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How to buy land for construction in Ukraine for a foreigner?

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Land in Ukraine is a resource and an investment in which many foreign investors are interested. Many people know that there are restrictions on the purchase of land by foreign citizens in Ukraine. 

Today we will talk about the situation when land is purchased for construction. Does it make a difference what kind of facility you plan to build and how to buy land for construction for a foreign person in Ukraine?

First steps: decide on the land 

First of all, you need to decide on the personal criteria for selecting land for your purposes: location, size, neighbours, communications, etc.

For example, if there are no utilities, you will either have to wait for them or invest extra money in them. To extract water, you will have to drill a well, etc.

Secondly, there are several restrictions that directly affect the possibility for foreigners to buy land in Ukraine. For example, nowadays there is still a ban to buy agricultural land. But we are not so much interested in this situation - the intended purpose of the land plot must be for residential or public building.

It is true that there is some kind of scheme for buying almost any kind of land in Ukraine - through registering a Ukrainian company and acquiring land on it. But it depends on your goals.

A separate important nuance in choosing land is whether or not you are prepared to buy land for building purposes, if there is already some kind of a structure on it. The fact is that it is not uncommon in the land market of Ukraine to find plots of land with illegal constructions. On the one hand it usually makes the land cheaper, but on the other - it can bring a lot of problems for a person unfamiliar with the laws of Ukraine. The building will have to be legalised first and only then demolished for new construction.

Related article: How to check the seller of the real estate in Ukraine?

Check the seller of land in Ukraine

Buying land in Ukraine is possible not only from a private person but also from a legal entity and even from the state itself. Buying land this way is called "primary sale" and has its pros and cons: most likely the documents for the land will be in order, but the cost can greatly exceed the market value.

If the land has already been owned by someone - an individual or a legal entity - it will be referred to as 'secondary' and has its own pitfalls: first and foremost, the history of the land. 

You should check a number of facts about the seller to make sure the transaction is secure: 

  • whether the person is the owner or a proxy;

  • whether the person is the sole owner of the land or more than one;

  • how many years the owner has owned the land - if the seller has just bought it and is reselling it immediately, this is a wake-up call.

All of this information can be obtained and analysed by our lawyer, who will assess the safety of doing business with that particular counterparty.

What documents do I need to buy land in Ukraine?

The standard package of documents that will be required to conclude a transaction:

  • State land deed (not obligatory in every case);

  • Expert appraisal of the land plot (issued by an independent expert licensed to do so). Our lawyers will help with arranging valuation of the land if the seller does not have one;

  • Passport and TIN of the owner and his spouse, if any;

  • Marriage certificate (or divorce certificate) if the owner is married. The written consent of the seller's spouse to sell the land will also be required.

Of course, most of the documents are the responsibility of the seller, but it is in your interest to make sure that they are all present and correct.

It is important to check the terms of the land purchase agreement as well. If you do not speak Ukrainian, you should come to the notary with a certified interpreter. Our company provides such services, we use our reliable translator partners in the process. 

If you want to buy a plot of land in Ukraine - contact our specialists. We will help you to do it safely and profitably.

Views: 479