Real estate: purchase & sale
The Ukrainian real estate market made significant go since late 90-s and has slowed down since crisis in 2009. Nevertheless prices light declining during past few years didn’t cross out its rapid surge before. At the moment real estate objects in the most popular destinations – Kiev, Odessa, Crimea Southern Coast – are considered overestimated corresponding to the European market. Situation in small towns and unpopular locations is the opposite. If you are a country life fan and not conscious about city comfort you can buy a country house almost for a penny – there are plenty of deprives villages all around Ukraine, where a half of the residences are completely deserted.
National regulation allows any non residents to buy such property in Ukraine as:
- Private apartments and houses (new or privatised)
- Land for non agricultural purpose.
See also the feature in Business Ukraine here on registration
Real estate agency or by yourself?
The Ukrainian real estate law is rather tangled and complicated, so facilitation of solid local real estate agency or broker simplifies your task and saves time much. You may look up for some options on one of the numerous relevant sites and then visit Ukraine to view them personally. It takes about 2-3 days for options revision and 3-4 days (up to 15 days) for making the bargain. The agency’s facilitation is of great value due to the option to buy should be checked for its legal accuracy. There are plenty of financial frauds with land plots in Ukraine, so this matter claims extremely attention.
Another option - but very risky - is to purchase property on-line, avoiding a trip. In this case you should hire the local real estate agency, set a bank account in one of the Ukrainian banks and transfer money. It works, but we would recommend you to visit the object before signing up the contract personally anyway.
Additional cost for purchasing and selling
This is an approximate calculation of additional expenses on purchase or sell:
- 3-5% - real estate agency fee. May be split by a seller and a buyer.
- 1% - property insurance (voluntary for a buyer);
- 1% - state tax on property purchasing (not for a plot);
- 1% - payment to the Ukrainian Pension Fund;
- Up to USD 400 – a notary’s fee.
- If the residence is the second to be sold during one year term – additional 5% gain tax.
- The same for the residence of more than 100 sqm, even if it is sold for the first time.
- For a plot: 1% government tax plus 5% gain tax.
- House with a plot: 1% - for Ukrainian Pension Fund and 1% -state tax (if the house is up to 100sqm).
- 1% of cost of land - state tax. – Everything is valid for the first sell during the year.
The list of documents you need to buy-sell real estate property is here.
If you fancy building your own house, many have tried and been successful. Building a House in Ukraine is a subject on a blog that covers the very subject.