Since 2016, more and more citizens and companies are interested in real estate acquisition in Ukraine. In large Ukrainian cities, such as Kiev, Lviv, Odessa, Dnepropetrovsk, Kharkov and other customers are offered all kinds and types of real estate. Foreign companies and individuals have the right to acquire all types of immovable property in Ukraine, except agriculture land.
To buy a real property, foreign citizens need only 2 documents:
- Ukrainian tax id (is issued by tax authorities in Kiev and regional centers);
- Copy of passport translated in Ukrainian;
Foreign citizens can purchase real estate in Ukraine both for cash and using banking money transfer. To open an individual bank account only tax id and passport translated in ukrainian language are needed.
The deal for the purchase of real estate always takes place at the notary office. Signing of a contract is a must for a deal. Usually after the payment, the Notary registers the transaction and issues a document on the ownership of the property. Ukrainian law is made in such a way that it is the seller who must collect and provide for the transaction all the necessary documents for the agreement. Under Ukrainian law, all taxes are paid by the seller during immovable property purchase transaction. Tax on the purchase of real estate in Ukraine is absent. If you will buy a property in a new building, consider that you will pay value added tax (VAT). But note that VAT is always already included in the price. Construction company or developer has no right to increase the cost of immovables on a ground of VAT tax duty. Notary services and other expenses usually are paid by the parties upon agreement.
If the property is acquired for the purpose of doing business (renting, resale, location of the office of the company or doing business), it is recommended to purchase real estate through a Ukrainian company (for this you need to register a company in Ukraine). In such a way needed amount is to be transferred (from abroad) first to the authorized (or share) capital of Ukrainian company.
It is also possible to buy a real estate in Ukraine directly by non-ukrainian company. Needed documents from a company: power of attorney (if the agreement is signed by a representative), registry extract (or an extract from the register of companies); certificate of incorporation (preferably). It is not necessary to open a banking account in such case. Transaction can be transaction can be SWIFT transferred.
Legal due diligence
Acquisition of real estate in Ukraine can bear risks. So we always recommend you first to make a legal audit of the property before purchasing. During the due diligence, the following shall be checked:
- litigations for real estate;
- whether reconstruction or re-planning were carried out;
- potential property rights of third parties.
Most of this information is being checked by the Notary. But Notary is not a solicitor and its duties are basically reduced to technical and legal conclusion of the transaction.