Permanent Residence in Ukraine – Investment Scheme
Are you one of those people who came to Ukraine and, right from the start, fell in love with the country? Or are you thinking of relocating to Ukraine and ready to invest here? Here’s a quick guide to how you can obtain a permanent residence permit through investment in Ukraine.
Key Benefits of Permanent Residence Permit (PRP)
Foreigners who want to live in Ukraine indefinitely and are prepared to invest USD $100,000 or more in the Ukrainian economy are eligible to apply for a Permanent Residence Permit (PRP).
The key benefits of the PRP are as follows:
- right to reside in Ukraine for an unlimited period;
- right to work with no need to obtain a work permit;
- right to do business in Ukraine as a private entrepreneur with very favourable taxation rules via the Simplified Tax Scheme (unified tax is up to 5% from receivables), which can lead to considerable tax savings for foreigners from “high tax” countries;
- can simplify the process for obtaining visas to EU countries (for citizens who need such visas).
How to Get PRP?
Similar to investment-based permanent residence schemes in many other countries, such as the USA, Canada, and Singapore, Ukraine offers permanent residence to foreign investors subject to the following conditions:
- investment is made in a foreign convertible currency;
- the amount of investment is not less than USD $100,000;
- payment for the investment was made in accordance with Ukrainian investment and banking law;
- the funds are invested into the Ukrainian economy.
Note: not all types of investments are considered eligible for this scheme. Simply buying a property in Ukraine for the required amount does not allow a foreign national to get an immigration permit (and, as result, the PRP).
In practice, the laws require injecting funds into the share capital of a company registered in Ukraine, or joint investment activity in the territory of Ukraine. After the company with foreign capital is duly registered in Ukraine, it can perform any type of business activity not prohibited by Ukrainian law and indicated in the statutory documents of the company (including investment activity, trade, services, export/import business activity, etc.). The share capital of the company can be used for buying property (including real estate, other assets or commodities) as well as for current operations of the company.
Therefore, if, for example, you wish to buy real estate in Ukraine and reside in Ukraine permanently, you can set up a company in Ukraine, inject the respective amount of share capital (not less than equivalent of USD $100,000) and buy property in the name of the legal entity.
After the required investment has been made, the foreign national can apply for an immigration permit, and following that a permanent residence permit.
How to Get PRP?
Five Steps to Get PRP in Ukraine
In order to obtain PRP, you will need to go through several steps as required by law. The key steps for getting PRP include:
- Setting up a Company in Ukraine
- Injection of Share Capital
- Application for Immigration Permit
- Application for Visa “D”
- Application for a Permanent Residence Permit
Below on you can find more details about each of these steps.
Step 1 — Setting up a Company in Ukraine
In most cases, LLC is the most suitable business structure in Ukraine, as it is simple to register and maintain. The registration process takes only one working day. Before registering the company the foreign national must:
- obtain a Ukrainian tax ID, which will take three working days;
- fill in an application form, and draft and sign the company’s charter and minutes of incorporation.
Because all the documents need to be in the Ukrainian language and because of the complexity of Ukrainian regulations and registration processes, it is highly advisable to engage the services of a professional legal adviser to complete the above steps.
Step 2 — Injection of Share Capital
Once the company is registered, you as the company shareholder will need to inject share capital in the amount of no less than $100,000 or the equivalent.
You can send funds to the corporate bank account of your company either directly from your overseas account OR by opening an investment bank account with one of Ukrainian banks, transferring funds to this investment bank account from overseas, and then transferring funds from the investment bank account to the corporate bank account of your company.
After the investment has been made, you need to get a certificate from the bank confirming your investment.
Step 3 — Application for Immigration Permit
Once the investment has been made, a foreigner can file an application to the State Migration Service of Ukraine (if the foreigner is present in Ukraine) or a Ukrainian Embassy in the foreigner’s country of residence of a foreigner (if the foreigner is overseas at the time of application).
Along with the application, you will need to file the following documents:
- passport and its notarized translation into Ukrainian;
- 8 matte photos 3.5 by 4.5 cm;
- certificate from the bank confirming your investment;
- charter of the Ukrainian company and extract confirming registration of the company;
- a document confirming your address (can be a driver’s license, utility bill etc.);
- A “no criminal record” certificate with an apostille;
- information about your close relatives (a marriage certificate if you are married);
- medical certificate confirming a person is not addicted to illegal drugs, opioids, or alcohol, and has no infectious diseases as listed in law.
The timeline for obtaining an immigration permit is up to one year as defined by law (although, in practice, it can be done within approximately six months).
Step 4 — Application for Visa “D”
After obtaining an immigration permit, a foreign individual who is present in another country has to obtain a visa type “D” at a Ukrainian embassy or consulate before arriving in Ukraine. The foreigner must apply for a permanent residence permit within five working days upon arrival to Ukraine.
If the foreign national is in Ukraine already, the visa “D” is not required, and this step can be skipped.
Step 5 — Permanent Residence Permit
The Permanent Residence permit will be issued based on the immigration permit within one week upon application to the State Migration Service of Ukraine.
As the procedure for obtaining permanent residency in Ukraine takes time, if you wish to relocate to Ukraine earlier, you can get a temporary residence permit (issued for up to three years and renewable). For that, the Ukrainian company founded by you can employ you as a director and get a work permit for you, which is legal grounds to obtain the temporary residence permit.
Alternatively, if the investment is made for an amount of no less than EUR 100,000, a temporary residence permit can be issued without employment in Ukraine.
How Can You Use the Share Capital Funds of your company in Ukraine?
Once your company is registered in Ukraine and you have injected share capital, you are free to use these funds for various needs:
- To finance the company’s business activities
- You can buy a property in the company’s name (in this case, the legal entity will be registered as the owner of the real estate).