Can a Foreigner Obtain a Mortgage to Purchase Property in Ukraine?

Foreigners can obtain mortgages for property purchases in Ukraine, though there are certain complexities and additional bank requirements involved. Key points to consider include: 

1. Residency Status:

Banks generally offer mortgages to foreigners holding a temporary or permanent residency permit in Ukraine. A residency permit enhances the likelihood of approval, as it signifies a connection to the country.

2. Type of Property:

Mortgages for foreigners are typically available for residential properties. Loans for commercial properties are less common and often come with stricter conditions.

3. Additional Bank Requirements:

Many Ukrainian banks impose extra requirements for foreigners, such as proof of official income in Ukraine or a local guarantor. Foreigners are also often required to make a larger down payment, usually ranging from 30% to 50% of the property’s value.

4. Interest Rate and Loan Terms:

Mortgage interest rates for foreigners may be higher than those offered to Ukrainian citizens, as banks view them as higher-risk borrowers. Loan terms may also be shorter.

5. Required Documentation:

Foreigners must provide a passport, Ukrainian tax identification number, proof of income, residency permit (if applicable), and documentation related to the property they intend to purchase.

6. Alternative Options:

Some foreigners consider obtaining a loan in their home country and using the funds to purchase property in Ukraine. However, this may present additional challenges related to currency control and fund transfer regulations.

Important Note:

Foreigners can obtain a mortgage in Ukraine, but it’s essential to be prepared for additional requirements and conditions from banks.

Currently, banks in Ukraine can set restrictions on granting loans for the purchase of real estate to citizens of some countries. This is due to financial, legal and geopolitical factors. Such countries usually include:

1.    Countries that are under international sanctions. This restriction is in relation to the Anti-Terrorism Financing and Anti-Illicit Activity Policy.
2.    Countries with an increased risk for Ukrainian banks - some banks may refuse loans to citizens of countries with an unstable political situation or the absence of international financial agreements.

The list of countries and restrictions may vary depending on the policies of individual banks and international sanctions, so you should contact the issuing bank directly or a lawyer specializing in financial matters for exact clarification.

Please contact us for a detailed consultation on your specific case or any other questions you may have. We’re here to help at any time.

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Kyiv, Ukraine