Publication date: 11.06.2024
Taxes and duties on the sale of real estate: how much and how to pay: legal consequences
The sale of real estate is an important financial transaction, which is accompanied by the payment of taxes and fees. Failure to comply with tax obligations can lead to serious legal consequences. In this article, we will consider what taxes and fees must be paid when selling real estate in Ukraine, how to correctly calculate and pay them, as well as what legal consequences may arise in case of violation of tax requirements.
Basic taxes when selling real estate
One of the key taxes that must be paid when selling real estate is personal income tax (PIT). This tax is paid by the seller and is 5% of the sales contract amount if the seller has owned the property for less than three years or if it is not his only residence. If the seller owns the property for more than three years or it is his only home, he is exempt from paying personal income tax.
In addition to personal income tax, the seller is also obliged to pay a military tax, which is 1.5% of the amount of the sales contract. The military tax is paid in any case, regardless of the period of ownership of the real estate or the number of real estate objects owned by the seller.
Other fees and charges
In addition to taxes, other fees and expenses may arise when selling real estate. One of these costs is the state duty for the notarization of the contract of sale. The size of the duty depends on the value of the real estate and is 1% of the appraised value or the contract amount (depending on which one is higher).
The buyer is also required to pay a fee for mandatory state pension insurance, which is 1% of the appraised value of the property. This fee is paid before the notarization of the contract of sale.
The procedure for paying taxes and fees
Payment of taxes and fees during the sale of real estate occurs in several stages. First of all, the real estate must be appraised by a licensed appraiser to determine its market value. This estimate will be used to calculate taxes and fees.
After the real estate appraisal, the seller and the buyer conclude a sales contract. At this stage, it is important to get the advice of a lawyer to check the correctness of the contract and compliance with all legal requirements. An online lawyer can provide prompt support and help avoid possible mistakes.
After concluding the contract, the buyer pays the state duty and mandatory state pension insurance fee, and the seller pays personal income tax and military service. All payments are confirmed by receipts, which must be kept as proof of fulfillment of tax obligations.
Legal consequences of non-payment of taxes and fees
Failure to fulfill tax obligations when selling real estate can lead to serious legal consequences. Tax authorities can apply penalties and charge a penalty for each day of late payment of taxes. In case of significant violations, a criminal case may be initiated for tax evasion.
To avoid negative consequences, it is important to fulfill all tax obligations in a timely manner and keep receipts for the payment of taxes and fees. A lawyer's legal opinion will help assess all possible risks and avoid violations of the law.
The importance of legal support
Obtaining professional legal support is key to successfully completing a real estate transaction. Consulting a lawyer will allow you to get detailed information about tax obligations, help you draw up a sales contract correctly and complete all the necessary formalities.
A lawyer's written consultation can become an official document that confirms the legality of your actions and provides protection in case of disputed issues. The help of a lawyer online will provide prompt support at all stages of the real estate sale process.
Conclusions
The sale of real estate is accompanied by the payment of taxes and fees, which must be taken into account to avoid legal consequences. The main taxes are personal income tax and military levy, which are paid by the seller. The buyer is obliged to pay the state duty and the mandatory state pension insurance fee.
The procedure for payment of taxes and fees includes the appraisal of the property, the conclusion of the contract of sale and the payment of all necessary payments. Obtaining a lawyer's consultation, written consultation and online assistance from a lawyer will ensure proper legal support at all stages of the real estate sale process, help avoid violations of the law and ensure the protection of your rights and interests.
