New Military Tax: How the Tax Increase Will Affect Real Estate Transactions.

Verification of the New Military Tax

The law on the increased military tax at a rate of 5% came into force on December 1. This now applies to all real estate transactions, declared the president of AFNU Elena Haidamaka.

The military tax rate will be 5% of the value of the property if it is taxable. Haidamaka expressed optimistic hopes that the new rules would benefit buyers using state programs. However, she emphasized that it is currently difficult to predict how the real estate market will change.

Transactions involving real estate owned by individuals for less than three years, as well as agreements for new buildings and commercial real estate, will require additional costs for processing. The rules will also apply to the sale of real estate by foreigners and non-residents.

Haidamaka noted that the introduction of the new military tax presents certain complications for buyers using state programs. In such transactions, the buyer usually pays the seller's taxes. However, the change in the tax amount, which is nearly doubled, will make a significant difference.

According to the calculations of the head of AFNU, the budget could receive millions of dollars monthly from real estate transactions. If at least 10 taxable transactions are carried out daily in each region, and the property value is $50,000, the total revenue would amount to $12 million per month.