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Purchase Process in the Ukraine

Below is the standard purchase process in the Ukraine and issues that may affect that purchase:

• Foreign citizens have the right to buy and own property in Ukraine according to the Ukrainian Constitution. The law permits purchasers of property (including foreign investors and joint ventures) not only to own property but also to use such property for commercial purposes, lease property, and keep the revenues derived from its use after tax.
• Once you have found your property, a preliminary sale/purchase agreement is signed in the presence of a Notary, setting out the purchase terms and the agreed dates of full contract signing and completion.
• A deposit of 5% or $3,000 (whichever is the larger) is paid at the preliminary stage.
• You will then sign an agency agreement and a main sale agreement by the agreed date.
• The property purchase must be registered with the state authorities.

Costs of a standard property purchase in the Ukraine include the following:

• The transfer of property is liable for stamp duty at a rate of 1% of the contract value. However, this duty can be paid by either party subject to your purchase agreement.
• Capital gains on the sale of land are calculated as the difference between the sale and purchase prices of the land, increased by the inflation coefficient, if an annual inflation rate for the relevant calendar year exceeds 10% per annum.
• Capital gain by a non-resident from sale of real estate located in Ukraine is subject to 15% tax.
• Sale during a reporting year of more than one apartment or house is liable for personal income tax at 5%.
• Rental income is subject to personal income tax at 15%. Businesses that rent property from an individual are obliged to withhold this 15% tax from their rent payments.

The Obelisk Advantage:

As Obelisk approaches its projects purely from an investment perspective, its priority is to deliver each real estate product with an emphasis on simplicity and transparency throughout the purchase process. Therefore, Obelisk has already identified the purchase procedure for its clients as a simple, four step process:

1. The client chooses and reserves the unit that best suits their investment requirements, and Obelisk takes the client through a compliance procedure.
2. An independent lawyer, sourced and appointed for the client by Obelisk, will have already carried out full due diligence on the real estate product. They will issue all purchase contracts and paperwork to the client.
3. On receipt of this contract, the client will sign and make the first payment. The lawyer will notify the client of all further payments when required.
4. The appointed lawyer will also represent the client in all aspects legally required within the country of purchase, ensuring that clients of Obelisk enjoy the benefits of simple and hassle-free real estate investment.

Read more about buying property Ukraine.