Are there any restrictions on selling property in Ukraine as a foreigner?
Ukraine's rich history, diverse culture, and economic potential have made it an increasingly attractive destination for foreigners seeking real estate opportunities. Whether you're an expatriate living in Ukraine or an international investor, you may be wondering about the regulations and procedures for selling property in this Eastern European nation. This article will explore the key aspects of selling property in Ukraine as a foreigner, including any restrictions, necessary documentation, and taxes.
Related article: How to sell an apartment in Ukraine: issues of money transfers and recovery of lost documents
Can Foreigners Freely Sell an Apartment in Ukraine?
Foreigners are indeed permitted to sell real estate in Ukraine. The Ukrainian government has taken steps to encourage foreign investment in the property market, making it relatively straightforward for non-residents to buy and sell properties. However, while foreigners can sell their property in Ukraine, there are some legal requirements and documentation that must be in place.
But, if you decide to sell an apartment and need the help of experienced specialists, our lawyers will help you, even in the case of remote sale of real estate in Ukraine.
Related article: What are the common property scams or frauds in Ukraine, and how can I avoid them?
What Documents are Required to Sell Real Estate as a Foreigner in Ukraine?
- Title Deed: The first and foremost document required for any property transaction is the title deed. This document proves ownership and must be in the seller's name. If you are selling the property on behalf of someone else, a power of attorney is necessary.
- Notarized Sale Agreement: A notarized sale agreement must be prepared, outlining the terms and conditions of the sale. Both the buyer and the seller should be present before a notary to sign this document.
- Passport and Tax Identification Number: Both parties (the seller and the buyer) must provide their passports and tax identification numbers (TINs) to ensure that the transaction is legally valid.
- Proof of Ownership Rights: Documentation proving the seller's right to own the property, such as a Certificate of Ownership, should be provided.
- Encumbrance Certificate: This document, obtainable from the State Register of Real Property Rights, serves as proof that the property is free of any liens, debts, or legal disputes.
If you have a wife/husband, you will need a written statement from him - it will also be certified by a notary at the time of the transaction. You will also need a TIN, but you should already have it at the time of purchasing the apartment. If you need a duplicate, our lawyers will help you get it before the transaction.
If you do not know the Ukrainian language, a certified translator must be present at the notary’s transaction, and the agreement itself must be written in two languages (Ukrainian and yours). All this can be easily organized by our company.
Related article: Are there restrictions on foreign ownership of agricultural land in Ukraine?
Taxes When Selling an Apartment in Ukraine
When selling an apartment in Ukraine, both the seller and the buyer are responsible for certain taxes and fees. It's crucial to understand these costs to avoid any surprises during the transaction.
- Income Tax: The seller of the property is subject to a 5% income tax on the property's sale price. This tax should be paid to the Ukrainian government within ten days of the transaction.
- Notary Fees: The notary fees for drafting and notarizing the sale agreement are typically paid by the buyer. These fees may vary but are usually a small percentage of the property's sale price.
- State Duty: A state duty, which is a fixed fee, is also paid by the buyer when registering the property transfer with the State Registrar. The amount may vary depending on the property's value.
- Legal Fees: Engaging a legal advisor or attorney can be beneficial to navigate the complexities of the transaction. Legal fees are typically paid by the party who hires the attorney.
The cost of a lawyer for real estate transactions is here.
Contact our specialists for advice and assistance in selling real estate. We will help not only organize the entire procedure, but also safely withdraw money to your foreign accounts.
