How to Buy a Property in Kiev
|Pension fund levy||1%||buyer|
|Agent´s Commission||3% – 5%||seller or buyer|
There are no major restrictions preventing foreigners from buying real estate in Kiev. Properties such as apartments and traditional houses are readily bought in Kiev and other Ukrainian cities. However, there are strict restrictions on foreigners buying land. The Land Code of 2002 allows foreign individuals and legal entities to own non-agricultural land in Ukraine, and non-residents can also lease land for a maximum of 50 years (all land purchase and lease contracts are subject to state registration).
As a buyer, it is strongly encouraged you review ALL documents (Title) pertaining to the ownership of the property. These Title documents should include:
- a certificate of privatization, or purchase contract (usually notarized), or evidence of inheritance or gift;
- an ownership certificate stating that the seller is the owner and citing the registration number; and
- a certificate from the Unified Register of Prohibitions on Disposal of Immovable property showing the absence of mortgages, arrest or other encumbrances.
Note: A certificate from the Bureau of Technical Inventory (BTI) stating that there was no changes in the property’s initial floor planning is NO LONGER REQUIRED.
Passports from both parties are also required. The notary requires that the state duty and pension fund have been paid. Once the sale purchase documents are registered, the transfer becomes effective.
Transaction costs include all expenses accrued of buying and then re-selling a property — notary fees, state duty, taxes, real estate agent fees, etc.
Registration and other fees:
The buyer typically pays registration, notary and other fees but it can be agreed among parties. Notary fees range from UAH2000 to UAH4000 (€200 – €400). Registration and other fees should not exceed 0.05% of the property value
REGISTRATION AND OTHER FEES
|Certificates and evaluation||80|
State duty: The law is silent on who pays for state duty. However, it is common practice to equally split the cost between the buyer and the seller. State duty is paid to the notary. Agent´s commission: Used lower rate since the more expensive the property, the more you could bargain to pay a lower agent´s fee. Typically, it is 5% of the sold price. Taxes: For Sellers, if a second property is sold within the same calendar year OR, if a property being sold was owned for less than 3 years, a 5% income tax is charged for residents and 17% for non-residents. *For first time Sellers and those selling a property that has been owned for over 3 years, NO TAXES are paid.
For properties for sale in Kiev, visit: http://www.allstarkievrealty.com/en/apartment-sale-kiev.html