Buying an apartment in 2025: what documents are needed to confirm income.

In 2025, as real estate prices in Ukraine continue to rise and legislative requirements become stricter, the issue of income confirmation when buying an apartment takes on particular importance. And although at first glance this requirement may seem like just a formality, it can lead to refusal to conclude the contract or block the transaction.

The editorial team of News.LIVE explains whether a certificate of income is always required when buying an apartment and what documents are required by banks and the tax service.

When the buyer must confirm income

Since 2023, Ukraine has fully joined the international financial information exchange system (CRS). This means that all large financial transactions are checked for possible money laundering.

In the case of purchasing an apartment, the bank through which the payment is made is obliged to clarify:

• whether your funds have an official source;
• whether the purchase amount corresponds to your declared income;
• whether the transaction is not a tax evasion scheme or cash legalization.

All of this falls under financial monitoring, and therefore checks are not an exception, but a new norm.

'Despite the fact that current legislation of Ukraine does not directly stipulate a mandatory requirement for providing a certificate of income during the conclusion of a purchase and sale contract, there are nuances that both buyers and sellers should consider to avoid potential risks of payment blocking or additional checks by the state', emphasizes lawyer Yuliya Panasyuk.

Banking threshold of 400 thousand hryvnias

The financial institution is obliged to carefully check any transaction that exceeds 400,000 UAH or its equivalent in foreign currency. If the buyer pays a smaller amount, checks may occur, but they are no longer mandatory.

The presence of funds in the account does not automatically mean 'permission' to purchase. If the bank does not have confirmation that these funds were obtained from an official source, it may refuse to process the payment.

What documents are suitable for income confirmation

The list of documents depends on the source from which the buyer received the money, emphasize specialists of the legal company 'Legal Aid':

• certificate of income - if you are officially employed;
• certificate from the Pension Fund - for pensioners;
• income declaration - in case of income from entrepreneurial activity, rental, investments, dividends, winnings or insurance payments;
• inheritance certificate - for money received as inheritance;
• donation agreement - if the money was gifted by close relatives (the donor must confirm the source of their income);
• purchase and sale agreement - for example, if the funds were received after selling a car, land or other real estate;
• loan agreement with the bank - relevant when buying on credit;
• bank statement confirming the source of funds - if the money has already passed financial monitoring in the bank;
• tax service certificate - on the total amount of declared income;
• court documents - for example, if the funds were received by court decision.

Can income confirmation be avoided?

Some believe that paying in cash will help avoid checks. However, this is a misconception. The form of payment (cash or non-cash) does not affect the requirements for financial monitoring. Notaries who execute real estate transactions can also require confirmation of the source of funds. In addition, the tax service has the right to check your income regardless of the payment method.

To avoid problems, prepare documents in advance that confirm the legality of your funds. This will significantly simplify the process of buying an apartment and help avoid delays or inquiries from the bank or tax.

What are the consequences of not confirming income

The consequences can be severe. If the bank does not receive proper justification for the source of the funds, it has the right to:

• block the payment;
• refuse service;
• send information to the State Financial Monitoring.

The tax service may:

• initiate a compliance check of your expenses with your income;
• recalculate taxes;
• fine or even initiate proceedings for tax evasion.

Ukraine has joined the international financial information exchange system, which has made income confirmation when buying an apartment a mandatory procedure. Banks and the tax service check the source of funds for people who wish to make a large financial transaction to prevent money laundering and avoid tax fraud.