What is process involved in buying a property in Ukraine?
Purchasing a house or property in Ukraine is relatively straightforward and can be done remotely i.e. you do not need to visit Ukraine before purchasing. Typically a process will take around 6 weeks from start to finish and here at UAP we ensure that you are kept up to date each step of the way.
Full details on how to purchase property in Ukraine can be found by clicking here.
What documents should be brought with me?
Whether you decide to come to Ukraine to complete your property purchase or whether you are doping it remotely, there will be certain documents that we will need from you. These include:
- Copy of your passport
- Your spouse's (if married) agreement for purchasing or buying of any property in Ukraine
- A POA (power of attorney) in the event that we need to complete documents on your behalf. This can be revoked or cancelled after sale has been completed.
What are the costs involved in buying Ukrainian real estate?
Here at Uaproperty we have been helping English speakers to successfully buy and own property in Ukraine since 2004. In that time we have built up a wealth of experience and via our website we hope that you can build a clear picture of how to buy in Ukraine.
As with any purchase there will always be associated costs. When a non-resident purchases these will typically be higher than what a local will because there is more legal paperwork involved. Below we give a breakdown of what to expect on property valued between $5000-$20,000:
Notary fees: Each sale will incur notary fees that the buyer must be and these are connected with the price of the property you are purchasing. These fees will be around $400 and include a purchasing tax, notarisation of all documents (including power of attorneys and buyer passport).
Pension tax: This is charged at 1%
Government tax: As with the pension tax, this fee is only 1% of the property value
After sale document registration: In Ukraine it is the buyer's responsability to ensure that their new property's paperwork is registered with the correct state authorities. Failure to do this may result in some problems further down the line at resale time. We do this on your behalf and this will usually involve a trip to the municipality nearest the house. This will be around $300.
Legal and admin fees: Like with the notary fees, these are dependent on the value of the property. For a property around $5,000-$20,000 purchasers should budget for in the region of $1800. This will include official translations of paperwork such as Power of Attorney's and passport, obtaining your tax code, opening a Ukrainian bank account and taking you to the proeprty in person when you come to visit if you have purchased remotely.
What are typical property ownership costs in Ukraine?
The ownership of property will inevitable incur expenses, whether that is an annual property tax or maintenance. Below, we have listed some of the usual fees associated with owning property in Ukraine:
a) Utility bills: If your property is connected to utilities such as gas, water and/or electric there will be some fees associated with this. It's worth noting that in Ukraine, these fees will be modest especially when compared to Western prices.
Building plots that are not connected to utilities will not incur the above fees and owners that do not use their property in Ukraine regularly may decide to temporarily disconnect their property from utilities whilst it is empty.
b) Annual property tax: Annual property tax does not apply to all properties in Ukraine and when it does, the fees are very modest. A 1 bedroom apartment in Kyiv for example may only cost $50 per year. A 1,500m2 building plot in the Kyiv area will cost around $20 per year.
Usually, annual property taxes apply to city area plots and houses. However, please do not hesitate to contact us if you want to clarify the status of a particular property.
For our non-resident clients, UAP is able to ensure that your property taxes are kept up to date and paid on your behalf for a modest fee. Please contact us for more details.
UAP does offer various property care contracts to oversee and look after properties that are vacant and require periodic visits and checks. For further information on this, please contact us for a tailormade package.
Do you offer English speaking rental management in Ukraine?
Uaproperty.com can offer rental management on your property in Ukraine although this is area dependent. We already manage a number of properties on behalf of our overseas clients in Kyiv.
We take care of all the hassle associated with rental management and will deal with all aspects of owning a rental property on your behalf. After rent has been paid (usually at the beginning of each month), you will be issued with a rental statement confirming that month's incomes (and any expenditures).
Our rental management fees are very reasonable and UAP are proud to offer an unparalled service to our English speaking clients.
What land can I buy and own in Ukraine?
Non-Ukrainian citizens are currently restricted to owning building land in their personal names. Typically, we only offer building land on our website that is suitable for foregin investors to own. If you are unsure though, please ask us.
