What is the best way for foreigner to let an apartment/house in Ukraine?

Deciding on the purchase of real estate and its further lease in Ukraine, any foreigner \ should consider the order of actions according to all legal requirements of current Ukrainian legislation. It is necessary to advise in order to care about and secure his/her future financial safety as well as prospective investments towards further monetary growth.

First of all, thanks to currently changing pricing for the apartments and houses in Ukraine, it became possible to plan such purchases by foreigners with various regular incomes. Nowadays, it means that even getting a relatively average salaries and/or profits it may still be affordable to invest own funds in Ukraine. At the same time Ukraine does not seem to create any additional complications in the means of law restrictions and/or too high taxes for receiving and processing all kinds of essential documentation for both buying and further leasing out a newly obtained flat or house at the territory of the country. As the prevailing amount of the cases witness, most of the pieces of real property bought by the foreigners in Ukraine are intended for being leased out. Their new owners do not have any plans to reside for a significantly long time period in Ukraine. Thus far, talking about real property in the largest cities of the country, they appeal by reasonable prices and excessively low barrier of the tax for real property leasing. Either appartments or houses may be rented out to local inhabitants or other foreign nationals which visit Ukraine for different purposes. Planning to lease an own piece of real estate, foreign citizen should pay attention to specifics of documentation processing and taxation structure which apply to such cases…

When organizing an actual purchase of a new flat and/or house in Ukraine, it is initially advised to talk to a professional and experienced lawyer. Such conversation will allow to avoid unnecessary complications with public bodies and possible cases of frauds, as well as to give an additional information on required tax payments prior and after buying, and other meaningful sides of the entire process.

In the future, once flat/house had been bought, a foreign national will take into account such essential regular payments as tax on the lease profit. The tax sum may change depending on changes of the official interest. For this purpose, an owner has to monitor variations as long as he/she wishes to pay legally confirmed sums within specified by law time frames. For instance, current amount of tax payment does not exceed fifteen per cent which must be submitted to the public office during forty calendar days after obtaining.

The leasing process of real estate object in Ukraine owned by the foreign person can hide specific difficulties. One of those is that it will be not possible to look for decent apartment dwellers and control such actions as conveying the keys, paying electricity, gas and water bills and so on living out of Ukrainian territory. Besides, from time to time the one must check living conditions of the flat and/or house, furniture and state of household appliances, etc. Providing a timely solutions for such questions appears from independent agents or whole agencies with specialization on renting out the real estate objects owned by thу foreign nationals in Ukraine. Holding a significant experience, expertise and useful connections within the field, such individuals or companies with a visible success can meet both expectations and requirements arising from residing out of Ukraine letter. Looking for more efficient solutions, it may be helpful to contact a private agent in a direct manner, as for many cases he acts as a professional lawyer too. Therefore, he/she will provide a necessary expertise along with avoiding spending time for evaluation of one or another agency. The matter of safety and reliability means a lot at this stage, especially if the property owner does not have an ability to control actions of the agency from other country. Organizing the all sides of leasing process for apartment and/or house, its owner should collect some general information and feedbacks on the operational activities of either agent or the agency he/she has intention to work with. The set of data usually includes different characteristics and overviews, its reputation and reviews from various catalogs and online forums; recommendations and feedbacks from permanent and new clients who act as letters and householders, depending on their interests, and so on.

When positive information had been collected and feedbacks met at least minimal requirements, it might be sensible to organize a legal side of the relationships with selected agent or entire agency if this is the case. Such side as writing and signing the cooperation contract is normally controlled by the existent regulation system of Ukraine. However, it must be thoroughly checked and verified by the foreign owner of the real estate as his/her future agent will act as official representative for all the financial and legal purposes. As experience proves, a written agreement may clarify a significant number of points in the process of renting out.

Such a contract between foreign national and local agent will definitely carry a legal power for the both sides. In addition, for those cases when such an agreement will possess the notary’s validation a responsible notary will be obliged to provide all the essential information about the agreement to official tax address of responsible for the leasing of real estate person.

Rigorous abidance of the chain of requirements along with following all the existent law restrictions and rules in Ukraine, as a rule, puts the whole process of purchasing and leasing out a real estate onto rather uncomplicated basement, where even the foreign citizen does not experience any difficulties in Ukraine. In such a way, all processes of buying and renting out are carried in the most effective, legal and rewarding way for all the participants.

Author: Kateryna Bovan