Ukrainian E-Residency for Foreign Nationals

Ukrainian E-Residency for Foreign Nationals

The advantage of e-residency is that it is easy and available online for individuals (mostly IT professionals and consultants), who want to pay taxes at a comparatively low rate enjoyed by ordinary residents of Ukraine, but without being in Ukraine.

Requirements for E-Residency

To qualify as an e-resident, a foreigner must meet the following criteria:

• Age: The individual must be at least 18 years old.
• Tax Residency: The person should not be a tax resident of Ukraine.
• Qualified Electronic Trust Services: The applicant must have obtained appropriate qualified electronic trust services.
• Registration: The individual needs to be registered in the E-Resident information system.

Application Process

A potential e-resident must:

• Fill out an application through a mobile application «Dia» or on the uRecidency portal.
• Visit the Ukrainian consulate for identification (subsequently, the identification procedure will also be digitalized and available online.
• Then he/she opens a bank account remotely, and it is the bank that will be the tax agent for the resident.

If person is approved, he/she becomes an e-resident - an electronic single tax payer for group 3 without VAT and receives an electronic digital signature.

Taxation and Banking

E-residents are subject to a tax rate of 5% on their income, including VAT, up to a certain limit. The limit is calculated based on the equivalent of 1,167 minimum wages established by law as of January 1 of the tax year, which currently amounts to UAH 8,285,700 (approximately EUR 189,991 as of December 2024). Any income exceeding this limit is taxed at a rate of 15%. It is important to note that the resident's bank serves as the tax agent.

Communication and Limitations

Correspondence between the tax authorities and the e-resident is carried out exclusively by means of electronic communication in a digital format.

The following persons may not be e-residents:

• citizens of Ukraine
• foreigners who have the right to permanent residence in Ukraine or are tax residents of Ukraine
• stateless persons
• persons receiving income originating in Ukraine for goods, works, services (except for passive income);
• persons who are citizens (subjects), residents or persons whose place of permanent residence (stay, registration) is in states (jurisdictions) not included in the List of states whose citizens or residents may obtain the status of an electronic resident (e-resident).

Additional Regulations for E-Residents

E-residents are only permitted to receive passive income originating in Ukraine, such as interest, dividends, and royaltiese also restricted to providing services, producing, and selling goods exclusively to non-residents of Ukraine. Furthermore, e-residents are prohibited from employing Ukrainian citizens or residents.

Residency program is currently available for citizens of India, Pakistan, Thailand and Slovenia.