Tax burden eased on first-time real estate buyers

The Cabinet of Ministers of Ukraine at its Wednesday's meeting adopted a resolution exempting citizens purchasing flats or houses for the first time from a mandatory state pension insurance fee.

The resolution also applies to those in the queue for free accommodation by an employer, an UNIAN correspondent report.

Read alsoReal estate prices grow in Ukraine in Jan-June 2020The resolution was approved without debate.

New tax easing: details

The memo to the resolution says the state pension insurance fee shall not be paid in cases of a first-time real estate purchase. This means that the buyer never received a house as a gift, never privatized or inherited it or bought it as a share in the married couple's common property, which is confirmed by their statement and data from the State Register of Rights to Real Estate.

Those waiting in line to get free accommodation from an employer are also exempt from the said fee if their status is confirmed by a document issued by the relevant authority.

Background

The Cabinet plans to launch a new mortgage loan program in 2021, thanks to which 30,000 Ukrainian families will be able to purchase real estate.