A number of changes in the taxation of residential apartment sales will come into effect on 1.1.18:
Elimination of the limit on the number of apartments that may be sold with a reduced linear capital gains tax rate – as of 1.1.18, an unlimited number of residential apartments may be sold under a reduced linear tax rate (subject to the income tax exposure).
(This is in contrast to the tax provisions in effect from 1.1.14 through 31.12.17, during which time the number of apartment sales was limited to two apartments, as well as contingent upon at least four years having elapsed since the previous apartment was sold under an exemption from capital gains tax).
The reduced linear tax rate is 25%, and it is imposed on the relative portion of the capital gain in respect of the apartment being sold as of 1.1.14 and until the date of the sale (so that the relative portion of the capital gain that predated 1.1.14 is not taxed).
Sale of a portion of an apartment – as of 1.1.18, a portion of an apartment may also be sold under a reduced linear tax rate.
Sale of an apartment between relatives – as of 1.1.18, an apartment may also be sold to relatives under a reduced linear tax rate.
Cooling-off period – as of 1.1.18, an apartment that was received as a gift may be sold at a reduced linear tax rate without any cooling-off period.
Verifying that the apartment is the only property for the purpose of receiving an exemption upon its sale – as of 1.1.18, verification of whether the apartment is the only property will be performed will be performed only on the date of sale. (Previously, verification applied to two dates: the date of sale and 1.1.14).