How to sell commercial real estate in Ukraine - advice from a real estate expert

Commercial real estate Are land plots, squares, building, premises, which are used to generate income from production, investment activities, rent or lease. According to the analytical company UTG, volume of the Ukrainian commercial real estate market in 2021 amounted to more than 3,5 billion US dollars, but these figures remain relevant today.

The article discusses the types of commercial real estate, a list of the necessary documentation for the sale is given, the amounts of taxes paid by the seller and the buyer are indicated. Real estate expert Alexander Tsvigun will give recommendations on finding a prospective buyer, the procedure for concluding a deal.

How to sell commercial real estate in Ukraine?

Despite the economic crisis and coronavirus infection, the purchase of commercial real estate in Ukraine is a demanded service. Only buyers have become more demanding about the acquired objects, their location, size, year of commissioning, level of equipment, nearby infrastructure.

When buying a hairdresser or beauty salon, the main emphasis is on the demand for services.. Therefore, it is better to choose premises in the central parts of the city., in train stations with a large passage of people. Service station, workshops, tire fitting, car wash is located in areas with convenient access, passing a centralized water supply. Office premises are selected, depending on the direction, business features and security. They should be close to public transport stops.

Types of commercial real estate

The main purpose of commercial real estate is to generate regular income through conducting certain activities or leasing objects.. Therefore, entrepreneurs invest in profitable areas of activity, change the direction of the business, sell commercial or other real estate, buy new commerce.

Commercial real estate includes:

• office buildings, premises in business centers, administrative offices;
• industrial enterprises, industrial premises, workshops;
• logistics and storage facilities of a modern type and warehouses, storage-adapted;
• hotels, hostels, dorms, campsites, boarding houses, motels, tourist bases, mountain complexes;
• large and small retail outlets, wholesale and small wholesale bases;
• pavilions, halls for fairs, gambling houses, casino;
• restaurant facilities, Cafe, eateries;
• car washes, Service station, tire service, car parks;
• saunas, boiler rooms, boiler rooms, laundry fast dry cleaners;
• agricultural enterprises, farms;
• medical, cosmetic centers, hairdressing salons;
• billiard, golf and bowling centers, sports grounds, gyms, swimming pools;
• ground and underground garages, covered parking lots;
• land, pai, agricultural land, pastures, ponds.

Sometimes the same commercial real estate under the direction of a new owner brings better results.. It depends on proper planning and management., purchases of innovative equipment, use of property management.

List of required documents

Individual entrepreneurs, individuals sell commercial real estate in Ukraine, if you need money urgently, business does not generate income, for other reasons. For the successful alienation of commercial property for legal entities and sole proprietors, documents will be required, slightly different.

Documents for the sale of commercial objects by a legal entity

For the sale of legal entities. a person needs to prepare a package of documents, consisting of:

• title deed;
• document on state registration of a legal entity;
• document on the assigned TIN;
• the charter of the enterprise with amendments to it;
• articles of incorporation as amended;
• extracts from the register of ownership rights to the alienated commercial property;
• technical passport;
• protocol and order on the appointment or election of a director (chairman of the board);
• director's passport or passport and a certified power of attorney for the representative;
• individual stamps;
• certificates on the types of activities of the enterprise (from the regional statistical office);
• documents on the ground;
• certificates on the absence of tax lien and the absence of prohibitions on alienation;
• protocol on the sale of an immovable commercial property with an indication of the selling value.

Documents for the sale of commercial objects by an individual

For the sale of real estate of a commercial nature nat. face or FLP (FOP) a package of documents is required, consisting of:

• certificate of ownership;
• technical passport for the object and document for land;
• extraction from the State Register of encumbrances for each owner, if the seller purchased the property, being married;
• extract from the register of prohibitions on alienation;
• passports and TIN of all owners (spouse(and));
• marriage registration certificates, relevant documents, if the marriage is dissolved or the death of the wife has occurred, husband;
• consent statements (wives, husband) for the alienation of an immovable object, jointly owned;
• birth certificates of children, who own real estate;
• approval of the board of trustees for the alienation of real estate in the interests of young children or disabled citizens, owning;
• applications-refusals from their share of other members of shared ownership.

How to quickly sell commercial property?

The search for a potential buyer of commercial real estate must be organized using all available methods.. You can search for a buyer yourself with the help of business contacts and acquaintances., various directories, social media ads, newspapers, on TV, on transport. In this case, the process may be delayed.. If urgency is required, it is better to use the services of professional realtors from real estate agency. They have a wider database, professionalism, an experience.

Tips for Selling Commercial Housing

To alienate commercial properties on favorable terms, you need to bring them into the appropriate presentation. An economy-level office without rubbish and dust looks more attractive, than dirty. You can hire employees of a cleaning company to clean, the income from the sale will pay off the costs. In commercial real estate in a new building, you can perform inexpensive redecoration. The price with finishing will be higher. Determine the advantages of the object of sale, staying at a convenient location, modern communications, advanced security system, developed infrastructure.

Decide on the value of the price. This requires:

• analyze the market;
• consider similar options;
• find out the prices per square meter for similar properties in the same area of ​​the city.

Advertising in commercial publications with many photographs from different angles will help you find a likely buyer.

Commercial real estate purchase and sale taxes

The purchase and sale of real estate commercial property requires the payment of state taxes by both parties.. At the same time, the alienation and acquisition of commercial objects differs from transactions with residential premises..

Related article: Real estate taxes in Ukraine

Seller taxes

The tax on the sale of commercial real estate by the seller consists of the payment:

• 1% state fees;
• 5% personal income tax, FLP or YUL;
• 1,5% military collection.

If the seller has owned the property for less than 3 years or has sold several properties within one year, he has to pay besides basic taxes 5% income tax.

For sellers, non-citizens of Ukraine, payment required:

• 1% state fees;
• 18% personal income tax, FLP or YUL;
• 1,5% military tax levy.

Payment of taxes by the buyer:

• 1% state fees from the cadastral value of the object;
• 1% to the Pension Fund;
• administrative fee, responsible for the re-registration of ownership of the purchased real estate of a commercial nature.

Tax burden is reduced for liquidators of the Chernobyl accident, veterans who participated in hostilities and their families, disabled 1-2 city.

Conclusion of a purchase and sale transaction

The sale of commercial real estate in Ukraine requires careful preparation. To the parties, alienating and buying an object, need to agree on the price, prepare the required documentation. Lawyers need to analyze the documentation, and the notary should familiarize himself with the draft agreement. If all checks pass, then the conclusion of the transaction will take less than one hour.