There are several ways that you can obtain long term residency in Ukraine. Depending on which you choose will determine the duration you are allowed to stay in Ukraine. For this post, we will look at the costs associated with obtaining residency by starting an LLC. To see the other options available to you, check out our post, Legal Residence in Ukraine.
Opening an LLC has a high upfront cost, but enables one to stay indefinitely in Ukraine. We will examine the costs associated with founding an LLC in Ukraine. Briefly, residency through this means is accomplished by founding an LLC and naming yourself as director which will make you eligible for a work permit, and through the work, permit you may apply for a temporary residence permit. The work permit is valid for up to three years and can be extended indefinitely. The minimum start-up cost for this route to residency is about $1300 and that requires you to do everything yourself. You can see a breakdown of each cost in USD (as of 2019) below:
Fees for Registering an LLC charter in Ukraine
|Passport translation for tax id||$20||Average translators fee|
|Power of attorney notarization||$25||Average notary fee|
|Power of attorney translation||$20||Average translators fee|
|Legal business address paid yearly||$130||Average landlord fee. Includes address lease and processing of mail.|
|Seal||$20||Average producer’s fee.|
|Nominal director||$240||Average nominated directors fee per month.|
|Charter notarization||$30||Average notary fee.|
|Charter translation||$20||Average translators fee|
|E-Signature||$60||Required to report taxes online rather than reporting to the tax office.|
Fees for obtaining a work permit
|Work permit fee||$470||State duty established by law.|
|Passport translation||$15||State duty established by law.|
|GMS notarization||$25||Average Notary fee|
|Registration fee||$25||State duty established by law|
Fees for obtaining a temporary residence permit (TRP)
|Visa||$65||This is the minimum fee. The cost varies based on your citizenship|
|Medical insurance||$60||Average insurance policy per year.|
|TRP fee||$1.50||State duty established by law|
|Administrative fee||$18||State duty established by law|
|TRP issuance||$14||State duty established by law|
|Passport translation||$20||Average translators fee|
These are the expenses for obtaining the documents which theoretically, you can accomplish yourself. Requirements for being able to do this on your own include being able to read, write, and speak Ukrainian fluently. If you are unable to do this, fear not – we can offer Expatriant verified lawyers to assist you with the process. The fee of the verified lawyer is $1200 ($500 for opening an LLC, $500 for obtaining a work permit, and $200 for obtaining the temporary residency permit) on top of the expenses bringing the total cost to $2500. With an Expatriant verified lawyer, you can rest easy knowing that you will not be cheated, and all documents will be submitted correctly, and on time.
Additional fees that you will be responsible for include paying yourself the monthly minimum wage of $204 – $134 will be paid to you in after-tax salary, $37 will be paid to the state as a social security tax, $30 will be paid to the state as income tax, and $3 will be paid to the state as a military duty. Again, if you are unable to read, write, and speak Ukrainian and require an English speaking accountant then the average monthly reporting service will cost an additional $100 per month. For a Russian or Ukrainian speaking accountant, this service will cost $60 per month. It is possible to avoid these accounting fees altogether if you can report your taxes each month, but again you must be aware of Ukrainian tax law, and able to read write and speak Ukrainian. If you’re new to Ukraine, we can offer Expatriant verified accountants at the rate of $125 per month to ensure that your taxes are filed properly, and on time.
One last notable fee is securing a residential address. You will find that very few landlords will be willing to register you at their address. This is because few of them pay taxes, and when they register foreigners at their address, they put themselves at risk of being investigated by the State Fiscal Service of Ukraine (similar to the IRS in the US). The average fee for this registration service is $320 per year.
In total, for the first year, you should expect to pay between $2000 and $5000. The low end of this estimate stipulates that you do everything yourself, or have a friend help you for free, as well as have someone that will allow you to register yourself at their address for free. The high-end of this range suggests that you have someone help you each step of the way. I hope that this gives you an idea of what to expect in terms of budgeting. If you would like to schedule a free 10-minute residency consultation, reach out to us at email@example.com.