From its affordable cost of living, to its vibrant cities and picturesque landscapes, Ukraine offers an appealing balance of modern amenities and historical charm.
In this guide, we’ll walk you through everything you need to know about relocating to Ukraine from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
TaxPilot recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
Ukraine follows a residence taxation model. If you are resident, you will pay tax worldwide incomes. If you are non-resident, you will pay tax on local incomes only.
if you spend more than 182 days in Ukraine during the tax year.
if your personal, economic and social ties are located in Ukraine during the tax year.
if your main residence is located in Ukraine during the tax year.
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Tax on property and share sales
Tax on value of owned assets
Tax on assets passed to heirs
Tax to contribute to state welfare
If you receive incomes overseas while you are living in Ukraine, you may find the source country, as a starting point, continues to tax the income which may cause double taxation unless you are using special tax regime.
Double taxation agreements can be used to mitigate double taxation and receive tax free income. As such, the more double taxation agreements a country has, the better, as agreements will ensure you’re not taxed twice and even better, ensure your income is tax free.
At present, Ukraine has 73 double taxation agreements signed.
