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

Views: 2017

Buying and selling real estate in Ukraine can be a complex and challenging process, especially for foreigners during the ongoing war. The war has had a significant impact on the country's real estate market, with many uncertainties and risks involved.

However, for those who are willing to take the risk, Ukraine presents a unique opportunity to invest in a growing market at a relatively low cost. Here are some essential tips for foreigners looking to buy or sell real estate in Ukraine during the war:

1. Choose the right location

Location is crucial when buying real estate in Ukraine. It is essential to do your research and choose a safe and stable location. The war has affected some areas more than others, and it is crucial to understand the situation on the ground before making any investment decisions.

2. Hire a local real estate agent

It is highly recommended to hire a local real estate agent who is familiar with the local market and can help you navigate the legal and bureaucratic processes. A local agent can also provide valuable insights into the current market conditions and the best areas to invest in.

3. Understand the legal requirements

Foreigners looking to buy real estate in Ukraine must be aware of the legal requirements and procedures involved. It is essential to work with a lawyer who is knowledgeable about the local laws and can help you navigate the legal process.

4. Be prepared for bureaucracy

Buying and selling real estate in Ukraine can be a bureaucratic process, and it is essential to be prepared for delays and bureaucracy. It is essential to have all the necessary documents in order and to be patient throughout the process.

5. Consider the risks

Investing in real estate in Ukraine during the war carries significant risks, and it is crucial to be aware of them. The war has had a significant impact on the country's economy, and the value of real estate can fluctuate significantly. It is important to conduct a thorough risk assessment before investing.

6. Consider alternative financing options.

If you are a foreigner looking to buy property in Ukraine, you may face significant challenges obtaining financing from local banks. Instead, consider alternative financing options such as private lenders or crowdfunding platforms, which can provide access to capital without the strict requirements of traditional banks.

7. Do your due diligence.

Before buying or selling property in Ukraine, it is important to do your due diligence and thoroughly research the property and its ownership history. This can help you avoid scams or disputes over ownership down the road.

Despite the challenges, buying and selling real estate in Ukraine during the war can present unique opportunities for foreign investors. With the right research, preparation, and guidance, investors can navigate the complex market and make successful investments.

Related article: I want to buy a property in Ukraine and rent it out: Where to start?

Terms and procedure of buying or selling the real estate in Ukraine during war


Terms of Buying Real Estate in Ukraine

  1. Reservation Agreement: The reservation agreement is signed by the buyer and the seller, and it states the intention to purchase the property. The buyer pays a deposit to secure the property, which is usually around 10% of the purchase price.
  2. Sale and Purchase Agreement: This is a legally binding agreement between the buyer and the seller, which outlines the terms and conditions of the sale, including the purchase price, payment schedule, and transfer of ownership.
  3. Transfer of Ownership: After the sale and purchase agreement is signed, the buyer and seller must complete the transfer of ownership process. This involves obtaining all the necessary documents and permits, paying any outstanding taxes or fees, and registering the property with the relevant authorities.

Procedure of Buying or Selling Real Estate in Ukraine

  1. Find a property: The first step in buying or selling real estate in Ukraine is to find a suitable property. It is recommended to work with a local real estate agent who can help you find properties that meet your requirements.
  2. Negotiate the terms: Once you have found a suitable property, the next step is to negotiate the terms of the sale. This includes the purchase price, payment schedule, and any other conditions of the sale.
  3. Sign the agreement: After the terms have been agreed upon, both the buyer and seller sign the sale and purchase agreement.
  4. Payment: The buyer must pay the agreed-upon deposit to secure the property, and the seller must provide all the necessary documents and permits.
  5. Transfer of ownership: After the payment has been made, the transfer of ownership process begins. This involves obtaining all the necessary documents and permits, paying any outstanding taxes or fees, and registering the property with the relevant authorities.
  6. Completion: Once the transfer of ownership is complete, the buyer takes possession of the property, and the sale is complete.

It is important to note that buying or selling real estate in Ukraine during the war can be a complex and challenging process, and it is essential to work with a local real estate agent and lawyer who is knowledgeable about the local laws and regulations.

Related article: How to sell an apartment in Ukraine: issues of money transfers and recovery of lost documents

Taxes for foreigners from operations with real estate in Ukraine

  1. Property Tax: Property tax in Ukraine is paid annually and is based on the value of the property. The tax rate varies depending on the location and type of property. Foreigners who own property in Ukraine are subject to property tax.
  2. Income Tax: When a foreigner sells property in Ukraine, they are subject to income tax on the profit they make from the sale. The tax rate for non-residents is 18% of the profit, and it is usually withheld by the buyer at the time of the sale.
  3. Value Added Tax (VAT): VAT is a tax that is applied to the sale of new buildings in Ukraine. The VAT rate is 20%, but it may be reduced for certain types of properties. Foreigners who purchase new properties in Ukraine are subject to VAT.
  4. Notary Fees: Notary fees are charged for the transfer of ownership and the registration of the property in Ukraine. The fees are typically based on the value of the property and are paid by the buyer.

How to pay for the real estate or withdraw the money from selling real estate during the war?

  1. Bank Transfer: The most common method of payment for real estate in Ukraine is by bank transfer. This involves transferring the funds from the buyer's bank account to the seller's bank account. It is recommended to use a reputable bank and to confirm all details of the transaction before making the transfer.
  2. Cash Payment: Cash payment for real estate is not recommended in Ukraine as it is not a safe or secure method of payment. However, if the buyer and seller agree to use cash, it is recommended to use a reputable currency exchange service to avoid counterfeit currency.
  3. Escrow: An escrow account is a third-party account that holds the funds for the transaction until all conditions of the sale are met. This provides a secure and safe way to transfer funds for both the buyer and the seller.
  4. Withdrawal of Funds: When selling real estate in Ukraine, the seller can withdraw the funds from the sale by transferring the money to their bank account or by using a currency exchange service. It is recommended to use a reputable and secure method to ensure the safety of the funds.

Important! Today, funds from Ukraine can also be withdrawn using cryptocurrency, including from the sale of real estate.

It is important to note that currency exchange rates can fluctuate in Ukraine, and it is recommended to use a reputable currency exchange service to avoid any fraudulent activity. Additionally, it is important to ensure that all necessary taxes and fees are paid before withdrawing the funds from the sale.

Our company accompanies you all the way to the sale or purchase of real estate. Starting from working with a realtor (we can advise a trusted specialist), checking real estate, and ending with the control of payment for the purchase or sale of real estate.

If you want to make a deal with real estate in Ukraine, and do it safely for you in difficult conditions of hostilities - please contact us.

The cost of property verification is here.

The cost of supporting a deal for the sale or purchase of real estate is here.


Views: 2017

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