Payment by Invest-account and foreign currency

Member since 03 February 2020

MCTrustMember03 February 2020 20:49:03

Hello ExPats

I would like to know if somebody has experience to buy real estate under the new law of invest account.

Foreign buyer make Invest account in foreign currency and Seller make a account at the same bank in the same foreign currency. Buyer sent money from foreign country and in foreign currency to his investaccount.

At the day of the contract the buyer sent the money from the investaccount to the foreign currency account of the seller. And one minute later the seller take all the money in foreign cash from his account.

Under the law is possible but the banks are quit complicate to give in once 100.000 USD in cash. Furthermore they like to have a letter of my foreign bank how i did the money. I mean how my bank should know this.

I find only one bank who already try to did it - Idea-bank. But they break the deal because the foreign buyer could not explain good enough how he did the money in his country.

I have 2 other banks. Both are asking for documents how I did the money. Here I use 3 Banks and sent my money from one bank to the other. I mean I really do not like to open my tax-reports of the last 10 years and translate all this documents.

Maybe somebody has some experience and know a bank which is relaxed and has some experience.

Thanks

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Sanja7 Active member

Member since 04 October 2017

Sanja7Active member04 February 2020 11:23:05

My best recommendation is to make the deal in UAH through a bank transfer in Privatbank. And from abroad you use for example transferwise or similar to you PB UAH account. Later you can easily proove that you have bought an apartment for the money and the bank will check your contract and they will be satisfied.

I fully understand some buyers want cash in USD so the first option will not be possible. Another option is to try to get out the money in cash from an ordinary USD account but it could risky walk around with all that money on the street. You could arrange the deal with notarius at the bank directly if all parts agree on that. This could be to your favor. Check with the bank in advance and you may need to pay some commission, likely 1%.

About the investment account, it feels a bit complicated like you say and nobody knows for sure how it works. You may simply have to some trial and error on this question and create your own experience and share it with us here on expat

MCTrust Member

Member since 03 February 2020

MCTrustMember04 February 2020 16:10:46

Here some results. Maybe someone has a good advice or warning.

Ukreximbank: They like to try it by invest account. I have to prove how I did the money but it seems that they will make it easy. To withdraw 100.000 EURO they have no problem.

Oschadbank: They offer that I sent the money directly by swift to an EURO account of the owner. It will be balanced on the seller-account once he show the buying-selling contract. Withdrawing no problem - proofment seems easy.
The only problem is that swift need like 1 week and the owner wants first the money to agree for register changing. I need to trust Oschad that they do not give him the money. Otherwise I need to fight the money back in court.

PUMB (The First Ukrainian International Bank): They offer it in the same way like Oschadbank. I will go ahead but this are the three options.

The Schengen-Banks (Raiffeisen Aval, Ukrsibbank, ... ) do not like to withdraw it and the other Ukrainen Banks do not have the cash to withdraw it. The proofment where I got the money from seems also more hard.

But you have for sure show the proofment in advanced. Otherwise you have the big risk that they sent the money back.

This are my first results. Who can say something about?

Thanks to all

Sanja7 Active member

Member since 04 October 2017

Sanja7Active member05 February 2020 09:12:20

If you are not planing to sell the apartment and move the money back out of UA in the nearest future I would probably go for the Oschadbank option where you send the money direct to the owner. It is a little risky and nervous but if you feel confidence with the owner and the bank it should be alright.