The purchase of an apartment by a foreigner in Kyiv / Ukraine has a number of legal peculiarities that most often raise questions from foreign clients of the Zilver Law Firm:
- Can a foreigner purchase an apartment in Kyiv / Ukraine?
Yes, Ukrainian legislation allows foreign citizens to buy and own apartments (real estate) in Ukraine.
- Is it possible to buy a ready-made apartment or an apartment under construction (developement) in Kyiv / Ukraine?
It is allowed to purchase both a ready-made apartment and/or an apartment under construction in Kyiv / Ukraine. The differences will be in cost, registration procedure and guarantees.
- Is it better to purchase an apartment in Kyiv / Ukraine registering it under an individual or a company (legal entity)?
It all depends on the purpose of purchasing an apartment in Kyiv / Ukraine. If an apartment in Kyiv / Ukraine is purchased for personal long-term use, then it is better to buy it as an individual.
If an apartment is purchased for resale, lease, and even more so if several apartments are bought in Kyiv / Ukraine, then it makes sense to consider purchasing real estate for a company, but taking into account the tax burden of Ukrainian companies.
- How does it work for a foreigner to purchase an apartment in Kyiv / Ukraine?
When an apartment is selected, it is necessary to conduct a due diligence of the apartment (developer), which could determine the possible risks of purchasing such an apartment in Kyiv / Ukraine. It is better not to limit yourself with the services of a realtor, but to order the appropriate legal service from specialists, for example, from lawyers of the Zilver Law Firm.
Further, it is necessary to agree on the terms of the transaction, incl. settlement procedure. If the apartment is purchased from another non-resident (in accordance with clause 170.10.2. Clause 170.10 of article 170 of the Tax Code of Ukraine) or settlements will be carried out in hryvnia, then you will have to open a bank account in a Ukrainian bank. It should be borne in mind that quite often individual sellers aim to receive a significant part of the payment in cash.
Naturally, in order to complete the transaction with a notary, translations of the buyer’s documents and his personal presence or the presence of an authorized representative will be required (this may also be a lawyer).
The deal is being finalized at the notary, who provides the necessary account details for paying the fees, and also enters information in the register of rights to real estate about the new owner of the apartment in Kyiv / Ukraine.
- Can a foreigner rent out an apartment in Kyiv / Ukraine?
Yes, he/she can. In this case, you will have to pay taxes in Ukraine.
- Will an apartment in Kyiv / Ukraine be considered as a joint tenancy of the spouses?
- Can a foreigner freely sell an apartment in Kyiv / Ukraine?
There are no restrictions on selling an apartment in Kyiv / Ukraine. The owner (regardless of citizenship) is free to sell an apartment in Kyiv / Ukraine.
Lawyers of the Zilver Law Firm are ready to help in checking an apartment in Kyiv / Ukraine before buying it, to advise and accompany the transaction on the purchase of an apartment in Kyiv / Ukraine. List of the required documents and date to buy an apartment in Kyiv / Ukraine is here.
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