Procedure for Selling an Apartment in Ukraine by a Non-Resident

The sale of an apartment by a foreigner in Ukraine is a process that has its specificities, especially in terms of legal formalities, taxation, and foreign exchange operations. Ukrainian legislation allows foreign citizens to freely dispose of acquired real estate. However, factors such as unfamiliarity with Ukrainian legislation, differences in procedures, language barriers, and risks of fraud in the real estate market can create significant complications and lead to substantial financial losses.

This is why, for a successful sale of an apartment, house, or other real estate, it is important to take into account all legal nuances and secure the support of a qualified lawyer. In this article, we will explore the key aspects related to the sale of real estate by a non-resident and provide practical advice on how to avoid potential difficulties.

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Stages of Selling an Apartment by a Foreigner in Ukraine

Before starting the sale, it is crucial to conduct a preliminary legal review of the documents. This will help identify potential legal issues or documentation flaws that may arise during the sale process. Such a review will significantly streamline the process and help avoid any complications in the future.

Thus, the process of selling an apartment by a foreigner in Ukraine consists of the following stages:

1. Finding a Buyer. Foreign property owners in Ukraine often turn to real estate agencies to find buyers quickly and reach a favorable agreement. Agencies help create quality listings, post them on popular online platforms, and other marketplaces. Realtors also organize property viewings for potential buyers. Once an interested party is found, the agency moves on to the next step—preparing for the transaction.
2. Opening a Bank Account. To receive funds from the sale of property, the foreign seller must open a bank account in Ukraine. This is because payments are made exclusively in Ukrainian hryvnia, even if the contract specifies an equivalent amount in foreign currency. Such an account ensures control and transparency of financial transactions.
3. Preparing Documents for the Agreement. Since the documents are signed in Ukrainian and the sales contract contains important legal details, the foreign seller will need assistance from a qualified translator. The translator ensures the accuracy of understanding the terms of the deal and accompanies the procedure of notarizing documents.
4. Signing the Main Sales Agreement. The sales agreement is concluded in the presence of a notary. The buyer transfers the agreed-upon amount to the seller’s bank account, after which the notary updates the information in the State Register of Property Rights. This completes the transfer of ownership of the property.

Each stage requires careful adherence to Ukrainian legislation and the involvement of qualified professionals, which will help the foreign seller avoid potential difficulties and successfully complete the sale.

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Documents Required for Foreigners When Selling Property in Ukraine

Selling property by a foreigner in Ukraine requires the preparation of a set of documents. The exact list may vary depending on the specific situation. The necessary documents include:

1. Proof of ownership. This could be a sales agreement, gift deed, inheritance certificate, or any other title document that has been registered in the State Register of Property Rights. In case the original document is lost, a duplicate must be obtained.

2. Technical passport. If the original technical passport is lost, damaged, or no longer matches the actual state of the property (e.g., after renovations), a new one must be ordered from the authority responsible for technical inventory (Bureau of Technical Inventory - BTI).

3. Debt clearance certificates. To proceed with the sale of property, the seller must obtain certificates confirming there is no outstanding debt for the following utility services:

• Electricity
• Water supply and drainage
• Gas supply (if applicable)
• Heating (if applicable)
• Waste disposal
• Apartment management fees (home maintenance)

Certificates can be obtained from the relevant municipal services or HOA (Homeowners' Association). It is important to note that certificates have a limited validity period (usually 10–30 days), so they should be obtained immediately before the agreement.

4. Expert appraisal report of the property, determining the market value of the property. The expert appraisal is necessary to determine the market value of the property for taxation purposes and to agree on the price with the buyer. The appraisal must be conducted by a certified appraiser registered in the State Register of Appraisers. The report also has a limited validity period (usually 6 months).

5. Personal documents of the foreigner.

• Passport and its notarized translation.
• Tax Identification Number (TIN) issued in Ukraine.
• Marriage certificate and consent of the second spouse, notarized (if applicable).

All documents issued abroad must be translated into Ukrainian and notarized.

