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ATTORNEYS-AT-LAW AND PATENT ATTORNEYS
C O N S U L T
IP&CUkrainian
law recognizes different rules and regulations for various objects of real
estate, first of all, for the land plots and other real estate objects such as buildings, premises,
apartments etc. There are different documents that verify the title of ownership for the land
plots and the objects erected on the land plot, different rules of registration, regimes of
taxations and restrictions.
Foreign nationals and legal entities are allowed to own real estate the same way as
Ukrainian nationals and legal entities. At the same time foreign individuals and legal entities
are prohibited from owning agricultural land.
ATTORNEYS-AT-LAW AND PATENT ATTORNEYS
1.
Definition of real estate
 land plots
1.1. Real Estate Objects
 other real estate objects including buildings,
constructions, houses, premises, apartments etc
 private ownership
1.2. Real Estate Rights
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2.
Land Register
[AZ]-luch/L
rights in rem:
- tenancy in common;
- easement (non-possessory interest to use real
estate owned by another person on the basis of the
agreement, law, testament or court decision);
- emphyteusis (the right to use the land-plot for
agricultural purposes);
- superficies (the right to use the land-plot for
construction purposes);
- the right of permanent use of the land plot (the
right to use the land-plot without fixed period of
time);
lease;
encumbrances of real estate
Ukrainian law provides for the establishment of a unified
register of real estate rights and their encumbrances.
However this unified register still has not been created.
For now the following registers are used depending on
the real estate object and the type of registration:
 The Transaction Register of the local Bureau of
Technical Inventory where ownership rights to a real
property (buildings, premises, apartments etc.) must be
registered;
 The State land Cadastre administered by the local
department of state land cadastre where the property
rights to a land plot must be registered.
 The State Register of Mortgages
 The Uniform Register of Prohibitions on the
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3.
C O N S U L T
ATTORNEYS-AT-LAW AND PATENT ATTORNEYS
Alienations of Real estate where the information
regarding encumbrances over real estate is recorded.
Purchase Agreement
3.1. General
Under the purchase agreement one party (the seller) shall
convey real estate (land plot, building, premises,
apartment etc.) into the ownership of the other party (the
buyer), while the buyer shall accept real estate into the
ownership and pay a certain amount of money therefore.
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3.2. Minimum Content
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Parties (name, nationality, passport data, residence
address, identification code of legal entity or tax
identification number of the person)
Date and place of signing;
Object of purchase: the precise address of real
estate, for buildings and premises: the description of
the object (the total area in square meters, the floor
or the amount of floors, the end use), for the land
plot: the cadastre number of the land plot and its
proportions
Declaration concerning encumbrances;
Purchase Price;
Warranties and guarantees;
Legal document which confirms the seller’s title of
ownership.
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3.3. Formal Requirements
3.4. Guarantees and Warranties
[AZ]-luch/L
According to the Civil Code of Ukraine the Contract
of purchase and sale of real estate (both buildings and
land plots) must be concluded in written form,
notarized and registered.
 On the date of acquisition the person – purchaser
must submit to the notary the written agreement of
his/her spouse for such acquisition that must be
notarized. The legal entity - purchaser must submit to
the notary the written decision of shareholders to
such acquisition and constituent documents of a
company.
 In case when the purchaser acquires the land plot and
the building at the same time two different purchase
agreements shall be signed: one for the land plot,
another for the building.
The seller shall guarantee:
 that he is a real owner of real estate and he has a right
to dispose of it without any restrictions
 the real estate is free from any encumbrances or third2/4
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ATTORNEYS-AT-LAW AND PATENT ATTORNEYS
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4.
C O N S U L T
ATTORNEYS-AT-LAW AND PATENT ATTORNEYS
Restrictions in acquisition
party rights (mortgage, loan, easement etc.)
 the real estate is not the object of any legal dispute,
litigation pending etc.
 there are no debts, liabilities, unpaid taxes and fees
with respect to the object of real estate
There are some restrictions for acquisition of land plots
by foreign companies and citizens.
Foreign citizens and companies may not be the owners of
agricultural land plots.
Foreign citizens are allowed to be the owners of nonagricultural land-plots:
 which are situated within the borders of the
settlements (cities, towns and villages) or
 which are situated outside the settlements but on
which are located acquired buildings.
Foreign companies are allowed to be the owners of nonagricultural land-plots:
 which are situated within the limits of settlements
(cities, towns and villages) and on which are located
acquired buildings or on which the company is going
to build objects necessary for its commercial activity
or
 which are situated outside the settlements but on
which are located acquired buildings.
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5.
Tax and Stamp Duties
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[AZ]-luch/L
State Fee for the Acquisition of Real Estate (both
buildings, premises and land plots) is equal to 1% of
real estate value indicated in the purchase agreement.
Fee to the Pension Fund for the acquisition of
buildings (premises) is also equal to 1% of real estate
value. There is no fee to the pension fund for the
acquisition of land plots.
Fee for the registration of purchaser’s ownership
in Transaction Register of the local Bureau of
Technical Inventory varies and is about 13 – 30
EURO
VAT (20%) is applicable only in case of purchase
and sale of buildings and premises if the seller is a
legal entity registered as VAT-payer and is not
applicable for the sale of residential premises
(apartments) on the secondary market by individuals.
The sale and purchase of land plots is exempt from
VAT
Speculation Tax (Seller)
For legal entities – Corporate Income Tax (general
rate 25 %), calculated as the sale price less the
balance value as of the date of sale
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C O N S U L T
ATTORNEYS-AT-LAW AND PATENT ATTORNEYS

6.
Registration of ownership
in the Land Register
7.
purchase of shares of
property companies
[AZ]-luch/L
For individuals – Personal Income Tax. The rates
vary from 0% till 5 % depending on the total area
of premises and the number of sales during one
calendar year
The real estate tax for the owners of building
(premises) still does not exist but the land tax exists
and the rates are different.
Purchaser’s title of ownership must be registered with the
local Bureau of Technical Inventory when the objects of
purchase are buildings, houses, premises, apartments etc.
This procedure usually takes about 2 weeks.
Purchaser’s title of ownership to the land plot must be
registered with the local Department of State Land
Cadastre.
There is no need to register a local company for
acquisition of real estate in Ukraine. But in some cases it
is advisable to purchase shares of a company which owns
real property instead of purchase real estate. For example
in cases when the state or municipal land plots are in longterm or short-term lease of the company. As in practice
the execution and preparation of all the documents for the
lease of municipal or state land plots takes too much time
and costs for the company. In that case the shares of the
company may be transferred according to the provisions
of applicable law depending on the legal form of the
company.
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