The cost of re-registering a residential property is an important issue that should be studied even at the stage of selling or buying an apartment. Here, you need to know all the nuances, so as not to overpay and do everything legally. What is included in the cost of re-registering an apartment and the amount of taxes and state fees in 2023, we tell you below.
What are the taxes when selling an apartment
When selling residential real estate, the seller must pay personal income tax. The amount of this tax and the need to pay it depends on several factors:
- the number of purchase and sale transactions conducted during the reporting period;
- whether there is a status of a tax resident of Ukraine;
- the tenure of the property;
- how the apartment came into possession.
If the seller is a resident of Ukraine and sells a second apartment during the reporting period, he must pay tax on personal income at the rate of 5% of the official transaction amount. That is, if the apartment is sold for $50,000, the tax will be $2,500.
If the home is owned for less than 3 years, you also have to pay a tax of 5%. Non-resident of Ukraine in this case pays 18%.
If in the reporting year is sold for the third, fourth and subsequent object of real estate, the rate of personal income tax is no longer 5%, but 18%.
When you do not have to pay income tax:
- if the seller concludes the first transaction for the sale of the apartment in the reporting year;
- if the property has been owned for more than 3 years;
- if the object was inherited by the seller.
Taxes on the sale of an apartment are paid by both the seller and the buyer. Here are the taxes you still have to pay on the sale and purchase of real estate:
- state duty - 1% of the property value (general payment). Disabled veterans, relatives of the deceased and missing, disabled persons of I and II groups, and victims of the Chernobyl disaster are exempt from payment;
- military fee - 1.5% (paid by the seller);
- 1% - fee to the Pension Fund (paid by the buyer). Those who are on the apartment register or are buying a home for the first time are exempt from this fee, although it is actually quite difficult to prove.
The price of re-registering an apartment also depends on whether the property is bought in a new building or on the secondary market. If the property is in a new building, the buyer can register the property himself or entrust the developer with this procedure. Specialists building company for a fee in a short time to re-register housing to the owner. In total, will have to pay about $ 100.
How much does an appraiser cost
In addition to income tax, the military levy, and the Pension Fund payment, there are associated costs such as the services of an appraiser. You should not miss this step, since the real estate appraisal report is part of the obligatory package of documents that the seller submits. Accordingly, he also pays for the costs of the appraisal of the apartment.
You can save money on these costs. Since 2021, you can get a certificate of value online for free. To do this, you need to register in the unified report database of the State Property Fund and fill out a form with the data on the apartment for sale. The service will evaluate the property and generate a certificate.
The service does not always indicate the value of the apartment, which suits the seller. If the owner does not agree with the calculated online price of the apartment, he/she can personally contact a professional appraiser. His services are relatively inexpensive and depend on the purpose of the appraisal. If the apartment is being appraised for sale, the costs start at 1,000 UAH.
How much does the notary charge for re-registering an apartment
The real estate purchase agreement is registered with a notary: he enters the transaction into the real estate registry. You will also have to pay for the services of a notary when re-registering an apartment.
In order to reduce this cost, you can go to a notary public. But it is important to be prepared for the fact that it will take considerably longer to complete the transaction than it would if you went to a private notary.
Private notaries set their own working costs, so their prices are not only higher than those of public specialists, but also vary depending on the specific expert. The cost of a private notary depends on the city of registration: in Kiev, the services of a specialist starts at 6,000 hryvnia. Before signing a document, it is worth examining the price of the issue in different places, or ask your friends, who have already contacted a notary.
Notary fees are most often split in half between the seller and the buyer. If the parties do not agree to divide this expense equally, the amount can be reflected in the value of the property. Everything happens by agreement.
Who has to pay for the re-registration of the apartment
The law does not regulate the question of who should pay the state duty and Pension Fund fee - the buyer or the seller. Most often the parties agree on the payment of the costs of re-registering the apartment on an individual basis.
Usually the state duty is paid by the buyer, while the costs of paying the Pension Fund fee and notary fees are borne by the seller. But it also happens that all the expenses of redecorating the property are borne entirely by the buyer. In this case the value of the apartment can be reduced.
In many cases, the seller and the buyer agree to split the costs strictly in half. All of this is decided at the negotiation stage, even before the sale and purchase agreement is signed.
To avoid confusing situations, overpayments and other problems with paying mandatory taxes and fees when re-registering an apartment, you should contact an experienced realtor. A qualified specialist knows the actual cost of fees, who has privileges for paying taxes, and which notary is the best to apply to. Realtors of Mayak real estate agency will help to check the documents and the correctness of calculations, as well as reduce the risks of the transaction, regardless of which party you are - the seller or the buyer.