Real estate re-registration. Taxes and duties
When you decide to re-register your real estate, it is important to pay attention to all the payments you will have to make. This is especially true if you plan to take ownership of the property in the future. The process of real estate registration involves various expenses that can significantly affect your budget.
Below, we will discuss the main costs and rules that you need to consider when formalizing a real estate transaction.
State duty and pension tax
First of all, you need to pay the state duty and pension tax. These two payments amount to 1% of the apartment price each. However, it is important to note that the price specified in the purchase agreement may differ from the appraisal value set by the appraiser.
If you specify a minimum price in the agreement, for example, UAH 1, but the appraiser determines a much higher value, you will be obliged to pay the higher amount. Thus, the actual amount of the state duty and pension fee may be higher than you expected.
Notary services
One of the important elements in the real estate registration process is the services of a notary. The cost of these services usually starts at UAH 8,000 and may vary depending on the complexity of the transaction, location, and other factors. A notary ensures the legality of the transaction, checks all the necessary documents and provides legal support, which makes their services indispensable.
Personal income tax and military duty
Another important aspect is the personal income tax (PIT). The amount of this tax can range from 0% to 5% of the transaction amount. For example, if you have owned the property for more than three years and this is your first transaction, the tax rate will be 0%.
If the transaction does not meet these criteria, you will have to pay a tax of 5%. In addition, a military tax of 1.5% is added to this tax.
Appraiser services
To determine the market value of real estate, you will need the services of an appraiser. The cost of such services is usually about UAH 1,000. Real estate appraisal is mandatory because it affects the amount of state duty, pension and personal income tax.
Why you should contact GlobalBud Ukraine
Re-registration of real estate is a complex process that requires financial costs. Before starting this process, you should carefully calculate all possible costs to avoid unpleasant surprises.
If you have any questions about real estate, including the re-registration process, you can contact GlobalBud Ukraine, where you will receive professional advice and support.
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