How can foreigner sell an apartment in Ukraine?
If you're a foreigner looking to sell an apartment in Ukraine, there are a few things you should know to ensure a smooth and successful transaction.
1. Check your documentation
Before listing your property, make sure all your documentation is in order. This includes your ownership certificate (or certificate of ownership), proof of payment of property taxes, and any relevant permits or licenses.
2. Price your property realistically
To attract potential buyers, it's important to price your property realistically. Your real estate agent can help you determine a fair and competitive price based on current market trends, location, and the condition of your property.
3. Advertise your property
In addition to working with your real estate agent, you can also advertise your property online through popular real estate websites like Domik.ua, OLX.ua, and Slando.ua. Make sure to include high-quality photos, detailed descriptions, and accurate information about the property.
4. Be prepared for negotiations
Once you start receiving offers, be prepared to negotiate with potential buyers. Your real estate agent can help you navigate this process and ensure that you get the best possible deal.
5. Close the deal
Once you've accepted an offer, you'll need to sign a contract of sale and transfer ownership of the property. Your real estate agent can help you with the necessary paperwork and ensure that everything is done correctly.
Related article: Is it possible to buy an apartment in Ukraine during the war?
What information and documents are needed for selling the apartment?
When selling an apartment in Ukraine, you'll need to gather a variety of information and documents to provide to potential buyers and to facilitate the sale. Here are some of the key pieces of information you'll need:
- Property documentation: This includes your ownership certificate (or certificate of ownership), proof of payment of property taxes, and any relevant permits or licenses.
- Property details: You'll need to provide detailed information about the property, including its location, size (in square meters), number of rooms, and any unique features or amenities.
- Property history: It's important to provide information about the history of the property, including any renovations or repairs that have been made, as well as any issues or damage that may need to be addressed.
- Maintenance fees: If the property is part of a larger complex or building, you'll need to provide information about any maintenance fees or other costs associated with owning the property.
- Utility bills: You'll also need to provide information about the utility bills associated with the property, including electricity, gas, water, and heating.
- Property photos: High-quality photos of the property are essential for attracting potential buyers and giving them a clear sense of what the property looks like.
By gathering and organizing all of this information, you'll be better equipped to market your property effectively and negotiate with potential buyers. Your real estate agent can help you with the process and ensure that all necessary information is provided to potential buyers.
Related article: What type of residence permit can I obtain in Ukraine through buying the apartment?
The procedure for the foreigner owner for selling the apartment in Ukraine
As a foreigner selling an apartment in Ukraine, there are a few specific procedures you'll need to follow. Here's an overview of what you can expect:
- Obtain a tax identification number (TIN): Before you can sell your property, you'll need to obtain a Ukrainian tax identification number (TIN). This can be done at any tax office in Ukraine or at a Ukrainian consulate or embassy abroad.
- Hire a real estate agent: Working with a real estate agent who has experience working with foreigners can be helpful in navigating the sale process and ensuring that all necessary documentation is in order.
- Prepare the property for sale: This includes gathering all necessary documents and information (as discussed above), as well as making any necessary repairs or renovations to ensure that the property is in good condition.
- Advertise the property: You can advertise your property online through popular real estate websites like Domik.ua, OLX.ua, and Slando.ua. Make sure to include high-quality photos, detailed descriptions, and accurate information about the property.
- Negotiate with potential buyers: Once you receive offers from potential buyers, you'll need to negotiate the terms of the sale. Your real estate agent can help you navigate this process and ensure that you get the best possible deal.
- Sign the contract of sale: Once you've accepted an offer, you'll need to sign a contract of sale and transfer ownership of the property. Your real estate agent can help you with the necessary paperwork and ensure that everything is done correctly.
- Pay taxes: When selling property in Ukraine, you'll need to pay a capital gains tax on the sale. The tax rate varies depending on the length of time you've owned the property and other factors. Your real estate agent can help you calculate the tax owed and ensure that it is paid on time.
Related article: How to check the seller of the real estate in Ukraine?
The amount of taxes from selling the apartment in Ukraine and how to pay them
When selling an apartment in Ukraine as a foreigner, you'll need to pay capital gains tax on the sale. The capital gains tax rate for individuals is 5% if you've owned the property for more than three years, or 18% if you've owned the property for less than three years.
To calculate the amount of tax owed, you'll need to determine the difference between the sale price of the property and the initial purchase price, as well as any additional expenses related to the sale, such as real estate agent fees or legal fees.
To pay the capital gains tax, you'll need to obtain a tax clearance certificate from the State Fiscal Service of Ukraine. You'll then need to submit the certificate, along with a copy of the contract of sale, to a Ukrainian bank to transfer the tax payment.
Alternatively, you can authorize your real estate agent or lawyer to handle the tax payment on your behalf. They will be able to assist you with the process and ensure that the tax is paid on time.
It's important to note that failure to pay the capital gains tax can result in penalties and legal consequences, so it's essential to ensure that all taxes are paid in full and on time.
The very important question is how to withdraw the money back to your country after selling the apartment in Ukraine. We've already talked about it here.
Can a foreigner owner sell the apartment without coming to Ukraine?
Yes, a foreigner owner can sell an apartment in Ukraine without physically coming to Ukraine. However, there are a few additional steps that need to be taken to complete the sale remotely.
First, you'll need to find a reputable lawyer in Ukraine who can act on your behalf in the sale process. Our lawyer can help you with all aspects of the sale, including marketing the property, negotiating with potential buyers, and completing the necessary paperwork.
You'll also need to obtain a power of attorney (POA) document, which grants your agent the legal authority to act on your behalf in the sale process. This document must be notarized and apostilled (certified for international use) in your home country and then sent to your agent in Ukraine.
Once you've found a buyer and negotiated the terms of the sale, your agent can assist you with signing the contract of sale remotely, using electronic signatures or other methods. You'll also need to arrange for the transfer of ownership and payment of taxes and fees, which can be done through a Ukrainian bank or with the assistance of your agent.
In the process of selling an apartment in Ukraine, many nuances can always arise: you want to receive funds in cash, or the account was not opened at the time of buying the apartment. We had cases when clients lost their TIN, which is needed when concluding a transaction with a notary, etc.
Our lawyers can help you deal with all these situations.
Find out the cost of supporting the sale and purchase of real estate in Ukraine from our specialists.
