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E-Residency in Ukraine: All You Need To Know

Starting from the April 1, 2023, a new law in Ukraine paved the way for foreign individuals to become “digital” residents, aka “e-residents”. These e-residents will have the option to register themselves as individual entrepreneurs and be taxed under Ukraine’s simplified tax system. This system levies a moderate tax of 5% on income up to UAH 7,850,500, roughly equivalent to EUR 199,820.

What makes this process more exciting is its entirely digital approach. From registering as an entrepreneur to opening a bank account, everything can be done remotely and online, keeping in line with the concept of digital residency. Furthermore, banks will play a significant role as tax agents for these e-residents, taking care of tax withholding and payments.

The beauty of e-residency lies in its simplicity and transparency. This option is primarily aimed at IT professionals and consultants seeking to enjoy the relatively low tax rate offered to the regular residents of Ukraine, without having to physically be in Ukraine. So, with this law, Ukraine becomes a digital home with welcoming tax conditions for many around the globe.

What Is Ukrainian E-Residency

Ukrainian e-Residency is a scheme that allows foreign citizens (primarily IT specialists) to open and run a business in Ukraine without being physically present in the country. This will allow freelancers who work with Ukrainian IT companies to formalize their business relationships. The e-Resident status will also be useful when looking for a job in the global market. You’ll easily do contracts and improve your relationship when you’re officially registered and operating under Ukrainian laws.

Overall, Ukrainian e-residency status will make you stand out among the other freelancers.

Benefits of e-Residency Ukraine

The Ukrainian e-Residency program is very attractive with its perks. Let’s quickly have a look at each of them.

  • Pay a Flat Tax of 5% of Your Income: When designing this scheme, the Ukrainian government has aimed to simplify the taxing. If you’re an e-Resident registered as a private entrepreneur, you’ll only pay one unified flat tax which is %5 of your income.
  • Get Your E-Signature: With an e-signature, you can sign contracts and documents remotely. This is a huge benefit when you’re working online and aren’t physically present in the country.
  • Open a Bank Account Remotely: The Ukrainian government has developed a digital identification and verification system that allows you to open a bank account in Ukraine completely online. So you don’t have to visit the country to open a bank account.
  • Get Professional Assistance: When you sign up for a Ukrainian e-Residency, you’ll get help from an English-speaking personal manager. This way you’ll have access to professional help for your activities.

How To Apply for E-Residency in Ukraine

To apply for a Ukrainian e-Residency is quite simple. Simply, sign up for your e-Residency application via the Ukrainian e-Residency website. This will then lead to you providing the relevant information for your application. Then simply sit and wait for your application to be reviewed. Upon being reviewed, you’ll visit the consulate of Ukraine to complete the full procedure. Once you complete this step, you should be on your way to setting up your e-Residency business!

Sign Up

Application Review Process

Wait for your application be to be approved

Visit the Consulate

Visit the consulate of Ukraine to complete the procedure

Complete the Process

  • Get your e-signature
  • Set up your business
  • Open a bank account online

Wrap Up

Ukraine has successfully adapted to the modernity of e-Residency programs. The program is in the early stages but is very promising. We hope this article has explained what Ukrainian e-Residency is, what it isn’t and how you can benefit. Don’t miss out on our E-Residency Programs All Around the World article for more e-Residency programs.

Have you ever applied for an e-Residency in any country? Are you planning to apply for one? Feel free to share your comments with us…

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