HOW AND HOW MUCH DOES IT COST TO REFORM AN APARTMENT IN UKRAINE? - LEGAL SUPPORT
When selling or buying an apartment, it is important to consider re-registration, as it can affect the final value of the transaction. In addition, it is necessary to take into account taxes and state duty. In this article, we will consider how much it will cost to renew an apartment in Ukraine in 2024.
What is the cost of remodeling an apartment in Ukraine?
Redesignation of the apartment can be paid by both the seller and the buyer, since the legislation does not regulate this issue, and the parties agree on their own. In addition, re-registration may be related to a gift or inheritance.
The costs of re-registration include the services of a notary public (public or private), the work of real estate appraisers, state duty and tax. The price depends on various factors: the services of a private notary will cost more, and a home appraisal may not be necessary. The cost also varies depending on the institution where the re-registration is carried out - a notary, TsNAP or real estate agency. On average, redecoration of an apartment in Kyiv costs about $150, but the cost may increase for new buildings or elite areas.
Re-registration is always accompanied by the payment of duty. If the seller owned the apartment for more than three years and did not receive income from the real estate, his income is not subject to tax.
Taxes that must be paid when selling an apartment
When selling residential real estate, the seller is obliged to pay personal income tax. The amount of tax and the need to pay it depend on several factors, in particular: the number of sales transactions during the reporting period, the status of a tax resident, the period of ownership of real estate and the method of obtaining it.
If the seller is a resident of Ukraine and sells a second apartment during the reporting period, he pays a tax of 5% of the official value of the transaction. For example, if the apartment sells for $50,000, the tax would be $2,500. If the property has been owned for less than three years, 5% is also payable. For non-residents, the tax is 18%.
In case of sale of the third, fourth and subsequent real estate objects in a year, the tax rate increases to 18%.
The tax does not need to be paid if this is the first transaction in a year, the property has been owned for more than three years or it was inherited.
During the purchase agreement, additional taxes are paid by both the seller and the buyer. This is:
- State tax — 1% of the real estate value (total payment). Disabled persons of WWII, relatives of the dead, disabled persons of I and II groups, victims of the Chernobyl disaster are exempted from it;
- Military tax — 1.5% (paid by the seller);
- 1% contribution to the Pension Fund (paid by the buyer). Those who are on the apartment register or who buy housing for the first time are exempt from payment, although it is difficult to prove.
The cost of re-registration also depends on whether the property is purchased in a new building or on the secondary market. If the housing is in a new building, the re-registration can be performed by the developer for a separate fee, approximately $100.
The price of real estate appraiser services
In addition to income tax, military duty and contribution to the Pension Fund, there are also additional costs, such as paying for the services of an appraiser. This step cannot be skipped, as the real estate appraisal report is a mandatory document to be provided by the seller. Accordingly, it is the seller who covers the costs of evaluating the apartment.
However, there is an opportunity to save. From 2021, you can get a real estate value certificate online for free. To do this, you need to register in the unified database of FDM reports and fill out a form with information about the apartment. The system will automatically conduct an assessment and generate a certificate.
However, the service does not always reflect the value that the seller is satisfied with. If the owner does not agree with the online appraisal, he can contact a professional appraiser. The services of such a specialist are relatively inexpensive and depend on the goals of the assessment. In the case of selling an apartment, the appraisal price starts at UAH 1,000.
The cost of notary services for registration of re-registration of an apartment
Conclusion of a real estate purchase and sale agreement is carried out through a notary, who enters information about the agreement into the register of rights to real estate. During the re-registration of the apartment, it is necessary to pay for the services of a notary public.
In order to reduce costs, you can contact a public notary, but it is worth considering that the procedure in this case may take more time compared to a private notary. Private notaries independently determine the cost of their services, so their prices are not only higher than public ones, but can also differ significantly depending on the specialist. The cost of private notary services also depends on the city.
Usually, the payment for notary services is shared equally between the seller and the buyer, but the parties can agree on other terms. If the agreement does not provide for an equal division of costs, this may affect the final value of the object.
Services of Civil Law Lawyers in Kyiv
The services of civil law lawyers in Kyiv can greatly facilitate the process of re-registration of an apartment in Ukraine, as they provide professional support at every stage. First, you will need to get a lawyer's consultation, which will allow you to understand all the nuances of the procedure. In general, engaging a lawyer for apartment re-registration is a profitable and convenient option for property owners, as professionals provide quality legal support and support at all stages of the process.
How can we help you?
Re-registration of an apartment in Ukraine is an important procedure that may be needed in various situations, for example, in case of sale, gift, inheritance or change of owner. To re-register an apartment, you need to complete several steps, including preparing documents, contacting the relevant authorities and paying the necessary fees.
Stages of re-registration:
- Preparation of documents: Collect all the necessary documents, such as a passport, identification code, title documents for the apartment (purchase agreement, certificate of inheritance rights, etc.), as well as an extract from the register of rights to real estate.
- Contacting the registration service: After preparing all the documents, you need to contact the local registration service or a notary to register new ownership rights.
- Payment of fees: Administrative fees may be charged for registration actions. The amount of the fee varies depending on the region and type of real estate, but usually it is about 1-2% of the cost of the apartment.
Cooperation with legal marketplace 'Consultant'
Cooperation with the legal marketplace "Consultant" can simplify the process of re-registration of an apartment in Ukraine, as you can get advice from experienced lawyers who specialize in real estate. Ask for a consultation, and we will help you prepare all the necessary documents and find the best solution for your situation. Legal marketplace "Consultant" provides high-quality services and an individual approach to each client. Contact us today to get support from our experienced professionals! Call +380637375800 for qualified assistance right now!
Re-registration of an apartment in Ukraine is an important stage that requires a careful approach to the preparation of documents, payment of taxes and fees, as well as compliance with all legal requirements. The involvement of professional lawyers and cooperation with the legal marketplace "Consultant" can greatly simplify this process, providing proper support and support at every stage. Since the cost of re-registration can vary depending on many factors, such as the location of the property and the services chosen, it is important to get qualified help to avoid unexpected costs and ensure a successful completion of the transaction.
