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How Can A Foreigner Buy Real Estate In Ukraine?

Buying real estate is an investment of your money. Therefore, you should weigh all the pros and cons before making the decision, and work out the algorithm of your actions in detail. This is the only way to avoid unnecessary expenses of your money and time.

Our company is often contacted by citizens of other countries inquiring about whether non-residents have the same rights when buying real estate as citizens of Ukraine.

Today we will talk about real estate objects that are worth your attention, as well as about the procedure for buying real estate in Ukraine for a foreigner.

What kind of real estate should a foreigner buy in Ukraine?

Unfortunately, the real estate market is one of the most saturated with fraudulent schemes and unfair real estate developers, sellers and the like. Every year you can see at least a few new buildings that have moved into the group of “unfinished” or “frozen construction” for various reasons.

Our firm provides legal advice on real estate, as we have considerable experience in various cases in the field of real estate, and therefore we can advise a particular developer, or check the reliability of documents of the secondary market apartment.

As a standard, the real estate market is divided into primary and secondary markets.

The primary market consists of real estate that have never been in someone else’s property. Accordingly, it includes new buildings that have already been commissioned, as well as unfinished structures that are about to be commissioned and even construction projects.

Advantages of buying real estate on the primary market:

  • Relatively low price per square meter (especially at zero construction cycle);
  • The possibility to choose the layout of the apartment;
  • The possibility to buy a ready-made apartment and immediately rent it out, etc.

The main disadvantages of buying real estate on the primary market:

  • Future repair costs (if required), and practice shows that it is extremely difficult to predict the exact amount of expenses;
  • A risk of slippage;
  • The possibility of falling among dishonest firms, which will lead to the loss of all the funds invested in the construction;
  • Paying for real estate in Ukraine in a new building requires a foreigner to open a special investment account, which is a quite complicated procedure.

Related article: Purchasing Apartment In A New Building: How To Assure Oneself Of Reliability Of The Real Estate Developer?

The secondary real estate market is an alternative option for those who want to get an apartment at their disposal as soon as possible.

This is the key advantage of buying real estate on the secondary market: this way you will get the property into your ownership as soon as possible and if it is in good condition you will be able to use the property immediately.

On the other hand, if you want to rent out the apartment in the future, it is worth knowing in which district of the city the rent is higher and where it is easier to rent out the apartment.

Besides, according to the tax legislation of Ukraine, in order to rent out the purchased premises in Ukraine, a foreigner shall find a “tax agent” who will pay tax for it. As a rule, these are specialized LLCs, which offer appropriate services in Ukraine.

It will be easier to transfer funds for an apartment on the secondary market than for real estate in a new building. It is enough to open a bank account in Ukrainian bank in the local currency UAH.

As for the disadvantages  of the secondary real estate market, the premises that are sold in the secondary market may have a complex and confusing history, be pledged or have other restrictions, which the seller may conceal from you.

Studying the history of the property, eliminating any legal shortcomings and further preparation of documents for a safe transaction between the seller and the buyer is a task that should be entrusted to real estate lawyers. Protect your money and spend it wisely.

Related article: How To Check A Real Estate Developer: What Do You Need To Know When Buying An Apartment?

What documents does a foreigner need to buy an apartment in Ukraine?

The main question that a foreigner wishing to buy an apartment in Ukraine is faced with is how to transfer money for it.

It’s worth remembering that according to the Ukrainian legislation, you can only pay for the purchase of real estate by bank transfer of the total real estate value.

In this view, a foreigner needs to open a bank account in Ukraine. To do this, they need to obtain a tax identification number.

As mentioned above, in case of buying real estate on the secondary market, it is enough to open a regular bank account, while in case of buying an apartment on the primary market, a foreigner needs to open an investment account.

For the real estate purchase process you will also need a notarized  translation of the foreigner’s passport.

As with any process, there may also be many questions and nuances arising from the real estate transaction. Can a foreigner whose period of stay has already expired buy an apartment in Ukraine? Does a foreigner need additional certificates from the bank in his/her country of residence? What other documents may be required by the seller?

We can answer to all these and other your questions.

Our real estate lawyers will help you buy reliable real estate in Ukraine even without your presence.

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