Investing in Ukraine
Ukraine offers various investment opportunities for both local and international investors. This guide covers the tax treatment of investment income, available investment vehicles, and key considerations.
Investment Options in Ukraine
Securities
- Ukrainian government bonds (OVDP): Taxed at 18% PIT on interest income
- Corporate bonds: Interest taxed at 18% PIT + 1.5% military levy
- Stocks (listed): Dividends at 5% WHT, capital gains at 19.5%
- Bank deposits: Interest tax-free up to certain limit, then 18% + 1.5%
Real Estate
- Residential property: Rental income at 18% + 1.5%, capital gains exempt after 3 years
- Commercial property: Higher yields, full taxation
- Agricultural land: Moratorium on sale recently partially lifted
Business Investment
- Direct investment: Setting up a Ukrainian company
- Joint ventures: Partnering with local businesses
- Branch registration: For foreign companies
Tax Treatment of Investment Income
| Income Type | Tax Rate |
|---|---|
| Dividends (residents) | 5% final WHT |
| Dividends (non-residents) | 15% WHT |
| Bank deposit interest | 0% (up to limit) |
| Corporate bond interest | 18% + 1.5% military levy |
| Capital gains (securities >1yr) | 0% |
| Capital gains (securities <1yr) | 18% + 1.5% military levy |
| Rental income | 18% + 1.5% military levy |
Brokerage Accounts
Ukrainian residents can invest through:
- Ukrainian brokers: Access to Ukrainian stock exchange (PFTS, UX)
- International brokers: Access to global markets (Interactive Brokers, etc.)
- Foreign investment accounts: Must report foreign accounts to Ukrainian tax authorities
International Investing for Ukrainians
Ukrainian residents investing abroad must:
- Report foreign bank accounts and assets
- Pay tax on worldwide income (with foreign tax credit)
- Comply with currency control regulations for capital outflows
- File annual property declaration including foreign assets