It is no secret that Ukraine is fighting a war against Russia and that this has a devastating impact on the Ukrainian economy. The number of foreign investments to Ukraine has decreased significantly, as not many foreigners are ready to come and open a business under Russian bombs. Before the war, Ukraine offered so much in terms of business opportunities. Businesses were blooming and some industry-sectors were becoming leaders on the global market.
The good news is that since October 2022, foreigners have obtained access to Ukrainian advantages without a need to be present in the country, as President Zelenskiy approved the so-called “E-residence law”.
What is the e-residence law in Ukraine?
This new law allows foreigners to get registered in Ukraine as private entrepreneurs, open bank accounts and deal with Government institutions 100% online. So, you don’t need to come here to open a business, but you still can run it by paying a 5% profit tax!
And these are not all the advantages of the Ukrainian e-residence status. Let’s find more about what benefits you will get from being a Ukrainian e-resident.
Who is eligible for e-residence in Ukraine?
E-residence is a special legal status in Ukraine allowing foreign individuals to open and run their private business without any presence on the Ukrainian territory.
An e-resident is a foreigner 18 or older, who is not a Ukrainian tax resident and registered with the special governmental online system called “E-resident”.
What are the benefits of the e-residence program in Ukraine?
Ukrainian e-residence offers the following main benefits:
- ability to export any services from Ukraine;
- 5% profit tax provided that your annual profit doesn’t exceed UAH 7,805,500.00 (around USD 212,000.00 as of the date of this article);
- 15% profit tax if your annual profit for export of services from Ukraine exceeds UAH 7,805,500.00;
- business registration and operation online;
- opening and managing bank accounts online;
- obtaining qualified and certified digital signature (aka e-signature) online;
- no need of accounting as your Ukrainian bank will be your tax agent taking care of your bookkeeping;
- all communication with the Tax Office and other state institutions is done online.
Learn more about the new e-residency program in Ukraine
Who is NOT eligible for e-residence in Ukraine?
The following categories of individuals CANNOT be e-residents:
· who is already a tax Ukrainian resident;
· Ukrainian citizens;
· holders of Ukrainian permanent residence;
· stateless persons;
· who receives income from Ukraine for goods, works and services (except of passive income like dividends, interest, royalty);
· citizens or residents of Russia, off-shore states listed by FATF and of other countries that can be added to that list.
How do I apply for e-residence in Ukraine?
To become an e-resident you need to take the 4 simple steps:
a) Submit your online application on the “E-resident” platform
b) Visit a Ukrainian consulate so the consular could verify your identity. After a background check you will receive in the consulate: (1) Ukrainian tax ID; and (2) your qualified and certified digital signature (aka e-signature)
c) Register online as a private entrepreneur; and
d) Open online a bank account in a Ukrainian bank.
Note: the E-residence Law takes force on April 01, 2023. By that date the E-residence portal will be launched and will start accepting online applications.
Serhii Aleksandrov is Ukrainian legal practitioner since 2006. He has worked at 4-top Ukrainian law firms and is the Founder of Legal Ideas law firm, with a prime focus on immigration services. Traveler. Business expat. Vision: Immigration must be safe, fast and reasonably priced.