What tax fees you should pay and what documents you need to have to buy property in Ukraine. Read this article and be smarter in process of purchase.
The regulations are the same as for native Ukrainian.
Documents
To buy property in Ukraine, you need to have:
- Passport translated in Ukrainian language
- Ukrainian personal tax code
- If you are married, you also need the same documents of your spouse and translated original document of marriage.
If you don't have Ukrainian tax code, you need to apply for it at a tax administration. Here is location on Google Maps
To buy property in Ukraine, you need to have:
- Passport translated in Ukrainian language
- Ukrainian personal tax code
- If you are married, you also need the same documents of your spouse and translated original document of marriage.
If you don't have Ukrainian tax code, you need to apply for it at a tax administration. Here is location on Google Maps
Legal contract
Buyer and seller sign standard notarized contract of sale in Ukrainian language, so you also need to invite a licensed translator for the deal.
There is 1 way to purchase secondary real estate - only a notary deal. But if you want to buy primary property on construction study, there are 6 different ways. If you decide to explore different options, we can arrange a professional service for you.
Buyer and seller sign standard notarized contract of sale in Ukrainian language, so you also need to invite a licensed translator for the deal.
There is 1 way to purchase secondary real estate - only a notary deal. But if you want to buy primary property on construction study, there are 6 different ways. If you decide to explore different options, we can arrange a professional service for you.
Taxes and other additional payments
Notary fee - about $200-$300, which is usually split between buyer and seller;
Translator service - about $200, whoever needs it pays;
Bank service - about $120 to create an account + bank % for transferring funds from another country;
State duty tax - 1% from an appraisal of the apartment, buyer pays;
Pension fund Levi tax - 1% from an appraisal of the apartment, seller pays;
In order to be able to sell the property, the seller needs to order an appraisal of the apartment (it cost $80) before the transaction. Often, the assessed value is below the actual selling price. This can be a problem in some situations. Be sure to order a consultation in such a situation to get a risk assessment.
If you decide to sell your property and you have owned it more than 3 years, there are no additional expenses, except of 1% state tax and payment for the notary services. However, if you sell a secondary property within the same year or you sell the property you have owned less than 3 years, there will be 19,5% income tax for a non-resident. For Ukrainians, it is 7,5% in the same situation.
Notary fee - about $200-$300, which is usually split between buyer and seller;
Translator service - about $200, whoever needs it pays;
Bank service - about $120 to create an account + bank % for transferring funds from another country;
State duty tax - 1% from an appraisal of the apartment, buyer pays;
Pension fund Levi tax - 1% from an appraisal of the apartment, seller pays;
In order to be able to sell the property, the seller needs to order an appraisal of the apartment (it cost $80) before the transaction. Often, the assessed value is below the actual selling price. This can be a problem in some situations. Be sure to order a consultation in such a situation to get a risk assessment.
If you decide to sell your property and you have owned it more than 3 years, there are no additional expenses, except of 1% state tax and payment for the notary services. However, if you sell a secondary property within the same year or you sell the property you have owned less than 3 years, there will be 19,5% income tax for a non-resident. For Ukrainians, it is 7,5% in the same situation.
Agent commission
Agent commission in Ukraine is 3-6% depending on different indicators.
Historically buyer pays a commission, but time goes and now pays the one who orders the service. In 6 from10 of situations if you call in AD and said "Can I see this apartment?" you will hear "Sorry, but it already sold, maybe we can offer you another one?" or "Okay, we can show it, but you need to pay 5%". The task of such agents is to get your call in any way and sell you shitty real estate and they use fakes in AD. But you can also meet objects in AD without any commission and a decent agent.
There are a lot of unskilled agents who don't speak English and don't know a legal entity, only strive to get the money and that's all. Unfortunately, our state has not yet regulated real estate activities by issuing licenses, therefore, all qualified agents are members of the Association of Real Estate Specialists.
Agent commission in Ukraine is 3-6% depending on different indicators.
Historically buyer pays a commission, but time goes and now pays the one who orders the service. In 6 from10 of situations if you call in AD and said "Can I see this apartment?" you will hear "Sorry, but it already sold, maybe we can offer you another one?" or "Okay, we can show it, but you need to pay 5%". The task of such agents is to get your call in any way and sell you shitty real estate and they use fakes in AD. But you can also meet objects in AD without any commission and a decent agent.
There are a lot of unskilled agents who don't speak English and don't know a legal entity, only strive to get the money and that's all. Unfortunately, our state has not yet regulated real estate activities by issuing licenses, therefore, all qualified agents are members of the Association of Real Estate Specialists.
Way to deal
- Find an apartment suitable for all parameters;
- Discuss all the small details and terms of the deal with the seller;
- Prescribe these details in the deposit agreement and make a secure payment;
- Prepare a complete package of documents for the transaction;
- Meet at a notary, sign the necessary documents, settle and you're done.
As a rule, the process from the deposit to the transaction takes no more than 7 days, but you should always take into account force majeure and prescribe the deposit a little longer in terms of time.
- Find an apartment suitable for all parameters;
- Discuss all the small details and terms of the deal with the seller;
- Prescribe these details in the deposit agreement and make a secure payment;
- Prepare a complete package of documents for the transaction;
- Meet at a notary, sign the necessary documents, settle and you're done.
As a rule, the process from the deposit to the transaction takes no more than 7 days, but you should always take into account force majeure and prescribe the deposit a little longer in terms of time.
Deal settlement
90% of Ukrainian sellers prefer cash payments on the deal. People here have no trust to banks. Also, it needs an additional % and time to withdraw money. If you prefer to make a payment by bank, be ready that it will be additional expenses.
90% of Ukrainian sellers prefer cash payments on the deal. People here have no trust to banks. Also, it needs an additional % and time to withdraw money. If you prefer to make a payment by bank, be ready that it will be additional expenses.
Tips before buying
First, determine the purpose of your future investment. You will live here, rent out, or resell? Second, determine the way you want to make a deal. Third, compare prices in different locations and check out rent market prices. Fourth, be careful of scammers and try to avoid such sellers.
So, ask yourself: I have enough time to study the real estate market, delve into legal issues, schedule meetings, call a lot, write and communicate?
Or entrust these tasks to a specialist, receiving reports on the work performed, and doing more important family/work matters?
First, determine the purpose of your future investment. You will live here, rent out, or resell? Second, determine the way you want to make a deal. Third, compare prices in different locations and check out rent market prices. Fourth, be careful of scammers and try to avoid such sellers.
So, ask yourself: I have enough time to study the real estate market, delve into legal issues, schedule meetings, call a lot, write and communicate?
Or entrust these tasks to a specialist, receiving reports on the work performed, and doing more important family/work matters?
Competence is expensive. Incompetence is even more expensive.
Connect with us and we will make for you a full support, and find the best option.
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