A new law has been adopted in Ukraine!

Bill 5600 on amendments to the Tax Code of Ukraine and some legislative acts of Ukraine to ensure the balance of budgetary receipts was supported by the majority of the Verkhovna Rada deputies and submitted to the president for signature.

The essence of the new Law:

On the sale of the third and subsequent properties during the year, the following taxes will be added. Now the tax rate on the sale of real estate in Ukraine is 5% Personal income tax and 1.5% military duty.

Now the Personal Income Tax rises to 18%. But! This tax is subject to NET PROFITS FROM SALE, that is, the difference between income and the cost of acquiring such real estate. This rate will not apply to the sale of inherited property.

In fact, it will be like this:

If there is a transaction for the sale of a third or more real estate objects, at its initial value, for example, $ 50,000 (acquisition cost) and the sale of the same object, for example, $ 80,000. – your income will be $ 30,000 and with $ 30,000 you will need to pay 18% Personal Income Tax and 1.5% military duty.

If the Law is signed by the President of Ukraine, it will enter into force on January 1, 2022, thereby increasing the cost of secondary housing.

And further…..

 The issue of investors who invested money in construction, but did not receive apartments, is currently under consideration. The question is still open.

Have a nice evening everyone

The Immigration Law Office was established in 2007. It provides assistance to foreign clients in Kiev (KV), Odessa (OD), Dnipro (DP), Lviv (LV), Kharkiv (KH), Lugansk (LG) and Donetsk (DN) regions, Crimea (KR) and others regions of Ukraine.

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