Firstly, the scope for exemption from capital gains tax on the sale of a main residence has been expanded. Previously, two conditions had to be met simultaneously: owning the property for at least three years and actually residing in it for the three years immediately preceding the sale.
Now, it is sufficient to meet just one of these conditions. Namely: to have been registered as resident at that property for at least three years. Alternatively, the property must be registered in the Property Register as the only such property you own.
Finance Minister Viktoria Belous explains that this is because sometimes a person sells their only home but is unable to claim the tax relief simply because, by mistake, they were not officially registered at that address.
Secondly, it will be possible to deduct renovation costs when calculating tax. The key condition is that you must have valid invoices, tax receipts or official contracts with contractors.
Furthermore, the general tax regime for secondary homes has changed. Previously, only half of the capital gain was subject to tax (12 per cent). From 2027, the 50 per cent relief has been abolished: the 12 per cent tax will now be calculated on the full amount of the capital gain.
Tags: property taxation.
This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.
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