Ukraine

Presentation of country

  • Country located at the south west of ex-USSR, with 43 millions inhabitants and 3 million in the capital Kiev
  • After the crisis of 2014, GDP growth recovered and is now expected at 3% for 2018 and more positive forecasts to come
  • Ukraine used to be a large and major industrial and agricultural region of previous USSR
  • Recent and massive specialization in IT and internet applications services with a lot of new start up companies from worldwide having their operating staff in Ukraine
  • Unemployment rate around 9%
  • Average net income around 300 € / month. This low level is mainly due to the very low exchange rate of Hryvnia against Dollar and Euro

Potential

  • Ukraine is currently the country from previously called Eastern Europe with highest potential
  • GDP per capita is still equivalent to 20% of european average (both EU and non EU countries) level
  • Current issues of Ukraine are more conjonctural than structural and the country has one of the most educated youth coming from universities
  • Significant increase in salary but average salary is still one of the lowest in Europe, which could forecast a real potential in the future of convergence towards west european standards
  • Because of very low exchange rate of Hryvnia, real estate price is currently,extremely low. This historical low level should boost on a recovery to come

Real estate market

  • Very active new apartment market with increase of price at 7% for the last year (Average price of 800€ / sqm but in the prime center, average price is around 2 000€ / sqm in average)
  • Because of devaluation of Ukrainian currency, real estate have shown a significant drop in price in foreign currencies (€ and $)
  • Existence of an interesting opportunitic niche : Prime apartments in city center nearby embassies, rent to expats and embassies employees at a very high level of rent, due to lack of quality products that meets the standards and tastes of expatriates rental demand
  • Expected yield: between 9 and 14%
  • Very high potential of price and rental level increases in the future

Tax & Social

  • Corporate tax : 18%
  • Personal income tax for residents : 19.5%
  • Tax rate on rents for non residents investors : 19.5%
  • Tax on dividends distributed : 5%
  • Transfer tax of real estate : 1% of acquisition price
  • VAT : 20%
  • Currency : Hryvnia

Investissements