How to legally take money abroad after the sale of real estate
In order to preserve foreign currency reserves after the start of a full-scale invasion, the National Bank of Ukraine has introduced restrictions on transferring funds abroad. Since many Ukrainians have left for other countries and decided to sell their real estate in Ukraine, given the introduced withdrawal limits, they may face difficulties in how to take out money from the sale of housing. In this article we will consider what are the ways of withdrawal of funds abroad, what documents may be needed to confirm the legality of income and how to avoid problems with the tax authorities and other regulatory bodies.
Proper preparation for the sale of real estate
If the seller of real estate plans to take the money from the sale abroad, it is important to do everything officially and correctly from the very beginning. The sale and purchase agreement must be drawn up in accordance with the requirements of the current legislation of Ukraine and notarized.
It is equally important to make a transparent payment. It is much easier to confirm the legality of the funds if the buyer pays via bank transfer. The contract should specify the real amount: there are situations when the contract reduces the value of the real estate in order to reduce tax liabilities, but this should be rejected.
Payment of taxes and declaration of income
After the successful sale of an apartment, the seller must pay taxes: 18% personal income tax and 5% military levy. If the apartment was owned for more than 3 years and this is the only sale during the year, the seller does not have to pay personal income tax. Non-residents pay personal income tax regardless of the period of ownership of real estate. An important point is that when paying taxes, the relevant receipt must be obtained and retained.
After receiving money for the sale of an apartment, it is necessary to declare the income in a tax return, which is filed once a year. This makes it much easier to confirm the source of origin of the funds to foreign banks. A copy of the sale and purchase agreement and a tax receipt will be required for declaration.
Taking money from the sale of housing abroad: current methods
Despite the restrictions imposed, legally take money out of Ukraine to another country after the sale of real estate is quite realistic. And it can be done in different ways.
Bank transfer
The most transparent way is to transfer money through a Ukrainian bank. What you need to do for this:
Open a foreign currency account in any bank in Ukraine.
Show documents that confirm the source of origin of funds. This can be a contract of sale of an apartment or a tax return.
Make a transfer of money to a foreign bank account. The maximum amount of such a transfer is equivalent to 100 thousand UAH per month. It also does not hurt to check in advance with the foreign bank whether they support such operations.
It is important to note that the National Bank has also introduced restrictions on the use of funds from cards of Ukrainian banks. The maximum amount of money withdrawal from ATMs abroad is 12,500 UAH per week, and up to 100,000 UAH per month.
Cash export
When taking cash abroad, it is important to comply with the requirements of the customs legislation of Ukraine. The maximum amount of cash that can be exported without declaration is 10,000 euros. If you need to take out more, you will have to declare the entire amount. In this case, it is obligatory to have documents confirming the source of origin of the funds. Lawyers note that there is no point in presenting a contract of sale to customs officers. It is better to take with you a receipt for the withdrawal of money from the real estate seller's account.
In order to legally export an amount of more than 10,000 euros and at the same time avoid declaration, you can do it with the help of relatives. Money can be exported not only for adults, but also for children. A family of five people (dad, mom and three children) can take out 50,000 euros at a time (10,000 euros for each person). If the amount is higher, a declaration must be made. Neither taxes nor customs duty are payable on the declaration.
Taking a large amount of cash abroad is a fairly simple procedure, but at the same time not entirely safe, as there is a risk of money theft.
Cryptocurrency
Another way to transfer money from the sale of housing abroad is to make a transfer via cryptocurrency. Unlike traditional currency transfers, cryptocurrency transfers are virtually unlimited, meaning that you can transfer any amount of money, and almost instantly. Cryptocurrency transfers are carried out in the blockchain network, which is not controlled by the authorities.
When transferring cryptocurrency in the blockchain network, you will have to pay a commission, which does not depend on the amount of the transfer. Usually, the blockchain commission is about 25-35 dollars, so it is not profitable to transfer small amounts in bitcoins.
All cryptocurrency wallets and exchanges allow you to transfer assets to other accounts. This process is similar to bank transfers from card to card: you just need to specify the amount of the transfer and the recipient's account number. It is extremely important to enter the account number carefully, as it is impossible to cancel an operation in the blockchain.
The cryptocurrency itself can be purchased through P2P platforms or for cash in one of the crypto exchanges. These methods are quite popular, but they are in a gray zone, so all responsibility for the transaction lies with the user. An alternative option is to use a cryptocurrency wallet, which allows you to deposit directly from your bank card in euros or SEPA details. You can then use these funds to purchase bitcoins, USDT or convert them into other cryptocurrencies. Cryptocurrency wallet allows you not only to transfer, but also to spend cryptocurrency in stores, make payments online, withdraw cash from ATMs that are equipped with NFC-module.
Withdrawal of funds abroad after the sale of real estate in Ukraine is a complicated process, in which there are many nuances. To avoid trouble, it is best to immediately seek help from specialists. Mayak realtors will help to sell an apartment in Kyiv or Kyiv region at a favorable price, and lawyers of the agency will correctly prepare documents and familiarize you with all the nuances of legal withdrawal of money abroad.
