How Can A Foreigner Buy Real Estate In Ukraine?
Buying real estate is an investment of your money, so the decision should be balanced, and the further algorithm of actions must be worked out in detail. This is the only way to avoid unnecessary expenditure of your money and time.
Our company is often contacted by citizens of other countries with the question of whether non-residents have the same rights as citizens of Ukraine when buying real estate?
Today we will talk about what kind of real estate is better to pay attention to and what are the steps to be taken to buy real estate in Ukraine.
What kind of real estate is better for a foreigner to buy in Ukraine?
Unfortunately, the real estate market is one of the most saturated with fraudulent schemes and unscrupulous developers, sellers and the like. Every year you can see at least a few new buildings that have become “under-construction” or “frozen construction” for various reasons.
Our firm provides legal services for real estate, because we have considerable experience in various cases in this area and therefore can advise this or that real estate developer or check the reliability of the documents of the secondary market apartment.
The real estate market is normally divided into a primary and a secondary market.
The primary market consists of real estate, which has never been in someone’s possession. Accordingly, this includes new buildings that have already been commissioned, as well as unfinished constructions, the construction of which should soon be completed, and even construction projects.
The main risk of buying real estate in the primary market is a situation when a person invests money in a construction project and gets nothing at the end.
Therefore, in this process, the best solution is to involve people who know how to properly assess risks and predict the situation.
For example, in our practice, there was a situation when one real estate developer in the capital, not far from Kievo-Pecherskaya Lavra, started a construction project and received all necessary permissions. However, our lawyers analyzed the situation and came to the following conclusion: despite all the documents, the construction is very close to the UN cultural heritage, which means that the risks of public discontent are very high. As a consequence, we can get a “frozen” construction site for several years. These same arguments we stated in the legal opinion of the property inspection and the Client refused to buy the apartment on our advice.
Six months later, the construction was still frozen, but the Client had already successfully invested his money in a solid project.
The secondary real estate market is an alternative option for those who want to get an apartment at their disposal as quickly as possible.
This is the main advantage of buying premises on the secondary market: You get the property faster, and if it is in good condition - you can use it immediately.
In addition, according to the tax laws of Ukraine, in order to rent the purchased property in Ukraine, a foreigner must find a “tax agent” who will pay tax for it. As a rule these are specialized LLCs, which offer the respective services in Ukraine.
It is easier to transfer money for the secondary market apartment than for the real estate in a new building. You need to open a bank account in a Ukrainian bank in Ukrainian hryvnia currency.
Related article: How To Check A Real Estate Developer: What Do You Need To Know When Buying An Apartment?
Risks and disadvantages of the secondary real estate market: Premises and apartments that are sold in the secondary market can have a complicated and confusing history, be pledged, or have other restrictions, which can be veiled by the seller.
Thus, by buying an apartment in the secondary market, you can save a little time on the purchase, but lose it on further registration. In addition, if you don’t check the property before buying in the secondary market, you can run into trouble in the form of arrests, inspections, registered tenants and other surprises.
We have also seen situations where a Client needed to check the apartment before buying it on the secondary market, and no problems were found with it. But we suggested involving us into the process of contract signing and documents check at the notary, because at that time the seller of the apartment refused to provide all the documents at once.
At the time of the transaction it turned out that the certificate of the condominium was issued by the other company, which, in fact, wasn’t the condominium association, and the seller was married, which required the consent of the wife, otherwise the transaction could be invalid.
Identification of these points before the actual transaction helped to eliminate all the problems beforehand and allowed our Client to safely buy an apartment.
What documents does a foreigner need to buy an apartment in Ukraine?
The main question that a foreigner wishing to purchase an apartment in Ukraine faces is how to transfer money for it.
It is important to remember that according to Ukrainian legislation, the purchase of real estate may be paid only by means of bank transfer of the entire amount, which leads us to the need to open an account in Ukraine for a foreigner. For this purpose, it is necessary to obtain a tax identification number.
As mentioned above, buying real estate in the secondary market requires a regular bank account, while buying an apartment in the primary market requires an investment account.
For the real estate purchase procedure, a notarized translation of the foreigner’s passport will also be required.
As in any process, there can also be a lot of questions and nuances. Is it possible to buy an apartment for a foreigner, whose legal period of stay in Ukraine is over? Will the foreigner need any additional certificates from the bank in his/her country of residence? What other documents may be required by the seller?
We can answer all these and any other questions.
Our real estate lawyers will help you to purchase reliable real estate in Ukraine even without your presence.
We are ready to help you!
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