv, Kagarlyk, Myronivka, Rzhyshchiv, Ukrainka).
- Fastiv district (the cities of Fastiv, Boyarka).
It is worth noting that on some issues (services) we work throughout Ukraine, contact and clarify information by phone!
Do you provide consultations online or over the phone?
Yes! If you do not have the opportunity to come to the office in Kyiv, then you can pay and receive a consultation by phone or in one of the applications for conducting calls/conferences.
You may also need:
Land plot registration in the State Land Cadastre (DZK)
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Read moreLegalization of a private house
Read morePrivatization of a cooperative apartment in Kyiv
Read moreLand privatization
Read morePrivatization of an apartment
Read moreLegalize squatter
Read moreLegal assistance when buying a plot of land
Read moreDivision of the apartment into two apartments
Read moreLegal assistance when buying an apartment
Read morePrivatization of an apartment on the basis of a warrant
Read moreLand plot registration
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