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TAXES
• Apart from 1% fee for notarization of the property purchase
agreements, sale of real estate is subject to the Pension Fund
duty at 1% rate from the contract value payable by the buyer.
• Profit from sale of immovable property by a foreign company
is subject to 15% withholding tax (WHT). In case provisions
of a relevant double tax treaty are applicable, the rate may be
different (usually, lower).
• Value added tax at the rate of 20% is applicable to proceeds
from sale or lease of real estate property, other than land,
by a company; (exemptions and exceptions exist, however
eligibility of property businesses to such exemptions and
exceptions is not customary).
• Subject to certain exceptions and reservations: (a) personal
income tax (PIT) from sale of property is 5% for Ukrainian
nationals and 15% for foreign individuals; (b) PIT regarding
rent receivables is 15%. (Note: the 15% rate applies with
regard to the amount not exceeding 10 minimal salaries (about
EUR 410); the amount in excess is subject to the 20% rate).
• Properties are subject to the property tax payable by both
companies and individuals. The rate should not exceed 1 per
cent (for non-residential properties – for year 2015) and 2 per
cent (for residential properties) of the minimal monthly salary
(currently, about EUR 41) per 1 square meter of the total area
depending on the property type and its location.
• Land payments are payable by both individuals and legal
entities either as land tax (if owned) or rent (if leased). Tax
rates depend on the estimated value, category of land and
its use regime; the maximum annual rate is 12 per cent of its
estimated value.
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Investors Guide to Europe 2015