Foreign citizens have the right to buy and own property in Ukraine. Your property rights are set forth in the Constitution of Ukraine and law of Ukraine "On Ownership". 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, after all necessary taxes are payed.
1. If you are buying remotely or a visiting for less than 3 weeks, we recommend you having a Power of Attorney drawn up by your local solicitor, authorizing©www.santaproperty.com to complete the legal formalities in your absence. Full details will be given to visiting clients.
2. Once you have chosen which property to buy, you will sign a Preliminary sale/purchase agreement and pay a deposit of 5% or minimum $3000. This agreement sets out the terms of purchase, including date of full contract signing and completion. This agreement is signed in the presence of a Notary officer.
3. You will also be required to sign an Agency agreement with us or, if the property isn’t ours, with another agency. Commission will be paid to the agency handling your purchases, the amount varying according to company. santa.kosiv.info, for example, charge $1,950 minimum up to $38,000 . From the amount of 39,000$ up to 80,000$ it will be 5%. From the sum of 80,000$ up to 120,000$ it will be 4%. If taking the sum of 120,000$ up to 160,000$ it will be 3,5%. Above this figure, it is 3%. For this fee, we assist with the whole buying process and help ensure safe legal process and trouble free purchase.
4. Signing of the main sale Agreement
5. Registration of the purchase with state authorities. To save buyer's time is usually conducted by us by Power of Attorney.
6. When buying property in Ukraine, you have the option of insuring the contract for 1% of purchase price, as mentioned below in “Buying costs”.
Documents you need to bring
To enter into a sale-purchase agreement, you need to have the following documents:
1) Your passport. And copy of birth certificate
2) Your tax payer number on the territory of Ukraine
The tax payer number on the territory of Ukraine can be obtained at the Kiev Tax Administration. If short visit, you will need to give us Power of Attorney to receive it..
3) If a buyer has a registered marriage and he/she has come to Ukraine without wife/husband, he/she must have the following documents:
-Marriage certificate (copy), if a buyer is married
-Legalized copy (certified by Apostile) of husband's/wife's agreement to buy a property
-husband's/wife's passport copy
4)Power of Attorney certified by Apostile (legislation certificate) authorizing our company's employee to receive the tax identification code in Tax Inspection.
Apostile is an International legislation certification and means confirming that a signature, seal or stamp appearing on a document is genuine.
Address of Apostile legislation in London:
The Legisaltion Office
Foreign & Commonwealth Office
Old Admiralty building
London SW1A 2LG
020 7008 1111
Attention Starting from January 2007 taxes for property registration in Ukraine have changed. At present time while signing purchase and sale Agreement the following taxes are to be paid:
Flat: owning apartment up to 100m2 in size and under condition that owner is selling flat first time in the year - 1% government tax plus 1% pension fund.
If the flat is for sale second subsequent time in a year - 1% government tax, 1% pension fund plus 5% gain tax.
If a flat is for sale first time but its size is more than 100m2 so 5% gain tax is to be paid from the area more than 100m2.
Plot: 1% government tax plus 5% gain tax.
House with a plot: if a house is up to 100m2 and owner makes first sell in the year so - from the cost of the house 1% pension fund plus government tax and from the cost of land 1% government tax.
1) Agency fee (3-5% of apartment price)
2) Government tax - 1% of property price
3) Pension fund levy - 1% of property price (not for plots)
4) Notary expenses of 150$ - 200$
5)Insurance policy - 1% of property price (if a buyer wishes).
The legal process is dealt with by a lawyer nominated by our agency and known to be an experienced professional. It's normal for the Lawyer to represent both sides, as in France, for example, and the lawyer is legally bound to be diligent. If there is the slightest irregularity in a property's paperwork, you will be advised accordingly.
It's worth noting, that to involve another solicitor is unnecessary legally and is likely only to drag out a sale. In fact, in our experience you will most likely lose the property. It is by avoiding such pitfalls as duplication of solicitors that we maximize your chances of a successful conveyance.
Most of our property sales are done within 15 days to a month, with the odd one taking longer if some legal issue crops up. If a property title isn’t 100% in order, our solicitor will cancel the sale. Fortunately, this is very rare as we try and pre-vet properties and owners before offering for sale.
Payment of funds from UK or elsewhere to Ukraine can be done through a currency specialist (as noted below) or from your local Bank. You will need to fill in a "Priority Payment" or "Electronic Transfer" form and the payment should take about 3 days. When you fill in the form with the Bank staff, please bear in mind that the slightest error can result in the payment not being made. This can be critical when making payment for the deadline on a Contract. So check the form carefully before signing it and give yourself plenty of time and transfer at least a week before the due date.
For rates better than the high street banks, we recommend contacting Ernie Enver at Currency Solutions on +44 (0)208 8502266. He offers a friendly and great value service.
We find property that is so low priced that an immediate decision and fast purchase is often required. To enable our clients to secure such bargains, we offer a way of buying quickly without visiting Ukraine. It's called "Remote Purchase", when you authorize us to sign documents on your behalf and you are the named beneficiary on the Contract. A formal Power of Attorney will be needed.
In this process, you authorize us to act on your behalf. 5% of the purchase price is sent to us immediately and sale agreed with vendor. Remote purchase can be a simple and fast process, that removes much of the stress from buying. No mad rush to get to Ukraine to buy before the property is sold to another. Just a call or e-mail along with the 5% and its yours, subject to legal process.
But please bear in mind that sending your deposit starts the legal process, with attendant costs, and your deposit will not be refundable if you decide not to proceed, for whatever reason, So, be sure that you wish to purchase. Also, please do not treat the Remote Purchase deposit as a "property holding" tactic. We spend a lot of time doing the initial checking of documents and drawing up of the Preliminary Contract - work for which we will not get paid if you do not proceed (the seller gets the deposit in full, not our Agency).
If the sale falls through due to actions other than your own, such as the seller not proceeding or the solicitor terminating the process as he's not 100% happy with the documentation, then you will receive a full refund of your deposit. We don't deduct any costs, but refund in full.
Lastly, it's worth mentioning that many of the very cheap Ukrainian properties are not up to "Western Standards" and will need work doing on them. Typically, this could include installation of internal WC and new bathroom, and fitting a kitchen, plus various other works. Such costs are, of course, very much reflected in the amazingly low prices.
We try to show all aspects of a property on our site, good and bad.