How to transfer money abroad after selling property in Ukraine, and what documents are required
Зміст
- What amounts can be taken out of the country, which cannot, and is there a ‘limit’?
- What documents might be requested at the border, apart from the contract of sale, as proof of the source of funds?
- In which currency can money be taken out of the country?
- Can these funds be audited abroad by foreign authorities?
- Where is the best place to keep it – in cash or in a bank? What do you need to do?
What amounts can be taken out of the country, which cannot, and is there a ‘limit’?
In accordance with Article 8 of the Law of Ukraine “On Currency and Currency Transactions” and the provisions of the Customs Code of Ukraine, an individual has the right to transport cash and other currency valuables across the customs border of Ukraine. However, a written declaration is mandatory when transporting cash in an amount equal to or exceeding the equivalent of 10,000 euros. If this threshold is exceeded, the individual is obliged to submit a customs declaration and, at the request of the customs authorities, confirm the source of the funds. This limit applies to each individual separately, including minors crossing the border accompanied by their legal representatives.
At the same time, the law does not set a maximum limit on the amount of money that may be taken out of the country. This means that a person may carry significantly larger sums, but only provided they have documents confirming the lawful origin of the funds and general confirmation of their lawful origin.
As regards non-cash transfers abroad (SWIFT, etc.), strict restrictions on cross-border currency transfers have been imposed for the duration of martial law in Ukraine. The NBU permits foreign currency transfers abroad only for specific purposes (for example, payment for education, medical treatment, maintenance payments, or the purchase of certain types of securities within e-limits, if these are open, but not for the repatriation of capital from the sale of property). Therefore, for larger sums from the sale of property, the most common legal methods remain the physical removal of cash with declaration or payment abroad using a Ukrainian card within the NBU limits (though card limits have strict monthly restrictions on cash withdrawals and payments).
What documents might be requested at the border, apart from the property purchase agreement, as proof of the source of funds
In addition to the notarised property purchase agreement, customs authorities may require documents confirming the withdrawal of cash from bank accounts.
You will need:
1. A bank statement confirming the withdrawal of cash from your own account. This is a key document for customs. The proceeds from the sale of the flat must be credited to your bank account and then withdrawn at the bank’s cash desk.
2. A bank statement showing the deposit of funds from the sale of the property.
3. A receipt for a currency exchange transaction (if you sold the property in hryvnia, deposited the funds into your account, and then officially exchanged them at a bank for euros or dollars for export).
4. Proof of tax payment (where applicable).
5. Customs declaration — if exporting an amount equal to or exceeding the equivalent of 10,000 euros.
Bank statements and other documents regarding cash withdrawals for customs purposes are valid for 90 calendar days from the date of issue.
In which currency can money be taken out of the country
You can take money abroad in either foreign currency (US dollars, euros, Polish zlotys, etc.) or in hryvnia. In practice, the fewest issues usually arise during customs checks with regard to euros and US dollars.
However, taking large sums of hryvnia abroad is not financially viable, because:
• it is difficult to exchange Ukrainian hryvnia abroad at a favourable rate;
• most European banks do not accept hryvnia;
• exchanging hryvnia outside Ukraine often leads to significant financial losses due to unfavourable exchange rates.
It is therefore best to officially exchange funds in Ukraine for euros or US dollars via your own bank account and obtain the necessary documents for the currency exchange transaction.
Can foreign authorities verify these funds abroad?
Yes, foreign authorities can verify the origin of funds imported from Ukraine.
European countries, the US, Canada and other states operate under strict financial monitoring rules, in particular AML (Anti-Money Laundering) and KYC (Know Your Customer).
If a person brings more than €10,000 in cash into an EU country, this amount must be declared at the customs office of the country of entry.
Foreign customs authorities, banks or financial institutions may request:
1. A property purchase agreement (preferably translated into English or the language of the country of residence; in some cases, a notarised translation or an apostille may be required);
2. Proof of tax payment (personal income tax and military levy, if these were payable on the sale), or documents from a notary or bank confirming that the relevant payments have been made;
3. Bank documents confirming the crediting of funds to the account and subsequent withdrawal of cash;
4. Explanation of the origin of the funds;
5. Documents confirming the acquisition of ownership of the property (e.g. preliminary sale and purchase agreement, certificate of inheritance, privatisation documents, etc.). As part of financial monitoring, banks and financial institutions may verify the entire chain of origin of the asset and funds.
In the absence of supporting documents, funds may be temporarily held for verification or temporarily restricted until the verification of their origin and the legality of their importation has been completed.
Where is the best place to keep money – in cash or in a bank? What do you need to do?
From the point of view of security and integration into the European and international financial system, it is much safer to keep funds in a bank account than to carry large sums of cash.
Risks of keeping cash:
• loss;
• theft;
• problems with declaring cash when crossing the border;
• difficulties in depositing cash into a foreign bank account.
Cash may also restrict your ability to make large payments abroad (such as buying property, a car or paying rent), as many EU countries have limits on cash transactions. Furthermore, large cash deposits in EU banks are automatically subject to financial monitoring by the relevant regulatory authorities.
The safest option is to officially transfer the funds to a bank account in Ukraine following the sale of the property, and then use non-cash transfers or legally transfer the funds abroad within the established rules.
