Ukraine » The Purchase Process

There has been an enormous upsurge in investor interest in Kiev real property in the last few years. People from all over the world are investing in the city that many consider the most beautiful in Europe. Compared to the prices of real estate in Western Europe, the prices are still relatively reasonable with good upside potential. Buy as an investment, a weekend getaway, or as a primary residence.The restitution of property after Communism complicated ownership in many cases, which is why most overseas buyers prefer to buy in fully restored apartment blocks, or newly built specialist residential apartment blocks, where ownership is no longer in dispute. Fortunately, there are many of these available.

Buying a home in Kiev is still very affordable. Like most other countries of the former Soviet Union, Ukraine is having a tough time ridding itself of old soviet bureaucracy. One of the greatest obstacles to buying real estate in Kiev is the amount red tape. However, it is manageable if you have patience and a good lawyer.

Ukrainian law provides that foreign legal entities, as well as joint ventures, international organizations, foreign citizens and persons without citizenship may own property in Ukraine. Foreign individuals are specifically allowed to own residential buildings, apartments, summer cottages and other objects of "personal use" (e.g. automobiles). Foreign legal entities are specifically permitted to own "buildings, facilities and other property of a social, cultural or industrial character." There is no legal requirement for a foreign individual or foreign legal entity to establish any form of residency or presence (e.g. a representative office or a branch) prior to or as a condition for acquiring property in Ukraine.

Foreign individuals and foreign legal entities are not permitted to own land in Ukraine or to obtain "rights to use" land. They may only lease land. As a matter of practice, however, foreign legal entities and individuals who have purchased buildings do obtain the right to use the land surrounding the building.

Your property rights are set forth in the Constitution of Ukraine and law of Ukraine "On Property". The law permits owners of property (including foreign investors and joint ventures) not only to own property but also use such property for commercial purposes, lease property, and keep the revenues, profits, and production derived from its use.

In order to enter into a sale-purchase agreement, you need to have the following documents:

1) Your passport with a valid visa
2) your tax payer number on the territory of Ukraine

The taxpayer number on the territory of Ukraine can be obtained at the Kiev Tax Administration. Usually, it takes about a week to get the document.

The legal process you follow is:

Signing a preliminary sale-purchase agreement and leaving a prepayment to the apartment owner. The preliminary agreement sets forth buyer's commitment to buy a specific apartment and seller's commitment to sell the apartment to the buyer within a specific time frame. The agreement also specifies the effective date for the major agreement, apartment price, prepayment amount, form of payment, and timing for handing out keys by the seller to the buyer and all other additional terms and conditions for the transaction, if any. The agreement is signed in the presence of a notary.

Typical term between signing a preliminary agreement and major agreement ranges from 10 days to 1 month as agreed between a buyer and seller. This time is needed to legally check the apartment and gather all necessary documentation for the transaction.Signing a major sale-purchase agreement.Registration of the purchase with state authorities and it takes about one week.