The change in net

From January 1 In 2020, additional conditions were introduced for applying the term of home ownership to remove tax obligations in the event of a sale.

Recall that in 2015, the period of exemption from personal income tax for housing sales was increased from 3 to 5 years. The minimum term is maintained for situations where ownership was obtained: during privatisation; under a lifetime maintenance or gift agreement; in order of inheritance from relatives. 

close relatives in this case include spouses, parents, children, grandchildren, grandparents, siblings and half-siblings.

Since 2020, this list includes the only housing. The innovation will apply even if the second home is purchased within 90 days before the sale of the former property, which was considered the only one.

In other words, if you purchase an apartment and then sell the property obtained through privatization within three months, under a gift agreement or lifetime maintenance, the sales tax is not charged.

If the taxpayer owns several real estate items, the period of ownership for personal income tax exemption will be 5 years, as before. If at the time of registration of the sale in the usrn, it is found that the person has at least a share in another apartment, the tax will have to be paid.

Even if you have already owned an apartment for three years, which you got through privatization, under a gift agreement or lifetime maintenance. If the taxpayer is legally married, the housing must also be the only one for his/her spouse.

Based on the innovations, the following conclusions can be drawn. You can sell a property after three years of ownership without paying tax if the premises: Purchased before January 1, 2016 Transferred to personal property under a lifetime maintenance agreement. Received as a result of privatization.Received under a contract of inheritance or gift from relatives. the housing that is being sold is the only One for the taxpayer and his/her spouse. housing is not the only one, but other real estate was purchased and issued no earlier than 90 days before the sale.

This innovation applies to any type of residential real estate: apartments, private houses, rooms in dormitories and communal apartments, land plots with buildings.

To sell or buy a home with the maximum benefit and minimal risks, ask for help from experienced realtors who are aware of all the innovations in the legislation.