BUSINESSINDIVIDUALS

Real Property Purchase. Restriction of Foreign Person’s Rights to Real Property

For foreign persons intending to purchase real property in Ukraine there are no established restriction for buying, in particular, land plots, dwelling houses, non-residential spaces, apartments, office, etc. In general, foreigners may exercise the same rights and obligations as Ukrainian citizens. As an exception to this rule is the restriction provided by the land legislation of Ukraine under which foreigners are not entitled to acquire ownership right to agricultural land (plough land, perennial plantings, hayfields, pasture fields and fallows, etc.). It should be noted though, that a foreign legal entity is a company located outside Ukraine and was created by legislation other than the legislation of Ukraine. 

Foreign legal entities and joint venture established by foreign legal and by individuals may acquire ownership of the land only non-agricultural use:

  • in settlements areas in case of purchase of immovable property and for the construction of facilities related to business in Ukraine;
  • outside the settlements in case of purchase of real estate.

It should be noted though, that foreigners have no right to purchase agricultural land, lands of historical and cultural significance and others as mentioned above.

The procedure of real property acquisition by foreigners in Ukraine is quite similar to the same done by Ukrainians enterprises. 

The first step should be notarized translation into Ukrainian passport of representative of a foreign entity (agent, director, etc.), extract from the judicial, commercial registry, documents that confirm the powers of agent if the agent sign the contract. This procedure may be done through addressing any translation agency or bureau.

Then it is necessary to open investment funds in any Ukrainian bank. Once the investment funds are credited, an apartment, office or other real estate items can be purchased.

Acquisition of real property is performed through real estate purchase agreement conclusion at a notary office and its further state registration. Both these procedures may be carried out by any notary at the location of the property under purchase or the place of residence (location) of its seller.

For the purchase agreement notarial certification and its state registration the seller shall provided originals of the following documents: document confirming the origin of the property rights (purchase agreement, certificate of inheritance right, certificate of ownership right, judgment, act (certificate) for a land plot, etc.), extract on the right to real property registration, technical passport of the real estate, house, non-residential premises; a property evaluation report, owner’s ID, consent statement of the other spouse if the real estate is a common joint property.

By the results of the registration conducted a notary provides the buyer with a copy of the purchase agreement and an extract from the state register in the prescribed form confirming the registration of property right to the real estate.