Investing in Ukraine's Real Estate Market: Properties for Sale and Profit (2024)

FAQs

Is property in Ukraine a good investment? ›

Thus, real estate in Ukraine currently attracts investors with low prices. Ukrainian housing also has high growth potential and tax advantages. At the same time, by investing in foreign real estate, you can reduce risks, diversify your portfolio and make a significant profit.

Foreign citizens can purchase real estate in Ukraine both for cash and using banking money transfer. To open an individual bank account only tax id and passport translated in ukrainian language are needed. The deal for the purchase of real estate always takes place at the notary office.

Immovable property tax is levied on real estate, both commercial and residential, and it is paid by both companies and individuals. The land is excluded from the tax. The tax rate can be set at most at 1.5% of minimum wage for every square meter of the property.

Western Ukraine

A decent wooden house will sell for less than $50,000. For example, a house of 140 square meters with three bedrooms in Verhovyna in Ivano-Frankivsk Oblast, some 620 kilometers from Kyiv, costs $48,000. The average price of a house in Zakarpattya Oblast in the west is $86,000, according to address.ua.

Due to significant fall of prices in the real-estate property market, buying real-estate in Ukraine today can be an attractive investment. In order to choose a suitable property, minimize risks associated with the deal, avoid fraud and save on taxes in future, you should perform proper planning and due-diligence.

Can you make $1 million in your first year selling real estate? It can be done. In fact, it has been done.

The 2% rule is a rule of thumb that determines how much rental income a property should theoretically be able to generate. Following the 2% rule, an investor can expect to realize a positive cash flow from a rental property if the monthly rent is at least 2% of the purchase price.

New York, Los Angeles, and London remained the top places with the highest sales in real estate in 2022. While ultra-prime properties, worth $25 million or more, saw higher sales in New York and London. In 2024, the luxury real estate market is expected to improve.

U.S. citizens do not require a visa as long as their length of stay in Ukraine is less than 90 days. Individuals requiring a visa must obtain it at a Ukrainian Embassy or Consulate before arriving in Ukraine.

Ukrainian law recognizes private ownership of real estate. Foreign citizens and legal entities may own real estate. However, foreign individuals, legal entities and joint ventures are prohibited from owning agricultural land in Ukraine, until such restriction is lifted by a referendum.

Who owns real estate in Ukraine? ›

Ownership title to real estate There are the following types of real estate ownership: • State ownership Certain real estate objects are owned by the state of Ukraine (land for nuclear energy and the space system; military land; the land under state railways, objects of state ownership of air and pipeline transport; ...

property tax, which is up to 1.5% of the minimum wage established by law on 1 January of the tax year, per 1 square meter of the property; land tax, which is up to 1% of land normative monetary value; unified tax (tax accrued on income from entrepreneurial activity).

Ukraine's standard CIT rate is 18%. Starting from 2024, the general CIT rate for the banks is increased to 25%. Withholding tax (WHT) at a rate of 15% applies to the majority of passive income payments to non-residents, unless an exemption or reduced rate is provided under a DTT. Ukraine has 71 effective DTTs in place.

Income Tax in Ukraine

In Ukraine, for the 2023 tax year, both residents and non-residents are subject to a flat personal income tax rate. This rate is set at 18% for various types of income, including salary, other benefits under employment and civil agreements, foreign income, and other income categories.

The average price of a one-bedroom apartment in Kyiv is USD 93,168. In Lviv region, the price of a one-room apartment is USD 69,680, and in Zakarpattia region - USD 53,401.

Foreigners can buy real estate in Ukraine without any problems. However, this process has certain specific features. First of all, a foreigner should distinguish between two real estate markets: The primary market, i.e. apartments and houses in new buildings.

A family of four estimated monthly costs are 1,669.3$ (66,179.9₴) without rent. A single person estimated monthly costs are 481.2$ (19,076.2₴) without rent.

Sponsors of Ukrainian guests on a Homes for Ukraine visa are eligible for a monthly payment from the UK government as a thank you for hosting. Sponsors will receive £350 a month during the first 12 months of their guests' stay.