How to avoid fraud when investing in Ukraine: a step-by-step guide for investors

Investing in Ukraine can be profitable, but it is important to know how to avoid fraud. Learn how to check partners, properties, draw up a reliable contract, and ensure legal protection for your capital

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Investing in Ukraine is becoming increasingly attractive thanks to its developed agricultural sector, promising IT market, affordable real estate prices, and government support programs. However, as in any country, investors risk falling victim to fraudulent schemes. Below are key tips and legal tools to help protect your capital.

Read also: Everything foreigners need to know about investing in the Ukrainian economy

How to protect your investments in Ukraine: a checklist of recommendations from lawyers

1. Due diligence

Before signing any documents or transferring funds:

1. Check the company's registration in the Unified State Register of Legal Entities.

2. Review your partner's tax history and court cases in the Unified State Register of Court Decisions.

3. Request an official certificate confirming that the company has not been declared bankrupt and that no property has been seized.

💡 Tip: order a legal check through an independent lawyer — this will help you identify hidden debts, legal disputes, or fictitious activities.

Read also: Contractual pitfalls for foreign investors — Ukrainian legislation vs Anglo-Saxon law

2. Verification of the investment object

If you plan to invest in real estate:

1. Obtain an extract from the State Register of Real Rights to Real Estate.

2. Check for encumbrances, mortgages, and court prohibitions.

3. Clarify the intended use of the land plot (if you are buying land).

By the way, according to recent estimates, demand for real estate among foreign investors is growing in Ukraine – what kind of housing they choose, read at the link.

If you are investing in a business:

1. Study the statutory documents.

2. Find out who is the ultimate beneficiary and who actually controls the company.

Read also: 5 key mistakes foreigners make when moving and investing in Ukraine and how to avoid them

3. Conclude a competent investment agreement

A reliable agreement should contain:

● A clear description of the subject of the investment and its size.

● Mechanisms for controlling the use of funds.

● The parties' liability for breach of the terms.

● Conditions for returning investments or withdrawing from the project.

This document must be prepared or reviewed by an experienced lawyer to eliminate the risk of ambiguous interpretation. By the way, we have provided more detailed information about legal support for foreign investors from A to Z provided by Visit Ukraine specialists at the link.

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4. Use of accounts with payment control

To protect yourself from financial losses:

1. Transfer money only to the company's official bank accounts.

2. Avoid cash payments.

3. Use a letter of credit or escrow account, where the bank transfers the money to the seller only after all the terms of the agreement have been fulfilled.

Read also: How foreign investment in Ukraine is growing and who is investing the most in Ukrainian companies

5. Legal support for investments

It can be difficult for a foreign investor to navigate all the norms of Ukrainian legislation on their own. The best solution:

● Hire a local lawyer or law firm;

● Sign a contract for full legal support of the transaction;

● Hire a translator (especially if the documents are only in Ukrainian).

The Visit Ukraine team of lawyers provides comprehensive support to investors: from checking counterparties and preparing documents to supporting transactions and protecting interests in case of conflicts.

6. Verification of licenses and permits

Investments in certain industries (e.g., construction, energy, mining) require special permits. Be sure to find out whether the relevant licenses have been issued by the authorized authorities, how long they are valid, and under what conditions they can be revoked.

Read also: How to obtain a permanent residence permit in Ukraine through investment

7. Investment protection through international agreements

As of August 2025, Ukraine has signed more than 70 international agreements on mutual protection of investments. This allows investors to:

● Protect their rights at the international level.

● Challenge illegal actions of state authorities in international arbitration.

Fraud when investing in Ukraine can be avoided by acting systematically: checking partners, investment objects, concluding detailed contracts, and using secure financial mechanisms. And professional legal support is the best investment in your own safety.

Visit Ukraine experts will help you avoid fraud, verify agreements, and ensure the security of your investments from the moment of negotiation to the full implementation of the project. Contact us for advice to feel confident and protected!

We remind you! In 2025, Ukraine will offer a wide range of tax incentives for foreign investors. Read about what incentives are available and how to use them effectively in our previous article.

Photo: Freepik

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