Publication date: 07.06.2024
Home sales tax in 2024: everything you need to know
Introduction
Selling an apartment is one of the most common financial transactions that citizens encounter during their lifetime. In this regard, it is important to understand exactly how such a sale is taxed and what tax obligations arise for the seller. In 2024, there will be certain features and nuances of taxation of real estate transactions in Ukraine, which should be known to everyone who plans to sell their home.
General rules of taxation
According to the Tax Code of Ukraine, income received from the sale of one's own apartment or house is taxed at a rate of 5%. This rate applies if the seller has owned the property for at least 3 years. If the term of ownership was shorter, then the income is taxed at the rate of 18% (with the application of the military levy of 1.5%).
It is important to note that the income from the sale is subject to taxation, i.e. the difference between the sale price and the documented original value of the apartment (the amount for which it was purchased). If the seller cannot document the original cost, then the tax base will be the full sales price.
Features of taxation
In Ukraine, there are certain features and exceptions in the taxation of the sale of apartments. In particular:
Sale of a single dwelling. If the apartment is the seller's only home and he sells it no more often than once every 3 years, then the income from such a sale is not taxed at all. This rule applies regardless of the term of ownership of the real estate.
Sale of an object of unfinished construction.Income from the sale of unfinished construction (for example, an unfinished apartment) is taxed at the rate of 18% (15% personal income tax and 3% military levy).
Benefits for ATO/OOS participants. Participants of ATO/OOS, as well as internally displaced persons are exempted from paying income tax upon the sale of one real estate object during a calendar year.
Sale of inherited real estate. Income from the sale of an inherited apartment is not taxed regardless of the term of ownership, if the testator owned it for at least 3 years.
Tax calculation procedure
To calculate the tax that must be paid when selling an apartment, you need to perform the following steps:
- Determine the selling price of the apartment.
-Documentally confirm the original cost of the apartment (the amount for which it was purchased).
-Calculate the income as the difference between the selling price and the original cost.
-Apply the appropriate tax rate (5% or 18%) to the calculated income.
-Pay the accrued tax to the budget.
It is important to note that the payment of tax is a mandatory condition for the execution of the contract of sale of the apartment. Without documentary proof of tax payment, the notary will not be able to certify the transaction.
Conclusions
The sale of an apartment in Ukraine in 2024 is subject to taxation, but there are certain features and exceptions that should be taken into account. By complying with the requirements of the law and correctly calculating tax liabilities, the seller will be able to avoid problems during the execution of the agreement and ensure the legality of his actions.A detailed understanding of the tax aspects of real estate sales will help citizens make informed decisions and successfully sell their housing assets.
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