Accounting and tax optimisation for construction businesses and developers
We will offer several options for legal tax optimization for your construction business. We will implement the chosen strategy and set up accounting, reporting and all legal processes. If necessary, we will provide comprehensive accounting and legal support
Qualified accountants and lawyers for maximum protection of your business
We understand the real estate market – we work for developers and investors
We offer legal optimization, not tax evasion schemes
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We will offer you a profitable and convenient organization of the construction business of your choice
Cooperative
- around 0% taxes if properly administered
- best suited for building cottages and townhouses
- not suitable for non-residential real estate
LLC
- total tax burden can be as low as 5% of the sale amount
- clear for buyers scheme of purchasing an object
- low tax risks and high level of scalability
LLC
- taxes from 0% (!) to 6%
- suitable for finished real estate without formed expenses
- limit on total income for the year (no more than 1,167 min. salary)
CIF
- possibility of using derivatives with a reduced tax rate
- suitable for large-scale developers
- has a complex organizational part
What you will get by entrusting tax optimization
Safe and practical solutions
We do not offer theoretical schemes. When creating a strategy, we are guided by knowledge of tax legislation and current judicial practice. You will receive an effective solution taking into account all hidden risks.
Saving money
For this task, you do not need to stay on the staff of specialists. We will help not only to choose the right optimization scheme, but also to implement it and solve other tax issues.
Only relevant information
Tax legislation and case law often change. And tax authorities issue radically different explanations on the same issues. But we keep our finger on the pulse and will help you quickly adapt your business to current changes.
There is experience and expertise in various issues in the real estate sector
Get an effective tax optimization strategy for your business
Leave a request or write directly to the messenger – find out how we can help you
How we work
Acquaintance
Initial consultation
Agreement
Writing Strategy
Final consultation
Implementation of strategy
Accompaniment
We will take care of your business’s accounting, tax and legal issues
Cost of services for tax optimization of your construction business
consultation
in 30 minutes of consultation we will be able to collect the necessary information and select several options for structuring your business
strategy
we will form a detailed step-by-step plan of activities, register the necessary structures and develop documents
accompaniment
(monthly)
we will take care of all formal processes, accounting, reports, tax calculation, document and agreement processing
– state assembly
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Let’s discuss cooperation?
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Yes, of course, it is possible. But:
according to the current tax legislation, if an individual sells real estate during the year that they have owned for less than 3 years (and this is not an inheritance), then the taxation will be as follows:
◾ Personal income tax 5% + VZ 5% (from the entire amount of income from the sale of the first property)
◾ Personal income tax 18% + VZ 5% from the second and subsequent properties for the year (from the amount of profit).
That is, starting with the second and subsequent properties, the tax base can be reduced by documented expenses for the acquisition or construction of these properties.
You need to understand how exactly these properties were acquired by an individual in order to assess the possibility of reducing the tax base.
Yes, it can. However, it is worthwhile to analyze the situation more carefully so that the tax authorities do not see an individual discount for a particular buyer. Otherwise, there is a risk of additional taxes (additional benefit for an individual buyer — personal income tax 18% + military tax 5%). These taxes should have been calculated and withheld by the LLC-seller. Therefore, this possible risk needs to be analyzed.
Yes, it can. However, the total income of the LLC during the year must not exceed UAH 9,336,000 (1167 min. salary for 2025, subparagraph 3 of paragraph 291.4 of the Tax Code). If the LLC’s income received during the year exceeds this amount, then the single tax will have to be paid in double the amount of the excess. That is, you will have to pay a single tax of 6% if you had a rate of 3% with VAT, or pay 10% if you had a rate of 5% without VAT (subparagraph 1 of paragraph 293.5 of the Tax Code), as well as a military tax of 1%.
It will also be necessary to switch to paying income tax by filing an application no later than the 20th day of the month following the calendar quarter in which the excess income was allowed. In addition, if the limit of UAH 9,336,000 is exceeded, VAT of 20% of the value of the property sold is charged on the income received from the sale.
If we imagine that one object will cost UAH 1,000,000 and the LLC will sell it at the actual price, then the specified limit will be enough for only 9 objects.
Yes, of course you can. Moreover, if the work is organized correctly, the tax burden in this case can be 0%! When creating a cooperative, members can contribute their land plots to the cooperative as an entry fee (of course, these contributions are not taxed, clause 165.1.44 of the Tax Code of Ukraine).
At the same time, they assess the cost of their contributions at their own discretion. Then the housing cooperative, attracting contractors, builds cottages, and by attracting new members receives financing (and again, contributions from new members are not taxed).
After the sale of the cottage, the member who contributed a land plot to the housing cooperative can leave the housing cooperative and take his share in cash in exchange. If this participant valued his land when contributing to the housing cooperative at a conditional UAH 2 million (nothing prevents him from doing so), and when leaving the housing cooperative he took back his UAH 2 million (received by the housing cooperative from the sale of the cottage), then no income arose, and therefore no taxation either.
If the cooperative is properly organized, there will be no VAT.
Housing supply transactions are exempt from VAT, except for the first supply (clause 197.1.14. Tax Code). The first supply is the supply of services from the contractor for the construction of the relevant facility in favor of the housing cooperative. from 02.09.2024, as well as the court decision on the case No. 813/7150/14). In this regard, it is possible to carry out the activities of the housing cooperative without paying VAT and without registering as a VAT payer.
But for this, it is necessary to officially formalize the legal relationship of the cooperative with the contractor, which will carry out construction work and confirm all operations related to the involvement of the contractor with the necessary documents.