Many foreigners who live in Kyiv, Lviv, or elsewhere in Ukraine assume they remain taxpayers only in their home country. Ukrainian law does not work that way. Residency under the Tax Code of Ukraine (TCU) depends on where you live and where your ties are, not on your passport. This guide explains the Ukrainian test, how it interacts with your home country's rules, and what changes if you own a foreign company.

Glossary

  • TCU — Tax Code of Ukraine
  • STS — State Tax Service of Ukraine
  • CFC — controlled foreign company
  • FOP — sole proprietor (fizychna osoba-pidpryiemets)
  • SSC — single social contribution

The Ukrainian residency test (TCU Art. 14.1.213)

Ukrainian law defines a resident individual as someone who has a place of residence in Ukraine, then applies a cascade:

StepTestIn practice
1Place of residence (a home) in UkraineA dwelling you actually use
2If you also have a home abroad: permanent homeWhich home is permanent rather than temporary
3If you have a permanent home in both: centre of vital interestsCloser personal or economic ties
4If that can't be determined: 183 days or more in Ukraine in the tax yearArrival and departure days count
5If still unresolved: Ukrainian citizenshipFallback test

Two points stand out:

  • The TCU states that the place where your family permanently lives or your registration as a business is a sufficient, though not exclusive condition for locating your centre of vital interests in Ukraine. STS guidance repeats this wording.
  • The 183-day count is the fourth step. Spending fewer than 183 days in Ukraine does not by itself make you a non-resident if your home and family are here.

You should also take into account the other provisions of TCU Art. 14.1.213 on self-determined main residence and self-employed persons — this article does not cover them in detail.

What Ukraine taxes once you are resident

  • Worldwide income, declared in the annual property and income return, due May 1 of the following year.
  • General rates: 18% personal income tax and 5% military levy (Law No. 4015-IX, effective December 1, 2024).
  • Foreign tax credit (TCU 170.11.2): available where a treaty is in force and you have a certificate from the foreign tax authority confirming the tax paid and the tax base, legalized or apostilled unless the treaty says otherwise. Foreign tax does not reduce the military levy.

Non-residents pay Ukrainian tax only on Ukrainian-source income.

You should also take into account the specific rates the TCU sets for particular income types, including foreign dividends — this article does not cover them in detail.

How your home country sees it

CountryDomestic test (summary)
United StatesGreen card or substantial presence test (at least 31 days this year and 183 weighted days over three years)
United KingdomStatutory Residence Test: automatic overseas tests (fewer than 16 or 46 days), automatic UK tests (183+ days; UK home), sufficient ties test
GermanyHome you use (Wohnsitz, § 8 AO) or habitual abode over six months (§ 9 AO)
PolandCentre of vital interests or more than 183 days in the tax year; either is enough
SpainMore than 183 days, centre of economic interests, or spouse and minor children living in Spain (rebuttable presumption)
CzechiaDomicile or at least 183 days in the calendar year

Keeping a home or family in your home country while living in Ukraine is the most common source of dual residency.

You should also take into account the rules of other countries (including Canada, Italy, Portugal, and the Netherlands) and the U.S. rules on taxing citizens — this article does not cover them in detail.

Treaty tie-breaker (Article 4)

If both countries treat you as resident under their domestic laws, the treaty decides residence for treaty purposes, in this order:

  1. Permanent home available to you
  2. Centre of vital interests
  3. Habitual abode
  4. Nationality
  5. Mutual agreement between the competent authorities

The STS acknowledges that a person can be resident in two countries and that competent authorities resolve the conflict under the treaty. The Germany–Ukraine treaty (1995) follows this hierarchy. Ukraine and Spain still apply the 1985 USSR–Spain convention.

You should also take into account the OECD Commentary on Article 4 and the text of the specific treaty between Ukraine and your country — this article does not cover them in detail.

Sole proprietor (FOP) status

Registering as a FOP is common for foreigners working in Ukraine. Under the TCU, FOP registration is a sufficient condition for a centre of vital interests in Ukraine. Advisers read this differently: some treat a FOP as enough for residency; others limit it to the centre-of-interests step, which only applies if you have a permanent home in both countries. A FOP also brings SSC and simplified-tax obligations. Your home country may still view you as resident if your family or home remains there.

