How to Buy an Apartment in Kiev, real estate investment in Ukraine

To purchase as a foreigner, the regulations are the same as a native Ukrainian. You will need to have a passport and a tax identification number. If you don’t have the tax number, you need to translate your passport in any translation agency and apply for the tax number at a tax administration. In Kiev it's located here: Sholudenka street, 33/19, Kyiv, Kyivs'ka oblast, 04116, phone: 044 461 7612.

If you decide to sell your property and you have owned it more than 3 years, there are no additional expenses, except for a 1% state tax and payment for the notary services ($100-200). However, if you sell a second property within the same year or you sell the property you have owned less than 3 years, there is a 18% income tax for you as a non-resident.

As for the lawyer, there is no cost as usually a standard notarized form is used. There will be a fee for the notary (about $200-$300), which is usually split between the buyer and the seller and a 1% Pension Fund tax.

For commission, it is 3-5% depending on the property price, and it is paid by the buyer.

No, we don’t have escrow. Usually the buyer pays a prepayment to the seller (the amount of prepayment is negotiable) and they sign a preliminary purchase agreement. It takes approximately up to one month to prepare the necessary documents for sale. If time is limited, we can expedite the process, but there are additional costs associated with this. Please contact us for further details. 

At the moment, there are no visible trends, up or down. Everything has plateaued, since the big fall in 2008. There are no more speculative transactions. Quality housing is still limited, so newly built structures are in demand. Older buildings (built from 1900-1980) are becoming less popular, and the price difference is significant. The real estate market reflects Ukraine society, as a whole. Since a middle class is not prevalent here, there are two types of properties that are popular: 1) economy class homes up to $100,000-$200,000 and 2) luxury housing over $1 million dollars.

To buy property in Ukraine as a private individual, a personal tax ID number must be obtained. In addition, there are other ways to purchase property, such as through the statutory fund of a legal entity or elsewhere. If there’s a decision to explore different options, we can arrange a professional legal service for you from our partner legal company. This is an additional legal service that will have to be paid for.

Established residency and a confirmed income are necessary to apply for a loan.

We have strict foreign currency regulations in Ukraine. Before making any transaction, it is highly recommended that you consult a financial or legal advisor. As a real estate company, professional advice on this matter cannot be provided by All Star Kiev Realty, but our legal partner, Frishberg & Partners, is available to administer the proper services to minimize expenses during the transaction.

Also, more information about doing business in Ukraine can be found, in particular about real estate transactions, on their website: http://www.frishberg.com/index.php/en/briefing-papers

When applying for a home loan, the down payment is typically about 30-50% down. However, not all banks provide mortgages in such a risky market. Interest rates are extremely high. The lowest interest procured in the past year in Ukrainian currency is 17%. Please note, due to this, most transactions are completed in cash.

Yes, most sellers actually prefer this.

There are different forms of corporate taxes, depending upon the form of legal entity chosen.  Also, it is dependent upon whether or not the legal entity is a VAT payer (20%). Basic is 19% (starting from January 01, 2014 – 16%) – profit tax and 20% VAT.

Personal tax-wise, it is 18% for residents and non-residents. Seeking professional legal advice on the tax issue is highly recommended.

A temporary residence permit can be obtained if you have work permit. In essence, a company can be started and one can hire oneself. A permanent residence permit can only be obtained for a few specific reasons, such as: marriage to a citizen, having close relatives, who are Ukrainian citizens, etc. More detailed information about immigration law can be provided to you by a legal counselor.

The lowest interest procured in the past year in Ukrainian currency is 17%.

Banks prefer fast, risky, and highly profitable cash loans over long-term mortgages.

Foreigners may buy all types of property, except for agricultural land.

For the Buyer, the following services related to the property are available: finding, advising on the condition of a particular property (in terms of its quality and possible hidden defects), negotiating, and handling the documentation process. In addition, we can find and recommend all necessary service providers (such as legal, engineering, finance, construction, etc.) However, all such services will be provided by other companies and need to be paid separately.

No, this service is provided by lawyers.

No, this service is performed by lawyers.

Yes, we are partnered with Ukrsibbank, who can help ensure that all money transactions go through smoothly.

Yes, we perform all such tasks.

The most important legal service during such a transaction is due diligence. Also, if a transaction is not handled in all cash in the name of the private individual but other instruments (such as mortgage, rent-to-buy, setting up a legal entity with the property in statutory fund etc.) are used lawyers will work on such an agreement.

The following info should be prepared for optimal service in recommendation prior to any inquiry in property: 1) the approximate size of investment in consideration, 2) the desired return, and 3) and the type of real estate that is most appealing.