Support for the purchase of real estate by a foreigner in Ukraine

Buying real estate involves investing one’s own funds in various objects — houses, apartments, commercial real estate, etc. The process of buying real estate on both the primary and secondary markets in Ukraine for foreigners has certain features. Specialists Prykhodko and Partners have extensive experience in the field of supporting the purchase of real estate by foreigners in Ukraine.

What should be considered when buying real estate by a foreigner?

According to the current Ukrainian legislation, both citizens of Ukraine and foreigners are given practically the same opportunities regarding the purchase of real estate. Important: they can be purchased by both private individuals — foreigners, and legal entities, that is, foreign companies.

At the same time, we note that the purchase of real estate by foreigners is accompanied by certain risks:

1. Possible non-compliance with the procedures established by Ukrainian legislation regarding the execution of purchase and sale agreements.
2. Problems related to payment for purchased commercial or non-commercial real estate.
3. Risks associated with fraudulent activities.

What are the restrictions on the purchase of real estate by foreigners in Ukraine?

Restrictions that exist for foreigners in the process of purchasing real estate in Ukraine:

• Prohibition on the purchase of land plots intended for agriculture.
• Foreign legal entities can buy land within the city limits only if there are real estate objects on this land, which are intended for conducting business activities.
• In order to purchase a plot of land that is in communal ownership, a legal entity must necessarily have its own representative office in Ukraine.

Important: the above restrictions apply to foreigners and foreign companies. If a company or firm was registered in Ukraine, it falls under the “resident” category. Thus, these restrictions do not apply to her.

What services does Prykhodko and Partners support for the purchase of real estate by a foreigner include?

To reduce the risks associated with the purchase of real estate by foreigners in Ukraine, Prykhodko and Partners specialists provide a full range of services related to the legal support of real estate transactions:

• Consulting in online and offline format on issues of buying/selling real estate.
• Legal inspection of real estate objects.
• Development and examination of the purchase agreement.
• Support in the process of payment of payments during registration, taxes, etc.

Important: communication with foreign clients can be done in English.

The actual issue is obtaining a tax payer’s registration card and making payment through the registration of an investment account in the bank. Let’s start with registration of the account card. Any foreigner who plans to buy real estate in Ukraine is required to issue an identification code, that is, a tax payer’s registration card. Its registration takes place through the bodies of the State Fiscal Service.

As for payment, today there are clear prohibitions on the use of cash by a foreigner in the purchase process. This is due to the fact that such a procedure for calculations is a gross violation of current Ukrainian legislation. Only non-cash form is used as payment for the purchase of real estate objects. That is, the payment is made from the account of a foreign individual or legal entity to an investment account opened in Ukraine. After that, funds are credited to the appropriate bank account of the owner (seller) of the real estate object. Conducting financial transactions through the opening of an investment account is a reliable and safe option for paying for the purchased real estate object.

Do you still have questions? We are waiting for a preliminary consultation! To calculate the cost of support services for the purchase of real estate by a foreigner in Ukraine, fill out the form below.