In the process of purchasing real estate in Ukraine and particularly in Kyiv, it is important to separate "primary" and "secondary" real estate. The first means variants from developers: these are apartments in new buildings.
The "secondary market" refers to a real estate sold by the previous owners and, often, their broker representatives.
Buying property in Ukraine as a foreigner
In the process of buying real estate, almost no tax requirements apply to a foreigner. Today, this is only 1% of the contributions to the state pension fund. If the apartment has been used for less than 3 years, a Ukrainian pays 5% of income tax, and a foreigner — 18%. Income tax is not payable if the property is sold after a 3-year period.
What should a foreigner who wants to invest in Kyiv do? Buy property in Ukraine.
Documents, required from a foreigner to buy/sell real estate:
- valid passport
- translated and notarized in Ukraine translation of the international passport
- identification code
Real estate purchase procedure / contract / property registration / payment
To buy property in Ukraine is simple: in the presence of a notary, the parties sign a contract for the sale and purchase of a real estate. The usual practice when buying real estate, especially housing, also provides for the conclusion of a preliminary contract. In both cases, the notary certifies the sales contract.
The purchase and sale agreement is registered in the state register. In this case, the transfer of ownership occurs. In matters of payment, it is imperative to find a lawyer who knows the industry.
Documents required for concluding a real estate purchase and sale agreement
- A document confirming the ownership of the property;
- The seller's ID;
- Seller ID;
- Identification of the seller's spouse;
- ID-code of the spouse/spouse of the seller;
- The marriage certificate of the seller;
- The consent of the spouse of the seller (application), consent to the signing of the sales contract can be given at the stage of consent to conclude a preliminary contract. In this case, the spouse does not need to come again;
- Identity card of the buyer, for foreigners — a foreign passport, or possibly — a residence permit;
- Buyer's ID;
- buyer's marriage certificate or marriage contract;
- ID-code of the spouse/spouse of the buyer;
- Consent of the buyer's spouse (statement);
- Certificate from the Bureau of Technical Inventory, BTI (at the request of a notary);
- Certificate in form -13.
Ongoing expenses, recurring fees, taxes
A real estate tax is due only if the area of the apartment exceeds 60 m², and the area of the residential building exceeds 120 m², and it is paid annually.
The tax differs from region to region and amounts to a maximum of 1,5% of the monthly minimum wage per m² of housing space. At the moment it is about €1 per m² per year. The tax can be up to a maximum of €8,30 per property.
The tax on income from renting out housing is, as a rule, 18% of the income itself.
The organization of taxes by registering a company is also a potential option, while the amount of taxes may be reduced.
Unless otherwise agreed, payment is usually made immediately at the time of the conclusion of the contract.
Can foreigners buy property in Ukraine? It’s not a question anymore, because you’ve just read our article and have such a truthful partner in legal and accounting questions, as GT Invest.