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Ukraine: Guide to Buying Costs and Procedures

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Last Updated: Mar 23, 2007

Buying costs are low in Ukraine

How high are realtors’ and lawyers’ fees in Ukraine? What about other property purchase costs?

Transaction Costs
Who Pays?
Pension fund levy 1% buyer
Registration fees 0.01% - 0.05% buyer
Real Estate Agent's fee 0.5%
0.5% 		buyer
seller
Agent's Commission 3% - 5% seller
Costs paid by buyer 1.51% - 1.55%
Costs paid by seller 3.5% - 5.5%
ROUNDTRIP TRANSACTION COSTS 5.01% - 7.05%
See Footnotes
Source: Global Property Guide

How difficult is the property purchase process in Ukraine?

There are no major restrictions on ownership of real estate (aside from land) by foreign individuals. 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).

The buyer should verify the seller’s title by reviewing the title documents. Title documents should include:

  1. a certificate of privatization, or purchase contract (usually notarized), or evidence of inheritance or gift;
  2. a certificate from the Bureau of Technical Inventory (BTI) stating that the seller is the owner and citing the BTI registration number; and
  3. a certificate from the Unified Register of Prohibitions on Disposal of Immovable property showing the absence of mortgages, arrest or other encumbrances.

The passport of both parties is also important. The notary also requires that the state duty and pension fund fee have been paid. After the purchase contract is executed before a notary, the buyer should then apply for the transfer of the property to be registered at the appropriate BTI office. Transfer only becomes effective when sale purchase documents are registered.

 


Footnotes to Transaction Costs Table


The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ 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 UAH75 (€11.50) at state notary and UAH200 to UAH400 (€30 - €62) at private notary. The buyer must also obtain certificates from the Bureau of Technical Inventory and the Center of State Land Cadastre that the property is duly registered. All of these adds to the complexity of purchase process but not much to the cost. Registration and other fees should not exceed 0.05% of the property value

REGISTRATION AND OTHER FEES
FEES €
Notary's fees 30
Registration fee 4
Certificates and evaluation 88
Total 122

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.

VAT:
The sale of real estate is subject to 20% VAT on the contract price of the property. However, sale of land alone and residential units (except for the first sale) is not subject to VAT.

 

Ukraine - more data and information

Your Comments

posted by Irena | 2008-02-24

I think your information is incorrect. The buyer usually pays the 3-5% Agents Commission in Ukraine.

posted by our Editor: Matthew Pollock | 2008-02-24

We'll look into this, Irena. Thank you

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