Ukraine relaxes temporary residence permit rules to attract foreign investors
Ukraine is removing barriers that block foreign investment with the aim of making it easier to do business in the country.
Over the past few years, Ukraine has passed a number of reforms aimed at improving the business environment and making the country more attractive for foreign investors. In the World Bank’s Ease of Doing Business rankings, Ukraine has risen from 112th place, in 2014, to 80th place in 2017.
In June 2016, the Government abolished the mandatory state registration of foreign investments, and in June 2017, foreign investors can now obtain temporary resident permits.
Previously, foreign investors were only allowed to stay in Ukraine for more than 90 days during a 180- day period if they were employed by the company. Now, foreign investors that hold substantial interest (at least €100,000) in a Ukrainian company but who are not employed by it can temporarily reside in the country on the grounds of having made an investment in the economy. A temporary residence permit should allow the founder or beneficial owner to spend enough time in Ukraine to help control the economic activity of his or her company.
To extend a temporary residence permit, foreign investors must be able to prove one of the following.
- At least three Ukrainian citizens must have been employed by the company for at least six months prior to submitting the application.
- The company must have paid income tax of at least UAH 160,000 (equivalent to 50 minimum wages) in the financial year that precedes the application.
Residence permits for the founders or beneficial owners of Ukrainian companies are issued for a two year term.