We do provide legal advice and support during the following operations with land and real estate in Ukraine:
- general counselling;
- legal advice during property purchase and sell;
- legal assistance during lease and property management operations;
- legal accompaniment of real estate investment projects;
- legal advice during construction and technical connection to utilities;
- legal support during building commissioning process;
- real estate tax consulting;
- dispute resolution.
How to buy real estate in Ukraine?
First of all we want to inform you that foreign citizens and companies can acquire all types of immoveables, exept agriculture land. After you have found an appartment or a house that is suitable for you, it is recommended to check it or to make a legal due diligence. All needed property or construction documents shall be available and proper. If you do intend to buy an apprtment in a new house, construction company and main legal building documentation is to be checked. Also if you are acquireing an appartment in a new house, you need to check land ownership documents.
Consider also that some bad developers do make construction of apartment buildings with no documents for land at all. Investment in such constructions is absolutely not recommended as the following commissioning of construction in legally impossible. It is sad but in Kyiv you can find at least a dozen of such houses.
If the documents are proper, next step is agreement with construction company (if the property is a new one) or with the owner. An agreement with property development company can be of two kinds:
- if the appartment or a house is under construction, probably investment contract is to be signed; in such a contract is mentioned the amount of investment and terms of payment, property data (like appartment number, dimensions), term of building commissioning, and others;
- if the building i already constructed, property purchase contract shall be signed;
If you will buy an appartment or other property from construction company you will not have to pay any taxes for acquisition. All the state fees, duties and value added tax must be included in the price. Other very important thing is money transfer. You will have to open a bank account and to make a SWIFT transfer to Ukraine. Consider also that in Ukraine only national Ukrainian currency money transfer is possible. So it is needed to exchange foreign currency to UAH.
It is also possible to acquire property in Ukraine by Ukrainian company that belongs to you. It can be a solution also, because investment in share capital is free from tax. For that you will need a company registration in Ukraine.
To acquire secondary real estate property, you will have to go to the notary. As it was mentioned, before you will start transaction all the documents must be checked.
The document or the certificate for the ownership in Ukraine is called an extract from the register of real estate owners.
What are the property taxes in Ukraine?
Ukraine is almost the real estate property tax paradise. But that does not meat that we do not have real estate taxes at all. First of all you need to know is that property taxes in Ukraine are calculated from dimention of the property but not from evaluated cost. Houseowners are obliged to pay property tax one time per year in Ukraine only if the total area exceeds a certain level.
There are two types of the same property tax (this information is actual only in 2018):
|Tax||0||57 UAH per one sqare meter|
|Apartment||0-60 sqare meters||61 sqare meters and more|
|House||0-120 sqare meters||121 sqare meters and more|
Regarding the chart above, consider that if you do own a house with a total area of 200 sqare meters, you will have to pay taxes only for 80 sqare meters. The bad thing that local governments can input additional property taxes.
Real estate and construction background in Ukraine
Real estate has always been one of the bacis of economy. And one of the best businesses to invest in. In Ukraine it is a fast-growing sector. But lately construction is growing especially fast. There are few key reasons for that:
- Deregulation of process of permissions obtaining for construction. For the past 4 years Ukrainian government made a real revolution in construction approval. Now Ukraine is ranked 35 in World bank index of dealing with construction permits. When instantly it comes much easier to make some process, it will always make a property cheaper and demand higher.
- Loans. Now it is easier and cheaper to get a mortgage from a bank. Deposit rates have been falling down for the past 2 years, taking down credit rates. Today banks do have more money and are ready to offer cheaper loans on better conditions.
- Economy growth. The economy of Ukraine is has been growing since 4-th quarter 2015. Now people have more and more money to spend. Investment, manufacturing and trading in Ukraine are boosting as well.
- Cheap cost of life and immigration. Many foreigners are buying property in Ukraine with the aim to live in this country. For most of people that have never been here it seems strange. But Ukraine is very safe, calm and cheap country. It is really good to live here. Previously foreign citizens were affraid to buy
From other side past few years was not the best time to invest in Ukraine real estate property (see globalpropertyguide owerviev) because of falling prices. But in 2018 prices started to increase because of reasons that are mentioned above.
Although there are some risks for the property rights, due to not perfect legalization. But such problems you can find in any country. That is why property acquisition transactions shall be conducted with qualified solicitor.