Landowners and homeowners often draw a line when re-registering property, focusing only on the cost of notarial services. TSN and experts revealed all the nuances of expenses and explained how to save a significant amount of money.
Lawyers emphasize that the cost of re-registration includes much more expenses than may seem at first glance.
The most important factor affecting the final cost is the method of transferring ownership. Sales, gifts, and inheritance have different tax consequences.
The appraised value of the property also plays a key role, as many mandatory payments are calculated based on it. Regional differences in notarial and appraisal fees may also affect the total cost.
Sale of real estate: taxation and benefits
When entering into a sale agreement, both parties bear the payment obligations. Sellers who have owned the property for less than three years or are re-selling within a year pay the most.
These owners are obliged to pay 5% tax on personal income and 5% military tax on the property's value. Buyers pay an additional 1% fee to the Pension Fund. Both parties also pay 1% state duty on the sum of the transaction.
However, owners who have owned the property for more than three years and sell it for the first time in a year are exempt from tax payments.
Gifting and inheriting: profitability of transactions
Transferring real estate by gifting between close relatives is the most financially advantageous. In transactions between family members, parents and children, as well as between siblings, taxes are not charged.
However, gifting to third parties or distant relatives is subject to 5% personal income tax and 1.5% military fee. The same conditions apply to inheritance from non-relatives.
Mandatory expenses: expert appraisal and notarial services
In addition to tax payments, re-registration requires payment for expert property appraisal, which costs from 1500 to 3000 hryvnias. Notarial services are priced from 3000 to 10000 hryvnias depending on the complexity of the deal.
The registration of ownership also varies in cost: standard registration starts from 300 hryvnias, while expedited procedures can exceed 15000 hryvnias.
Experts emphasize that these figures are approximate, so for an accurate calculation, it is better to consult a notary who will take into account all the specific details of the particular situation.
The authority of the procedures for re-registration of real estate and taxation when selling or transferring it can significantly impact the total costs for the owner. It is worth carefully familiarizing oneself with all aspects of these transactions and consulting with specialists to avoid unforeseen expenses.