Acquisition of real estate by foreigners in Ukraine

Restrictions on the purchase of real estate by foreigners

When foreigners purchase real estate in Ukraine, they should take into account a number of restrictions and peculiarities that distinguish the procedure from the same in other countries. This is influenced by the provisions of Ukrainian civil, family, inheritance, registration and procedural laws.

Currently, foreigners in Ukraine are prohibited by law from purchasing agricultural land. However, they can purchase residential buildings and adjacent land plots.

In addition, the specifics of Ukrainian property law make it impossible to acquire properties subject to certain conditions. Such transactions may be invalidated or subject to appeal.

When acquiring real estate, the parties may be represented by proxies. Powers of attorney must be executed and notarized. If the power of attorney was issued by a foreign notary, it is necessary to apostille the document and order a translation from a Ukrainian translator with subsequent notarization.

It is important to remember:

1. Foreigners do not have the right to own agricultural land. Even in case of inheritance of such land, it must be alienated within a year.
2. Individuals have the right to own non-agricultural land within settlements. However, in order to purchase land outside of settlements, real estate owned directly by a foreigner is required.
3. Legal entities may purchase land within settlements only for commercial use. In case of purchasing land outside settlements, similarly to individuals, real estate on the land plot is required.
4. A legal entity may purchase land owned by an individual or a municipality only if the legal entity has a representative office in Ukraine.

Benefits that a foreigner receives by purchasing land in Ukraine

Foreigners who purchase land in Ukraine may enjoy a number of benefits:

1. Ukraine attracts foreign investors with its land base. This can be beneficial for those looking for opportunities in agriculture, construction or other industries.
2. Buying land in Ukraine allows foreign investors to diversify their portfolio by expanding it beyond their home country.
3. Access to agricultural products: foreigners can use the acquired land for growing crops or livestock.
4. Foreigners can make a profit from the use of the acquired land, for example, by growing crops or leasing the land to a local agricultural company.
5. The acquisition of land in Ukraine can become the basis for the development of agribusiness, which involves the cultivation of products, their processing and export.
6. Under certain conditions, foreigners who buy land in Ukraine may obtain residency status, which opens up additional opportunities for living and doing business in the country.

It is worth noting that the benefits may vary depending on specific circumstances, such as the region, purpose of the land, and other factors.

How a foreigner can buy an apartment in a new building

In the western regions, in particular in Lviv, there has been an active construction of residential complexes recently, which attracts the attention of foreign buyers who are eager to purchase apartments in new buildings. However, such a transaction has its own peculiarities, which are important to consider:

1. To purchase real estate in Ukraine, a foreigner needs to obtain an identification code. To do this, you need to submit an application and a notarized passport translation to the tax office. In ten days, the code will be ready, which will allow you to open a bank account and purchase a dwelling.
2. Usually, before buying an apartment in a new building, it is reserved for legal checks and preparation for payment. No down payment is required for this purpose.
3. After all the formalities are completed, a contract is concluded and payment is made. You can pay for the apartment by bank transfer or by depositing money into the developer’s account at the cash desk. If you import more than ten thousand euros in cash, you must declare these funds. If you pay in cash at a bank cash desk, you must show a declaration.
4. The amount of taxes and registration fees depends on the developer’s sales scheme. As a rule, it is necessary to pay an additional fee for the registration of title and a tax of 2% of the apartment value if the preliminary agreements were notarized.
5. When buying an apartment in a new building, a foreigner should assess the risks, check the documentation and reputation of the developer. It is recommended to contact a professional lawyer for assistance in this matter.

Buying an apartment by a foreigner on the secondary market

It makes sense to consider how a foreigner can purchase real estate on the secondary market.

Buying real estate on the secondary market means buying land or housing directly from the current owner. Such a transaction is concluded only through a notary. To do this, you must present your passport and identification code. If you are married, you will also need the consent of your spouse, certified by a notary, and a marriage certificate.

The seller must provide the following documents:

• Documents confirming his/her title to the property.
• Technical data sheet of the real estate property.
• Real estate appraisal report.
• Family composition certificate of the seller of the real estate.
• Copies of the passport and identification code.

The main document confirming the ownership of real estate is an Extract from the State Register. Special attention should be paid to this document, as it must bear a notary’s signature and seal.

In addition, there are other important documents, such as a certificate of title and a purchase and sale agreement or registration certificate.

Foreigners can check the title to the real estate online on the website of the Ministry of Justice. Here you can find the desired real estate property by the address or owner’s data and get a certificate from the State Register. This service is paid, but the cost is not high. Checking the ownership is recommended to protect against fraud and confirm the legality of the transaction.

Documents required for foreigners when buying and selling real estate

Foreign nationals planning to buy or sell real estate must provide certain documents:

• Valid foreign passport proving their identity.
• Passport or other identity document translated into Ukrainian and notarized in Ukraine. This may be a national identity card or other equivalent document.
• Identification code, which a foreign citizen must obtain in accordance with the laws of Ukraine in order to conduct real estate transactions.

In addition to the above documents, other documents may be required: for example, in some cases, a certificate of income or other financial documents may be required.

Real estate taxes

Foreign nationals are required to pay the same taxes for owning real estate in Ukraine as residents. For example, housing tax is levied depending on the total area of an apartment or house. No tax is levied on real estate with a floor area of up to 60 square meters for apartments, up to 120 square meters for houses and up to 180 square meters for various residential real estate. However, for larger properties, a tax rate is applied, which is currently 0.5% of the minimum salary for apartments and 1% for houses. These rates apply to properties exceeding the established size.

All of the above rules are only the main aspects that a foreigner should take into account when wishing to purchase real estate in Ukraine. However, each such transaction needs to be carefully studied and analyzed in the context of legal aspects to ensure its safety and reliability.

In addition to paying taxes and other financial aspects, other legal nuances must be taken into account, such as property rights, obligations of the developer or previous owners, possible restrictions on the use of real estate and other important documents related to the transaction.

Therefore, to feel secure and complete the purchase process successfully, a foreigner is advised to contact qualified lawyers or real estate professionals who can assess all aspects of the transaction and provide the necessary legal support.