Reading time: 5 min.
Ukrainian legislation allows foreigners to buy real estate in Ukraine. This applies to both individuals and legal entities. At the same time, foreigners have certain limitations if we compare their rights in this area with the rights of Ukrainians. Therefore, it is worth knowing these limitations, because it will give an opportunity to better navigate the issue. The team of the “Prykhodko&Partners” law office regularly provides consultations and provides legal support in questions related to the purchase of real estate in Ukraine by foreign citizens. So let’s talk about some important legal aspects related to this topic.
Real estate purchase and residence permit
Thanks to the purchase of real estate in Ukraine, it is possible to issue a permanent residence permit, but it is important to know some aspects of how to actually do this. The fact is that the purchase itself is not a reason to issue a certificate. But such a reason is an investment in the Ukrainian economy of 100,000 dollars or more. In order for the purchase of real estate in the legal field of Ukraine to be considered an investment, you need to act in the following sequence:
- Register a company (legal entity) here and deposit the required amount into its bank account.
- A foreigner who wants to issue a permit must own at least 51% of the share in the management of the company.
- Carry out the necessary operation on behalf of the company and obtain an immigration permit on this basis.
Now let’s consider the restrictions on the real estate market of Ukraine for foreign citizens. This is important to understand which properties are available to you and which are not.
What restrictions are there for those who want to buy real estate?
Therefore, the following restrictions apply to foreigners:
- Lack of right to own agricultural lands. Even if a foreign citizen inherits such land, he must dispose of it within a year.
- When it comes to the acquisition of non-agricultural land by a foreigner, it must take place in the city. Outside the city limits, you can buy only the plot where the real estate object is located, which is already owned by this foreigner.
- If a foreign legal entity wants to purchase a plot of land that is in state or communal ownership, it must necessarily have its own representative office in Ukraine.
It is also important to understand that the last item from this list does not apply to legal entities registered in Ukraine. This applies even to situations where all owners of such a legal entity are foreigners.
Purchase of housing in the primary market
If you plan to buy a home in Ukraine, you need to issue an identification code at the DPS. The procedure is that you submit a notarized translation of your passport and a corresponding application. The TIN certificate is produced within 10 days. And only after that you have the opportunity to open a bank account, and then – to purchase the desired real estate.
When it comes to buying an apartment in a new building, it is usually reserved. This is worth doing in order to have time to pass the necessary checks and prepare for payment. An advance is not required at this stage. Next, a contract is concluded, and on the basis of it, a transfer is made from the bank account. As for the amount of taxes, everything depends on the legal scheme used by the developer. For example, it may be a registration fee for registration of ownership and 2% of the price of the apartment, if the preliminary and main contracts were notarized.
Buying an apartment on the secondary market
If you buy real estate on the secondary market, the seller must provide the following documents:
- documents on ownership of real estate;
- technical passport of such an object;
- a report on the assessment of its value;
- a certificate of family composition (for example, when minor children are registered in the home, the sale may become more difficult);
- a copy of the passport and certificate of personal identification number.
The team of our law office is regularly engaged in the support of such agreements, so you can turn to our legal services and be sure that all important legal aspects will be taken into account. We will answer all your questions regarding the legal aspects of the process of purchasing real estate in Ukraine, as well as provide a high-quality representative function where necessary. Fill out the form on our website and we will call you.