Real Estate Sales in Ukraine: What Taxes Will You Have to Pay in 2025.

Buying a house or apartment is a complex process involving various legal and tax details. However, one of the key points is determining the amount of income that the notary records in the documents, which affects the amount of taxes paid. This information is specified in a special annex to the tax report, notes the State Tax Service office in the Transcarpathian region.

Determining the amount of income is a serious matter. Income is determined by the price specified in the contract, but cannot be lower than the appraised or market value of the property. The appraisal can be conducted electronically or by a professional appraiser, and the results must be registered in the database of appraisal reports. This rule is designed to protect the interests of the state and prevent tax evasion, notes tax consultant Volodymyr Lytvyn.

Tax Features for Multiple Sales

Individuals selling third and subsequent real estate objects within a year are taxed at an increased rate, except for objects received as inheritance or sold by the bank as part of foreclosure on the mortgage.

Reduction of Taxable Income

Sellers have the right to reduce the amount of income by confirmed expenses incurred for the purchase of real estate in Ukraine, such as purchase agreements, payment receipts, acceptance acts, and other documents.

Submitting Information to Tax Authorities

Every month, notaries send tax authorities information about the concluded purchase and sale agreements between individuals, which includes the price of the deal, the amount of tax paid, and details about the parties.

Seller's Obligations After the Agreement

After concluding the agreement, individuals who received income from the sale of real estate must determine the amount of income tax and pay it to the budget through a bank or another payment service. In cases where the tax is withheld from the buyer or notary, payment is made directly during the conclusion of the agreement.

When buying or selling real estate, it is important to consider tax rules to avoid potential problems with tax authorities. Notaries play a key role in determining income from purchase and sale transactions and send the necessary information to tax authorities for further processing. Therefore, it is important to comply with all tax requirements and make timely payments to the budget.