Support for Foreign Investments in Ukraine: How to Protect a Foreign Investor’s Capital
Ukraine remains an attractive market for foreign real estate investment. Relatively low prices, a wide selection of objects — from new-build apartments to commercial real estate, and growth potential — all attract investors from Europe, the USA, the Middle East, and Asia. According to analysts, in 2024–2025, real estate deals were made by buyers from the UAE, Slovakia, Turkey, Italy, the USA, Greece, Israel, and Romania. However, a foreign investor faces a number of specific challenges: differences in legal systems, language barriers, and complex procedures for opening accounts and registering ownership rights. Without professional support for foreign investments, even a promising deal can turn into a long-term lawsuit or the total loss of invested funds.
Legal Foundations of Foreign Investment in Ukraine
The investment activities of foreign citizens and companies in Ukraine are regulated by a number of legislative acts. Key among them is the Law of Ukraine “On the Regime of Foreign Investment,” which defines the specifics of the foreign investment regime in Ukraine. This Law establishes the concepts and types of foreign investments, the subjects of foreign investment, as well as the national regime for investment activity. According to current legislation, foreigners have the right to buy both commercial and residential real estate in Ukraine. Apartments, houses, and commercial objects can be freely purchased by foreign citizens without restrictions. However, there are certain restrictions on the acquisition of land plots: foreigners cannot buy agricultural land. At the same time, they can purchase land plots for the construction of residential real estate or for commercial use within settlements.
Key Stages of Foreign Investment Support
Professional legal support for foreign investments covers all key stages — from preliminary analysis to title registration and further asset management:
- Preliminary consultation and selection of the optimal investment structure — lawyers analyze the investor’s goals and recommend the optimal form of investment: as an individual or through a legal entity (LLC). Foreigners often choose the LLC model, as it allows for obtaining additional opportunities for investment immigration.
- Opening a bank account and obtaining an identification code — a foreign investor must open an account in a Ukrainian bank and obtain an individual tax number (TIN). This involves submitting a package of documents, including a passport and confirmation of the source of funds.
- Comprehensive object verification (Due Diligence) — before concluding the deal, a thorough check of the object’s legal status, presence of encumbrances, seizures, and lawsuits is carried out. For new builds, developer permitting documentation, land plot rights, and compliance with State Building Codes (DBN) are additionally checked.
- Development and analysis of contractual documentation — lawyers prepare or meticulously analyze the draft purchase and sale agreement or investment contract. Special attention is paid to mechanisms for protecting the investor’s interests, payment procedures, and object transfer timelines.
- Support for deal conclusion and settlement — lawyers ensure the legally correct signing of the agreement, verify the authority of the signatories, and support financial settlements.
- Title registration — upon completion of settlements, ownership title is registered in the State Register of Proprietary Rights to Immovable Property.
- Tax support — consultations on real estate income taxation and assistance in filing tax declarations.
Investment support for foreign clients from GlobalBud Ukraine provides a full cycle of services — from consultations to title registration and further asset management.
Specific Risks for Foreign Investors
- Legal system differences — Ukrainian legislation differs significantly from European or American law, which can lead to misunderstandings and errors.
- Language barrier — all documentation is kept in Ukrainian, requiring professional translation and interpretation.
- Currency restrictions — although Ukraine is gradually liberalizing currency legislation, certain restrictions on transferring funds abroad still exist.
- Fraud risk — foreign investors are often a more vulnerable target for unscrupulous sellers.
- Tax implications — taxation of real estate income for foreign citizens has its own specifics.
- Absence of automatic right to residency — purchasing real estate in Ukraine does not give a foreigner an automatic right to obtain a residence permit.
Comprehensive real estate audit for foreign investors allows for identifying all hidden risks before concluding a deal and ensuring the legality of all procedures.
How to Choose a Reliable Partner for Foreign Investment Support
- experience with foreign clients — availability of successful cases supporting investments for foreign citizens and companies;
- foreign language proficiency — ability to communicate in English or the investor’s native language;
- comprehensive approach — combining legal and engineering expertise;
- understanding non-resident specifics — knowledge of currency, tax, and immigration legislation;
- transparency — clear understanding of the cost and scope of services.
Legal audit (Due Diligence) of real estate — this is the first and most important step for any foreign investor planning to invest funds in Ukrainian real estate.
Frequently Asked Questions
Can a foreign citizen buy an apartment in a new build in Ukraine?
Yes, foreign citizens have the right to purchase apartments in new buildings on the same terms as Ukrainian citizens. However, it is important to thoroughly verify the developer’s permitting documentation and the legal purity of the object, as risks for a foreign investor are higher due to less awareness of local legislation.
Does purchasing real estate give the right to obtain a residence permit in Ukraine?
Purchasing real estate in Ukraine does not give an automatic right to a residence permit. However, real estate acquisition can be a significant argument for submitting an application for a temporary residence permit if other grounds exist. Foreign investors can obtain a temporary residence permit by making an investment in the Ukrainian economy of at least 100,000 euros.
What taxes does a foreign investor pay when buying real estate in Ukraine?
When buying real estate, a foreign investor pays the same taxes as Ukrainian citizens: state duty for title registration, personal income tax (upon sale). When leasing real estate, income is taxed at an 18% personal income tax rate plus a military levy.