Please note! It is recommended to obtain all certificates and the appraisal report immediately before visiting the notary to conclude the transaction. This will help avoid additional costs, as obtaining the certificate or report too early will require the foreigner to obtain them again, resulting in extra time and financial expenses. This is especially relevant for those who are abroad and must travel to Ukraine specifically to arrange the documents.

The lawyer can coordinate this process, including doing it remotely, and ensure that all documents are valid at the time of the agreement. Our lawyer will also assist with the document legalization procedure (apostille/consular legalization).

Taxes for Foreigners on Real Estate Sales

The sale of real estate by a non-resident in Ukraine is subject to taxation, the amount and procedure of which are regulated by the Tax Code of Ukraine.

When selling real estate in Ukraine, a non-resident is required to pay the following taxes:

1. Personal Income Tax (PIT) – 18%. PIT is levied on the income received from the sale. The income is calculated as the difference between the sale price and the documented expenses incurred in acquiring the property.

For example, if you purchased an apartment for ,000 and sold it for ,000, PIT will be charged on the ,000 profit. It is important to keep all documents confirming the expenses related to the acquisition (contract, receipts, bank statements), as this can reduce the taxable amount.

If the property has been owned for more than three years and this is the first sale in the reporting year, the income from the sale of such real estate is not subject to tax.

2. Military Tax – 5%. It is levied on the same amount as PIT.

It should be noted that the buyer, when finalizing the transaction, pays a 1% state pension fee based on the value of the real estate. This is not your tax, but it is important to be aware of this payment.

Before concluding the agreement, it is important to carefully review all tax-related matters, particularly the existence of current agreements between countries. Each situation is unique, and legal support will help take into account all the details and avoid risks related to violations of tax legislation.

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How to Transfer Money to Your Account Abroad After Selling Property in Ukraine?

After selling real estate in Ukraine, a foreigner has the right to dispose of the funds received as they wish, including transferring them to their foreign bank account. However, this process is regulated by Ukraine's currency legislation and requires consideration of various legal, banking, and tax aspects.

Key Aspects of Transferring Funds

1. You can transfer money to a foreign account, but it is important to consider: the bank’s commission, the bank servicing your account in Ukraine, and foreign exchange control requirements.

2. For a successful transfer, you will typically need: a passport, an identification number (TIN) issued in Ukraine, and the sale and purchase agreement for the real estate, which confirms the origin of the funds.

3. It is important to account for financial monitoring. The bank in Ukraine must verify the legality of the funds’ origin. Typically, you will need to:

• Confirm the source of the funds (real estate sale agreement).
• In some cases, provide documents confirming the source of the funds at the time of purchasing the sold property (for example, the purchase agreement or bank transfers used for payment).

Please note! In Ukraine, there are certain limits on transferring funds abroad by individuals. Up-to-date information on these limits can be found on the website of the National Bank of Ukraine (NBU) or obtained directly from the bank.

Each situation of real estate sale and fund transfer is unique, so the process may have its specific details. Preparation and consultation with specialists will help avoid misunderstandings and ensure the successful completion of the transaction.

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Full Legal Support for Real Estate Sales: How We Can Help

Selling real estate as a non-resident is a complex process, accompanied by numerous legal and bureaucratic nuances. We understand these challenges and offer a full range of legal services to make the sales process as simple, safe, and profitable as possible for you.

What we offer

•  Comprehensive Legal Document Review. We will conduct a thorough review of all documents related to your property. This includes analyzing ownership documents, preparing and assisting with technical passports and property appraisals to avoid any legal complications.
•  Transaction Support. Our specialists will ensure the opening of a bank account, review of the sales agreement, and provide complete support when interacting with a notary, so you can be confident in the legal integrity of the transaction.
• Tax Consultations. Our lawyers will provide guidance on optimizing tax payments and fees, allowing you to significantly reduce your tax expenses when selling property.
•  Assistance with Financial Monitoring. We will support all financial transactions, including transferring funds to your account, ensuring that you successfully complete all necessary stages of financial monitoring.

We don’t just provide real estate legal services, we become your trusted partner and representative of your interests in Ukraine. Don’t risk your investments, reach out to us for professional legal support throughout your agreement!