Residency certificates and leaving Ukraine

  • A Ukrainian residency certificate is issued by the STS within 10 calendar days of application (Ministry of Finance Order No. 248 of August 19, 2022). An apostille on a paper certificate can take up to 20 business days. Ukraine's Supreme Court (case No. 160/5435/25) held that the TCU does not require a paper-only certificate.
  • A home-country certificate is issued by that country's competent authority. For treaty benefits in Ukraine, it generally must be legalized or apostilled and translated.
  • Leaving Ukraine permanently: a resident moving abroad must file a return no later than 60 calendar days before departure (TCU 179.3); the STS then issues a tax clearance certificate (TCU 179.12).
  • There is no formal procedure to be declared a non-resident. In case No. 757/50930/23-ц (May 12, 2026), the Supreme Court refused to establish non-residency without an actual tax dispute.

CFC rules in brief (TCU Art. 39-2)

A foreign company is a CFC of a Ukrainian resident if the resident:

  • holds more than 50%; or
  • holds more than 10%, where Ukrainian residents together hold 50% or more; or
  • exercises actual control (the tax authority bears the burden of proving it).

A holding of exactly 50% with no other grounds is not a CFC, according to STS guidance. Only Ukrainian tax residents can be controlling persons.

ObligationDeadlinePenalty in 2026 (subsistence minimum UAH 3,328)
Notification of acquiring or disposing of an interest or control60 calendar days300 subsistence minimums per failure — UAH 998,400
Annual CFC report (individuals)With the annual return, by May 1100 subsistence minimums — UAH 332,800

Martial-law deferral. Under Law No. 4113-IX (effective December 26, 2024), penalties for violations from January 1, 2022 through the last day of the month in which martial law ends are not applied, provided the controlling person meets all Art. 39-2 obligations within six months after martial law ends. The filing obligations and any tax remain.

Exemptions from CFC profit tax (the report is still required):

  • total income of all your CFCs does not exceed the equivalent of EUR 2 million; or
  • the CFC's effective corporate tax rate is at least 13% and passive income is no more than 50% of total income.

Dividends paid from profits already taxed in Ukraine as CFC profit are not taxed again; dividends from exempt profits are reported when received.

You should also take into account the additional exemption grounds and conditions in TCU Art. 39-2.4, other penalties under TCU Art. 120, and the rules on when the notification duty arises for someone who acquired a company before becoming resident — this article does not cover them in detail.

CRS: how authorities learn about accounts

Ukraine completed its first automatic exchange of financial account information (CRS) in September 2024. The amended standard (CRS 2.0) applies in Ukraine from July 1, 2026, with exchanges under it expected from 2027. CRS data gives the STS grounds for inquiries; it does not by itself determine residency or create a tax liability.

Where positions differ

QuestionUkrainian positionHome-country or treaty position
Foreigner with a FOP in Ukraine and family abroadFOP is sufficient for a centre of vital interests in UkraineHome country may weigh family and home more heavily; the treaty starts with permanent home
Fewer than 183 days in Ukraine but living in a Kyiv apartmentCan still be resident: home is step 1Home country applies its own day or ties test
Non-resident owning a foreign companyNot a controlling person under Art. 39-2Home country's own rules apply

Practical checklist

  1. Assess Ukrainian residency year by year using the five-step cascade.
  2. Assess home-country residency under its domestic law.
  3. If both apply, work through the treaty tie-breaker and gather evidence for each step.
  4. Collect documents: lease or ownership, family location, employment or FOP records, border-crossing data, residency certificates.
  5. List foreign companies and interests; check CFC thresholds and exemptions.
  6. Calculate foreign tax credits; the military levy is not reduced.
  7. If positions conflict, consider an individual tax consultation from the STS, a ruling in your home country, or the treaty's mutual agreement procedure.

FAQ

Can a foreigner be a Ukrainian tax resident?+

Yes. Ukraine applies the same test to foreigners and citizens; citizenship is only the fallback step.

Does spending fewer than 183 days in Ukraine make me a non-resident?+

Not necessarily. Home and centre of vital interests come first.

Does a home-country residency certificate settle the question?+

It is strong evidence, but if both countries claim you, the treaty tie-breaker decides.

Are CFC penalties applied now?+

Not during martial law, provided you comply within six months after it ends. The obligations remain.

Short Q&A pieces

Ukrainian version: Іноземна компанія і податкове резидентство.

Sources

#CFC#taxresidency#foreigners#Ukraine#CRS