Publication date: 11.06.2024
Taxes when buying real estate: how much and how to pay, the main stages
Buying real estate is a significant event that requires not only financial costs for the real estate itself, but also consideration of tax obligations. In Ukraine, the purchase of real estate is accompanied by the payment of various taxes and fees, which it is important to know in advance. In this article, we will consider how much and how to pay taxes when buying real estate, as well as the main stages of this process.
Basic taxes when buying real estate
Personal income tax (PIT)
Personal income tax is paid by the seller in case of sale of real estate if he has owned it for less than three years or if it is not his only residence. The personal income tax rate is 5% of the amount of the sales contract.
Military collection
The military fee is also paid by the seller and is 1.5% of the amount of the sales contract.
State Duty
The buyer pays the state duty for registration of ownership of real estate. The amount of the duty is 1% of the appraised value of the real estate or the amount of the contract (depending on which is higher).
Mandatory state pension insurance levy
The buyer pays a fee for mandatory state pension insurance in the amount of 1% of the appraised value of the real estate.
Stages of paying taxes when buying real estate
Preliminary consultation and evaluation
The first step is to get a lawyer's advice on tax obligations when buying real estate. A lawyer can provide a legal opinion on the amount of taxes that must be paid and the procedure for paying them. This will allow the buyer to prepare for financial expenses in advance.
Real estate appraisal
To determine the amount of taxes, it is necessary to evaluate the property. This can be done with the help of a licensed appraiser. The estimated value will be used to calculate the state duty and the mandatory state pension insurance fee.
Conclusion of a sales contract
After evaluating the real estate and preparing all the necessary documents, a sales contract is concluded. At this stage, it is important to consider all tax aspects and ensure that all taxes and fees are calculated correctly.
Payment of taxes
The importance of legal support
In the process of buying real estate and paying taxes, it is important to have professional legal support. Consulting a lawyer will avoid mistakes and ensure the correctness of all actions. The help of a lawyer online will ensure promptness and convenience of obtaining legal services at all stages of the process.
A lawyer's legal opinion will help to evaluate all tax aspects of the agreement and make the right decisions regarding the payment of taxes. A lawyer can also provide a written consultation, which will become an official document and can be used in case of disputes.
Conclusions
Paying taxes when buying real estate is an important part of the process that requires attention and diligence. Knowing the main taxes and fees, as well as following the stages of their payment, will help to avoid problems and ensure a successful conclusion of the transaction. A lawyer's consultation, a written consultation and online help from a lawyer will provide professional legal support, help you avoid mistakes and ensure the protection of your rights and interests.
