In our previous publications, we were talking about popularity of real estate sector as an object of foreign investment.
Real estate is a popular object of commerce
Ukrainian real estate market suggests a wide choice of objects and the prices are lower than in European countries. These two factors make real estate in Ukraine attractive for foreign investors. Thus, there will arise questions connected with the legal side of the issue.
Some are interested whether there exists a requirement to be registered as a private entrepreneur in Ukraine or whether the permanent residence permit is needed, whether it is allowed to buy real estate without restrictions, etc.
Ukrainian current legislation sets almost zero requirements for such investors. To buy real estate in Ukraine you do not even need to be Ukrainian tax resident. Foreigners have equal rights with the citizens of Ukraine. However, there are few exceptions:
- Under Part 2 of Art. 81 Land Code of Ukraine “Foreigners and stateless persons may acquire ownership of land nonagricultural within settlements, as well as non-agricultural land outside the settlements, which are immovable property belonging to them on the right private property. “
- According ch.2-3 century. LCU 82 “Foreign entities may acquire ownership of land nonagricultural:
a) within settlements in case of acquisition of real property and to construct objects associated with business activity in Ukraine;
b) outside the settlements in case of purchase of real estate.
3. Joint ventures established with foreign businesses and individuals can acquire ownership of land nonagricultural in cases stipulated by parts one and two of this article and in the manner prescribed by this Code for foreign entities.
- Agricultural land;
- Objects belonging to public property;
- Objects that are state property.
Thus, it appears that a foreigner may directly or indirectly acquire any property other than property belonging to the municipal or state property. Also, another problem is with the purchase of land diyanok – from agricultural and so everything is clear, and with different purposes, foreigners directly or even oposerdkovano by creating legal entities in Ukraine may only acquire real estate on it, and no real estate plot of land can not buy.s.
The order of real estate purchase by non-resident
There are strict requirements that all the contracts concerning real estate purchase must be concluded in a written form and notarized. The title is to be registered.
For the conclusion of sales-purchase contract one will need the following documents:
- Documents confirming the ownership of the seller of the property – for example, a contract of sales-purchase with the previous seller, or court decisions etc.
- State certificate, indicating the ownership of the land on which the facility is located;
- Documents for state registration of ownership of the seller (or information card, if the ownership was registered in 2016).
A notary is entitled to ask additional documents. After the conclusion, the contract is registered and only after that, the contract is considered valid. The parties get their copies of the information card from the State registrar.
Frequently asked foreigners buying real estate:
– Can a foreigner buy an apartment for cash?
In the secondary market, despite the ban NBU use of cash payments, most operations are carried out in US cash. With sales to date, as of 2017, the apartment by a foreigner can also get cash, if desired.
– What if a foreigner wants to pay for the property by bank transfer?
If a foreigner buys a house, then pay the secondary market through the bank will be quite difficult. There are 2 options: 1) negotiate with the seller for non-cash still, but it can lead to raising the price of the rent in the amount of bank commissions; 2) buy in new buildings. When buying an apartment in new building foreigner pays the money through the bank.
– Does the purchase of real estate by foreigners any additional benefits (right)?
Overall – no. But if you do buy an apartment through a special procedure as an investment (only through incorporation) the entitlement to permanent residence. Read more here – https://migrate.com.ua/permanent-residence-permit-ground-investment/
Call your lawyer!
Purchase of real estate is very responsible. Consult your lawyer to make yourself protected from all potential risks and fraud. Attorneys at law “Bachynskyy, Kolomiets and partners” are always ready to make you and your business safe.