Are there any restrictions on buying property in Ukraine?

Ukraine, with its diverse landscapes, rich culture, and emerging economy, has become an increasingly attractive destination for foreign investors looking to buy property. As the nation opens its doors to the global market, many potential investors wonder about the regulations and restrictions surrounding property ownership for foreigners. In this article, we will explore the question: Are there any restrictions on buying property in Ukraine for foreigners?

Related article: Buying and selling real estate in Ukraine for foreigners during the war

Understanding the Basics

Ukraine has undergone significant legal and economic reforms in recent years, and this includes making it more accessible for foreigners to invest in its real estate market. The most important thing to know is that there are generally no outright bans or restrictions preventing foreigners from purchasing property in Ukraine.

However, there are some important nuances and considerations to keep in mind when buying real estate in the country:

• Agricultural Land Restriction: While foreigners can buy residential and commercial properties in Ukraine with relative ease, there have been restrictions on the purchase of agricultural land by foreigners. However, these restrictions were gradually being lifted, and as of my last knowledge update in September 2021, the Ukrainian government was working on legislation to allow foreign individuals and legal entities to purchase agricultural land starting from 2024.

• Residence Permit: While there are no legal requirements for foreigners to obtain a residence permit to buy property, having one can be beneficial. A residence permit allows you to stay in Ukraine for an extended period, making it easier to manage your property and conduct transactions.

• Legal Assistance: It is highly recommended for foreigners to hire a reputable Ukrainian lawyer or real estate agent to navigate the complexities of the local real estate market. They can help ensure that all legal aspects of your property purchase are handled correctly.

• Currency Regulations: Be aware of currency exchange regulations when transferring funds to buy property. These regulations can change, so it's essential to stay up-to-date with the current rules.

• Due Diligence: Just like in any other country, it's crucial to conduct thorough due diligence before making a property purchase. Check for any encumbrances, liens, or legal issues related to the property.

While Ukraine is generally open to foreign property investors, it's essential to be aware of the specific regulations and considerations that may apply. The Ukrainian government has been making efforts to simplify the process for foreigners and create a more favorable investment environment. 

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Related article: What apartment do you need to buy to get the right to live in Ukraine?

Inheriting Real Estate in Ukraine as a Foreigner

In addition to purchasing property, foreigners may also inherit real estate in Ukraine under specific conditions. Ukrainian inheritance laws have provisions that allow foreign nationals to inherit property, but it's essential to understand the regulations and procedures involved:

• Legal Framework: Ukraine has regulations in place that allow foreigners to inherit property in the country. The inheritance process is governed by Ukrainian civil and family law.

• Recognition of Foreign Wills: Ukraine generally recognizes foreign wills, but the process can be complex. It's advisable for foreigners to consult with a Ukrainian attorney or legal expert to ensure their will is legally valid in Ukraine.

• Probate Process: In Ukraine, the process of probate (the legal validation of a will) can be lengthy and bureaucratic. Executors or beneficiaries should be prepared for potential delays and administrative requirements.

• Legal Representation: It's highly recommended for foreigners involved in an inheritance case in Ukraine to have legal representation. An experienced attorney can navigate the legal system, handle paperwork, and advocate for the rights and interests of the heirs.

• Taxation: Ukraine imposes inheritance tax on properties received through inheritance. The tax rates can vary based on the value of the property and the relationship between the deceased and the heir. It's important to consult with a tax advisor to understand the tax implications fully.

• Documentation: Heirs will need to provide various documents, including the death certificate of the deceased, a copy of the will (if applicable), and proof of their relationship to the deceased.

• Residence Status: While there are generally no restrictions on foreigners inheriting property in Ukraine, the heirs' residence status may impact the inheritance process. It is advisable to consult with legal experts to understand any potential complications.

• Due Diligence: As with any property transaction, conducting due diligence is crucial when inheriting real estate in Ukraine. It's essential to confirm the property's ownership, any encumbrances or liens, and its condition.

• Succession Planning: To simplify the inheritance process, foreigners who own property in Ukraine or are beneficiaries of Ukrainian property should consider having a clear and legally valid will in place.

We also help with cases of inheritance of real estate in Ukraine, even if the heirs are people without Ukrainian residence.