Case Study: Successful Commercial Real Estate Purchase in Odesa for a German Investor
Client Profile
- Client: Individual from Germany
- Objective: Acquire commercial real estate in Ukraine for rental income
- Location: Odesa, Ukraine
Challenge
The client, a German citizen, sought to invest in commercial real estate in Odesa, Ukraine, to diversify their investment portfolio and generate steady rental income. Navigating the Ukrainian real estate market as a foreign investor presented several challenges, including:- Understanding local legal and financial requirements for non-residents
- Ensuring the property was free of legal or financial encumbrances
- Managing the complexities of cross-border transactions
- Laying the groundwork for potential residency through investment
Our Solution
Our team provided comprehensive support to ensure a seamless and secure transaction, guiding the client through every step of the process. Here’s how we delivered:
1. Legal and Financial Setup
To enable the client to operate legally in Ukraine, we:
- Obtained an Individual Taxpayer Number (INN) for the client, a mandatory requirement for foreign investors in Ukraine.
- Opened a bank account in a reputable Ukrainian bank, facilitating secure and compliant financial transactions for the property purchase and future rental income.
2. Property Due Diligence
To protect the client’s investment, we conducted a thorough evaluation of the target property:
- Verified the absence of arrests, debts, or legal restrictions on the property.
- Assessed the property’s market value and rental potential to ensure alignment with the client’s investment goals.
- Confirmed compliance with local regulations and zoning requirements for commercial use.
3. Transaction Management
We managed the entire purchase process to ensure efficiency and transparency:
- Prepared all necessary documentation, including contracts and agreements, tailored to meet Ukrainian legal standards and protect the client’s interests.
- Facilitated the transaction, coordinating with the seller, notaries, and other parties to ensure a smooth closing.
- Registered the property ownership in the client’s name, securing their legal rights to the asset.
4. Post-Purchase Support
After the acquisition, we provided ongoing assistance to maximize the investment’s success:
- Advised on rental strategy to attract reliable tenants and optimize income.
- Supported the client in preparing documentation for a residency permit based on their investment, in line with Ukrainian immigration laws.
Results
The client successfully acquired a commercial property in Odesa for $125,000. The investment is now generating a strong 9.2% annual return through rental income, exceeding expectations for profitability. The client is also in the process of applying for a Ukrainian residency permit, leveraging their investment to explore long-term opportunities in Ukraine.
Why This Matters
This case demonstrates our expertise in guiding international clients through the complexities of the Ukrainian real estate market. By providing end-to-end support—from legal setup to post-purchase strategy—we ensured a secure, profitable investment and opened the door to additional opportunities for the client.
Ready to Invest in Ukraine?
Whether you’re looking to diversify your portfolio with commercial real estate or explore residency options through investment, our team is here to make the process seamless and successful. Contact us today to start your investment journey in Ukraine!