For clients that wish to invest in Ukrainian farmland, it is necessary to set up a Ltd company in Ukraine or to own via a Power of Attorney or long term lease. Running costs of a Ukrainian limited company are considered high and even Ukrainians will only use this method unless they really have to.
We always advise speaking with a qualified Ukrainian accountant in order to find the best method for you and to get an accurate idea of expected ownership costs if you decide to use a Ukrainian Ltd company. Please be aware that we are not qualified accountants and cannot offer advise.
How can I buy agricultural land in Ukraine?
Ukraine's has always been considered the breakbasket of Europe due to its unending miles of fertile farmland at very cheap prices. As a result, farmland in Ukraine is a popular investment choice with a range of investors.
Farmland in Ukraine can only be purchased via a Ukrainian Ltd company which may remain non-functional but it must be registered. This is something that UAP is able to assist with clients with (please note that company set up fees will incur extra costs that are in addition to normal property purchase fees).
What does "privatized" mean?
We are often questioned by clients who have seen properties on the internet they are interested in but are told it is "unprivatized" and are unsure what this means. This means that you have the rights to a property (or land) but do not technically own it. The property/land plot is still techincally owned by the Ukrainian government and the vendor needs to reclaim it back.
Land or property that is classed as privatized may be purchased and owned outright by a non-Ukrainian citizen but the ownership will remain with the Ukrainian government. it is worth noting that during this time, no other third party has the right to purchase it from the government.
How much money (cash) can I legally bring into Ukraine?
You are permitted to bring in 10 000 USD in cash into Ukraine without needing to declare it. If you need to transfer more, we are able to open up Ukrainian bank accounts on behalf fo clients that visit to receive other payments.
How can I open a bank account in Ukraine?
We regularly assist clients to open bank accounts in Ukraine and in order to do this, you will need a Tax Code and your passport.
Can I get finance or a mortgage in Ukraine?
Finance is available in Ukraine but for non-residents, it is restricted to the capital, Kyiv, only. Lending requirements are extremely stringent and if you are able to provide the necessary information to the banks, it is likely you will pay a high interest rate (18% or more).
Because of this, we do recommend to our clients to seek finance in their home country as likely as not, it will be significantly cheaper.
How do I get a Ukrainian Tax Code?
Aside from assisting our clients to purchase proeprty in Ukraine, we regularly get Ukrainian tax codes for non-Ukrainian citizens. Even if you are not purchasing in Ukraine, there can be many reasons why you need a tax code. If you live in Ukraine for part of the year, having a tax code is very useful (you can get a mobile contract, open a utilities account) and also open a Ukrainian bank account with a tax code.
It normally tales us no more than 1 week to have your tax code documents ready from when we get your paperwork back. So if you need good value, reliable help in getting a Ukrainian tax code, please don't hesitate to contact us.
If you are visiting Ukraine then we can meet with you and obtain a tax code. But if you are unable to visit, don't worry! We will still be able to get one for you remotely.
We will email to you a questionnaire that must be completed and returned back. Once we have this and a copy of your passport we will draw up a Power of Attorney document which must be signed in front of your local notary officer and then apostilled.
This is then returned back to us by courrier and we do gthe rest of the work to get you your tax code promptly which will be emailed to you and then the hard copies sent to you.
Our fees are modest for this and please contact us for further information.
Do you arrange viewing trips?
Uaproperty.com can arrange accompanied viewing trips for you to view and inspect a property. It is an excellent way to get a feel for a property and its locale prior to buying and you will always be accompanied by an experienced member of our staff who will be able to answer any questions about a property that you may have. And if we dont know the answer, then we can always find out!
Some properies are quite remote from our office and can be difficult to get to (bad roads) and we do ask that clients cover our costs for a viewing trip which are typically around $100 per day (proportionately less for properties close to our head office in Kyiv). This fee is fully refundable in the event you purchase up to a maximum of $200.
Payments for viewing trips will need to be made in advance (on the same day before the viewing is fine) as we are unable to go on visits prior to this happening. If there are a number of properties you wish to see, please get in contact with us before your trip to Ukraine so that we can best organise the visits.