Every year the amounts of taxes, administrative fees associated with real estate change, primarily because their amount depends on the minimum wage or the subsistence minimum.
The Tax Code establishes a real estate tax, a transport tax and a land payment.
Who is the payer of real estate tax?
There are individuals and legal entities, including non-residents, who own residential or non-residential real estate.
What exactly is taxed?
The total area of the property is subject to tax, not the living space. But for the owners of an apartment with an area of up to 60 square meters, a house – up to 120 square meters and for such objects together – up to 180 square meters are preferential conditions. That is, they do not pay such tax. For those objects that exceed the preferential area, you will only have to pay the «surplus». That is, if you own an apartment of 80 square meters, you will pay tax for only 20 square meters.
It should be noted that when the area of the apartment exceeds 300 square meters or house – 500 square meters, the tax amount increases by UAH 25,000 for each such object (this tax is also called «wealth tax»).
How can I calculate my tax rate?
First of all, this tax is paid annually for the last year. That is, for the period of 2019, we will pay the tax in 2020.
Tax rate is determined by decision of the appropriate local governmentl and can not exceed 1.5 percent of the minimum wage for 1 sq. meter. In order to calculate our rate, we need to know the minimum wage as at the beginning of the reporting year.
The minimum wage in 2019 is UAH 4 173, so the maximum tax rate per 1 sq. m. may be approximately 63 hryvnia.
Property registration fee
In order to register ownership, you need to pay an administrative fee of 0.1 subsistence minimum for able-bodied persons. This minimum is set annually in the Law of Ukraine «On the State Budget». On January 1, 2019 it was 1921 hryvnia.
If you have received, for example, a package of documents from the developer for the registration of ownership, then for such registration within a period of up to 5 working days, you will have to pay approximately 190 UAH. If such registration is to be performed in less than 5 working days, you will have to pay more.
If the state registration of ownership is the result of notarial action (if your ownership is registered on the basis of a notarized sale-purchase agreement), the administrative fee is also charged in the amount of 0.1 subsistence minimum for able-bodied persons (UAH 190). And such registration action is carried out immediately after the completion of the notarial action.