Buying real estate abroad for citizens of the Russian Federation has become slightly more complicated today. Nevertheless, there are several ways to legally pay for the purchase of an apartment or house. It may be more challenging and take a little longer than before, but the main goal will be achieved.
Specialists at the migration agency GARANT.IN have thoroughly investigated this issue and are ready to discuss the key points.
Banking Sector
All payments go through banks, so it's essential to know what the financial organization will require from the client:
- Basis – a purchase and sale agreement in English with a translation into Russian, specifying the seller, the subject of the transaction, and the cost. The bank does not verify the correctness of the agreement regarding compliance with the legislation of the country where the transaction takes place, but all the necessary data for the transaction must be specified in the document.
Additional information – may be requested by the bank if the seller is a non-public person. Often, the bank requests confirmation of the source of funds (especially from new clients).
Methods of Payment for Purchasing Property
When choosing the optimal payment method, it is necessary to consider many factors and conditions. Lawyers from the licensed agency GARANT.IN will find a solution for each case.
SWIFT Transfer from Non-Sanctioned Banks
The most popular method of payment is a transfer from a non-sanctioned Russian bank working with the SWIFT system directly to the developer's requisites. To make the payment, it is necessary to open a foreign currency account. It's essential – the contract must indicate the full cost of the object. Often, developers understand this situation and, at the bank's request, provide additional documents – invoices, licenses, project documentation. More often than not, the payment procedure with the developer goes as follows: the client transfers the amount in currency (at the exchange rate on the day of the transaction) to the seller's account. The buyer uploads a scanned copy of the contract, endorsed by both parties, to their personal account. The transaction is completed within one day. The sending bank and the receiving bank charge a commission according to their tariffs. Some banks meticulously verify the client's identity, which extends the transaction by an additional 2-3 days.
Cryptocurrency
Another method gaining popularity in several countries. About 30% of transactions in Thailand involve cryptocurrency. This method is often used in Georgia, the UAE, Turkey, and the UAE. Unfortunately, Russian citizens can place up to €10,000 on cryptocurrency exchanges.
Cash
For example, in Georgia, cash settlements are entirely acceptable. Cash can cover not the entire transaction amount, but an advance payment. It is allowed to take out up to $10,000 per person from Russia. A family of 4-5 people can take out $40,000-50,000, which is the equivalent of a small apartment in Batumi. In Cyprus or the UAE, this is a risky method that can lead to additional investigation of the origin of funds, resulting in a delay or even cancellation of the transaction.
Payment Systems
Part of the amount can be transferred through electronic systems – "Golden Crown," Contact, or "Unistream." Each of them has its limitations on the amount. For example, through "Golden Crown," you cannot transfer more than $10,000 per month. You can pick up the transfer at one of the partner banks or withdraw the money to a foreign bank card.
Accounts in Foreign Banks
Russians can open accounts in banks in Georgia, Armenia, Serbia, Turkey, and send money from these accounts to the seller in another country. It is essential to understand that the account must be opened in person, not remotely, and after the KYC procedure (customer identity verification), the bank may refuse to open it.
Cooperation with a Russian Citizen
If the property owner abroad is a Russian citizen, by mutual agreement, payments can be made in rubles. Legal support issues can be entrusted to a licensed agency.
Sale Agreement to a Legal Entity
If a Russian citizen has a business abroad or plans to register a company abroad, the property sale transaction can be made to a legal entity, which significantly simplifies the payment process.
It is essential to understand that there is no perfect method.
The options presented have many nuances. In some cases, a combination of two or even three methods is used. It's crucial not to improvise on this issue and not try to solve everything independently – you risk only causing harm.
Schedule a consultation with lawyers from the licensed agency GARANT.IN – we will find the optimal solution for each case. With vast experience in real estate investment matters, we can develop a working strategy and address other related issues: selecting real estate within your budget, legal support, documentary processing, and support and advice at all stages.
