Feasible to use foreign legal entity to buy apartment in Ukraine?

jl1975

New member

Member since 30 May 2015

Singapore

jl1975

06 May 2018 17:14:05

jl1975

06 May 2018 17:14:05

Singapore

Hi, I'm considering buying an apartment in Ukraine for investment, but due to some personal legal issue, I cannot own any apartment under my personal name for the next 3-4 years, and so can only buy using my company, for which I'm a director.

Is it feasible to use a foreign entity to make the purchase? After a couple of years, I would like to transfer the property to my personal name.

I'm ok with the extra paperwork, but I'm concerned with the disposable tax and VAT. It doesn't make sense to pay 17% sales tax and 20% VAT on the sales price if I have not misunderstood on how the new tax code works?

Milkman

New member

Member since 17 May 2010

Kiev

Milkman

08 May 2018 10:30:30

Milkman

08 May 2018 10:30:30

Kiev

Hi,
Are you purchasing the property though an investment account with one of the banks in Ukriane ? This would be the most straight forward way for a foreign investor to purchase an investment property. You would need all the correct paper work done through a notary e.g tax code etc...

Tesorero

Active member

Member since 20 April 2018

Tesorero

08 May 2018 13:36:53

Tesorero

08 May 2018 13:36:53

Such an interesting case . I'll ask some people about taxation.

Tesorero

Active member

Member since 20 April 2018

Tesorero

08 May 2018 15:07:01

Tesorero

08 May 2018 15:07:01

It seems that you are right about taxation. If the tax code doesn't change during next several years your company (foreign legal entity) should pay income tax ( it depends from the country of registration max 15%) and VAT (20%).

So it is reasonable to find another way of purchase, or not to sale later from legal entity.