Who can buy property in Ukraine?

Foreigners are generally permitted to purchase real estate in Ukraine, including residential and commercial properties. However, they are prohibited from owning agricultural land until such restrictions are lifted by a national referendum.

The ongoing conflict has introduced complexities to the real estate market. Despite these challenges, some foreign investors continue to show interest in Ukrainian properties, particularly in cities like Kyiv. Notably, citizens from countries such as Turkey, China, the United Kingdom, and Japan have been active in the market, focusing on commercial real estate like street retail spaces, standalone buildings, and land plots.

For foreigners considering purchasing property in Ukraine during this period, it is essential to conduct thorough due diligence. This includes verifying property titles, understanding zoning laws, and assessing any potential risks associated with the ongoing conflict.

Do the research

Investing in Ukraine's real estate market during the ongoing war with Russia comes with significant risks but also potential long-term rewards. The conflict has led to economic instability, property damage, and uncertainty, making short-term investments highly unpredictable. However, for those willing to take a long-term perspective, Ukraine’s eventual reconstruction could create unique opportunities. Historically, post-war recoveries have driven significant real estate appreciation, and Ukraine is likely to receive international aid, foreign investment, and government incentives to rebuild key cities and infrastructure. Cities like Kyiv, Lviv, and Odesa, which remain economic and cultural centers, could experience a surge in demand once stability returns. Additionally, Ukraine’s strategic location, strong agricultural sector, and aspirations for closer ties with Western economies may support future economic growth, positively impacting the real estate sector. Despite these possibilities, investors must carefully evaluate legal protections, property rights, and security concerns before entering the market, as the situation remains highly volatile.

Below are some sought-after destinations for real estate investment in Ukraine:

• Kyiv - As the capital and economic center of Ukraine, Kyiv has historically been a prime location for real estate investment. Despite the challenges posed by the ongoing war, the city remains a vital hub for business, culture, and governance. While certain areas have been affected by the conflict, demand for residential and commercial properties is expected to surge in post-war recovery, with infrastructure redevelopment and foreign investment playing key roles in revitalization.
• Lviv - Located in western Ukraine, Lviv has been relatively insulated from the direct impact of the war, making it one of the most stable real estate markets in the country. The city's European architectural charm, growing IT sector, and increasing population due to internal migration have kept demand strong for both residential and commercial properties. Lviv’s proximity to the EU further enhances its appeal to investors looking for long-term growth opportunities.
• Odesa - As a major port city on the Black Sea, Odesa has historically been a key player in trade, tourism, and logistics. While the war has disrupted commercial activities, Odesa remains strategically significant, and its real estate market is likely to benefit from future maritime trade recovery. The city’s coastline and vibrant culture continue to make it an attractive destination for both local and foreign buyers.
• Dnipro - An important industrial and economic center, Dnipro has a history of attracting investments in manufacturing and infrastructure. The real estate sector in Dnipro, though affected by the war, could see growth in the long term as Ukraine rebuilds its industrial base. Investors with a high-risk tolerance may find opportunities in commercial and residential developments, especially as businesses return and expand operations.
• Kharkiv - As Ukraine’s second-largest city and a major educational and industrial hub, Kharkiv has significant long-term investment potential. The city has suffered substantial damage due to the war, but its strategic importance means it will likely be a focus for reconstruction efforts. Investors willing to take a long-term view may find opportunities in real estate redevelopment, as demand is expected to rise once stability returns.
• Vinnytsia - Vinnytsia has gained attention as a growing regional center with a stable economy and increasing migration from other parts of Ukraine. Its relatively lower exposure to conflict makes it an appealing choice for investors looking for residential or commercial properties in a safer environment. The city’s infrastructure development and expanding business sector support a promising future for real estate investment.

Where to find properties online:

• https://www.olx.ua/
• https://dom.ria.com/

Financing

Foreign nationals can obtain mortgage loans in Ukraine, though the process may differ from that for Ukrainian residents. Ukrainian banks offer mortgage financing to non-resident buyers, but these loans often come with stricter terms and conditions. Foreign buyers are typically required to make a higher down payment, with some lenders asking for a minimum deposit of 25% or more. Additionally, lenders will assess the buyer’s financial stability, requiring proof of income, employment status, and a good credit history. Interest rates for foreign buyers may vary based on the financial institution and the buyer's profile.

Due Diligence and Sales Contract 

Conducting thorough due diligence is a critical component of the real estate transaction process to ensure the property's legal status and identify any potential issues. This process involves verifying the property's title to confirm the seller's ownership and checking for any encumbrances, such as mortgages, liens, or legal disputes that could affect the transaction. Additionally, it's essential to review zoning regulations, building permits, and any environmental concerns that may impact the property's value or intended use.

Once due diligence is satisfactorily completed, the parties proceed to draft a sale and purchase agreement. Under Ukrainian law, this agreement must be executed in writing and notarized to be legally binding. The contract should contain essential provisions, including details of the parties, a specific description of the property, the purchase price, and any other negotiated terms. The parties also generally execute an instrument of transfer and acceptance in relation to the real estate.

Following notarization, the transfer of ownership must be registered with the State Register of Proprietary Rights to Immovable Property, managed by the Ministry of Justice of Ukraine. This registration is a mandatory condition for the validity of the transferred title. The notary certifying the sale and purchase agreement typically handles the submission of the necessary documents for registration.

Property Buying Costs and Taxes in Ukraine