A Guide for Foreign IT Specialists: Living and Working in Ukraine

Ukraine has emerged as a thriving hub for the IT industry, attracting foreign IT specialists seeking new opportunities and vibrant tech ecosystems. With its skilled workforce, competitive wages, and supportive environment, Ukraine offers an attractive destination for those looking to live and work in the country. In this article, we will delve into the intricacies of staying and living in Ukraine as a foreign IT specialist, covering information on taxes for IT activities, as well as temporary and permanent residence permits.

Related article: What documents are needed when you plan to obtain a residence permit in Ukraine?

Taxes for IT Activities in Ukraine

Ukraine has implemented a favorable tax regime for IT professionals, known as the "IT-individual" taxation system. Under this system, registered IT specialists can choose to pay a flat income tax rate of 5% on their earnings, significantly lower than the standard rate for other professions. This progressive tax policy is designed to stimulate the growth of the IT sector and attract foreign talent to the country.

To qualify for the IT-individual tax regime, foreign IT specialists must meet certain criteria, such as having a contract with a Ukrainian IT company or being a sole entrepreneur engaged in IT activities. Additionally, it is necessary to register with the State Tax Service of Ukraine and obtain an Individual Taxpayer Identification Number (ITIN). By complying with these requirements, foreign IT professionals can benefit from the reduced tax rate and contribute to the thriving Ukrainian IT industry.

Temporary Residence Permit for IT specialists

Foreign IT specialists who plan to work in Ukraine for an extended period, typically exceeding 90 days, are required to obtain a temporary residence permit. The process for obtaining this permit involves several steps:

• Work Permit: Prior to applying for a temporary residence permit, foreign IT specialists must obtain a work permit from the State Employment Service of Ukraine. The employer or contracting company typically initiates this process by submitting relevant documentation, such as the employment agreement and the job description.

• Application for Temporary Residence Permit: Once the work permit is secured, the foreign IT specialist can proceed with the application for a temporary residence permit. This process requires submitting various documents, including a valid passport, work permit, health insurance, proof of accommodation, and a criminal record clearance.

• Approval and Residence Permit Issuance: After the application is submitted, the State Migration Service of Ukraine reviews the documents and makes a decision. Upon approval, the foreign IT specialist can collect their temporary residence permit, allowing them to legally reside and work in Ukraine for the specified period.

A temporary residence permit is convenient, but in case you want to move right now. There are interesting options for those who want to live in Ukraine, but do not have a direct job offer from a Ukrainian company. For example, a residence permit is obtained on the basis of opening a company in Ukraine, after which an IT specialist can conduct business either through this company or through a sole proprietorship created for this purpose.

We help develop the best plan for each client and bring it to life.

Related article: How can I obtain a residence permit in Ukraine through employment in a Ukrainian company or public organisation?

Permanent Residence Permit for IT specialists

For foreign IT professionals who wish to make Ukraine their long-term home, obtaining a permanent residence permit is a viable option. The requirements for a permanent residence permit include:

• Temporary Residence Period: Initially, foreign IT specialists must live and work in Ukraine on a temporary residence permit for at least two years. During this period, it is essential to comply with Ukrainian laws and fulfill all tax obligations.

• Application for Permanent Residence Permit: After fulfilling the temporary residence period, foreign IT specialists can apply for a permanent residence permit. The application involves submitting relevant documents, including proof of financial stability, knowledge of the Ukrainian language, and a clean criminal record.

• Approval and Permanent Residence Permit Issuance: Upon successful application review, the State Migration Service of Ukraine grants the permanent residence permit. This permit provides the right to live, work, and enjoy most of the benefits available to Ukrainian citizens.

A permanent residence permit is a good option for those IT professionals who have a job offer with a long-term contract in Ukraine. In this case, it is worth waiting for a residence permit and enjoying its benefits.

Ukraine's thriving IT industry, combined with its favorable tax regime and supportive environment, makes it an enticing destination for foreign IT specialists. With the IT-individual tax system offering reduced tax rates, the path to financial success is streamlined.
 

Additionally, the temporary and permanent residence permit processes provide clear guidelines for foreign IT specialists to establish themselves legally in Ukraine. By embracing the opportunities available, foreign IT specialists can contribute to the growth of the Ukrainian IT industry while enjoying a fulfilling personal and professional life in this dynamic country.

If you are planning to move to Ukraine - contact us! For more than 15 years we have been helping to obtain a residence permit in Ukraine, including for difficult categories of foreigners - IT specialists, foreigners from countries at risk of migration, etc.