What does a foreign need to buy a property in Ukraine? Buying property in Ukraine.

The only limitation relates to the purchasing of agricultural land; however, it is the topic to be considered separately.

The procedure of immovable property purchase for foreign citizens is the same as one for citizens of Ukraine. The only difference is the fact that foreign citizens have to legalize some of their documents. It is also to be mentioned that foreign citizens investing more than 100,000.00 Euros have a possibility to be issued with a residence permit in Ukraine. For information on residency in Ukraine please read the article «Residency in Ukraine».

The process of purchase of immovable property in Ukraine by a foreign citizen is as follows:

Stage one. Property choice.

The preparation for purchase formalities depends on the property type chosen: flat, house or business property.

From the article «Foreigners buying property in Ukraine. What can be done before purchase? » it becomes clear that activities to be done by a lawyer during preparation for purchase depend greatly on the type of immovable property chosen.

Stage two. Preparation of documents.

List of documents required for the purchase of immovable property:

Registration number of taxpayer’s record card in the State Register of Natural Persons-Taxpayers (taxpayer identification number).

You can read how it can be issued in the article «Identification code for non-residents in Ukraine».

Notarized translation of the passport into Ukrainian.

Translation of the passport will not take much time or effort, especially if you order it in Ukraine in advance; after your arrival, you can just pick it up at a translator’s. It is to mention that translations of your passport or any other document made outside Ukraine need legalization for its further use in Ukraine. That is why it is more advantageous and convenient to order your passport translation in Ukraine.

Original passport with a record on entry to Ukraine or with a valid visa.

A foreign citizen’s stay in Ukraine must be legal; the legality of stay is to be certified by relevant migration documents.

As you see, the list of documents required for the purchase of immovable property by a natural person is not long. For a foreign legal entity, the list will have significant differences.

Stage three. Preparation for the deal.

All significant matters of the planned immovable property deal are talked over.

Matters to be discussed by a buyer and a seller are

Procedure and terms of payment

In most cases, a Ukrainian seller will request cash payment in foreign currency from a buyer. It may seem rather strange for a foreign buyer; however, there is nothing to be afraid of. Ukrainian citizens are just trying to avoid additional costs connected to related fees and currency exchange charges in this way.

That is why we recommend opening an account in a Ukrainian bank in advance. Transferring of own money from abroad and subsequent withdrawing of this money from their own account in Ukraine is also a usual practice for foreign citizens.

Information on how you can open an account can be found in the article «Open a bank account for a non-resident».

- Is prepayment required?

The sellers often request an advance payment (prepayment) of 5% of the purchase price.

Real estate agent fee.  

The real estate agency fee may make 1 to 6% of the immovable property price.

- Payment for notary’s services  

1% of the purchase price + relatively small amount to be additionally paid for notarization (certification) of agreements/contracts as well for the issue of extracts from various registers. This additional payment may significantly vary depending on a notary.

- What is the procedure of agreements/contracts conclusion?

It is also very important and must be agreed upon when the property ownership right is transferred to the buyer. If the parties have agreed on purchase in installments the seller may stipulate that property ownership right is transferred after payment of the final installment.

Sometimes the seller may want to stay in the flat/apartment for some time after it is sold if the buyer has no objections against it. So, the keys may be handed over to the buyer a bit later than the actual sale date. 

All these conditions can and should be detailed in an agreement/contract in order to avoid misunderstanding in the future.

Stage four. The conclusion of the agreement/contract.

After all, conditions are preliminarily agreed upon, documents of immovable property are verified, agreements/contracts are drafted and agreed with a notary, a date of sale contract can be set. All parties, i.e. buyers, sellers, real estate agents, and lawyers, are gathered at a notary’s office on this day. Each party performs its respective function; a real estate agent is to make sure that a sale contract is concluded and to receive his/her agency fee; the lawyers are to ensure that all documents correspond to their previously agreed drafts. The seller receives the agreed amount from the buyer. After that, the notary registers the property right of the buyer on the grounds of these documents. 

All the stages listed above may vary depending on circumstances.