Permanent residence in Ukraine by making foreign investment
A permanent residence in Ukraine is issued only on the basis of an immigration permit.
The Law contains an exhaustive list of reasons, which give the right to apply for the immigration permit.
Most of them relate to relationships with the citizens of Ukraine. If an immigrant does not have relatives in Ukraine, outstanding achievements in the world science or was not earlier a citizen of Ukraine, the most possible reason for immigration permit is making foreign investment.
Thus, according to the Law of Ukraine “On Immigration”, the right to obtain immigration permit is given to persons who have made foreign investment in Ukraine’s economy by foreign convertible currency for a minimum amount of one hundred thousand US dollars that is registered according to the procedure established by the Cabinet of Ministers of Ukraine.
Making of a foreign investment can be carried out by creating a new company, participation in the authorized capital of an existing company. But investment must meet the following mandatory criteria:
– to be made in foreign convertible currency (US dollars, euros, etc.);
– to be equivalent to the amount not less than one hundred thousand dollars;
– to be registered according to the legislation
– to be the investment in Ukraine’s economy, that is the purpose of economic activity for profit or achieve other social effect.
Foreigners that wish to immigrate to Ukraine, often have the question whether the purchase of housing in Ukraine provides the right to permanent residence.
Unfortunately, even if the price of the apartment or house exceeds 100 000 dollars, the ownership of such housing does not give the right to immigration, because buying an apartment or house for their own use is not considered an investment, and will not be registered by the Ministry of Economy of Ukraine.
The best option of making foreign investment is creating your own company in Ukraine (any specialization or direction) and introduction of the sum of 100,000 US dollars in foreign currency in its share capital from your personal account to account of established company.
If you really want to do business in Ukraine, you can choose one of the most promising sectors of the economy, and grow your business. Contributed amount of the authorized capital allows you to attract effective resources and to make a profit even with minimal participation of the founder.
If the making of a foreign investment was carried out only in order obtain the right for permanent residence in Ukraine, the money, after obtaining the permanent residence, can be spent on behalf of the Company, including for the purchase of real estate.
Here we describe the most appropriate option of making investments with the acquisition of real estate and obtaining permanent residence in Ukraine, as well as the main costs and taxes that may arise in this process:
1) Registration of the Company in Ukraine where you will act as a founder, preferably in the form of Limited Liability Company. Among the activities of the company you can specify as a major real estate transactions (sale and lease), or any other type of economic activity of your choice.
2) Whereas the procedure for obtaining the permanent residence may take up to one year, we suggest to get started by obtaining of a temporary residence permit. The best option – to obtain a work permit as a director of your own company, which will give the right to a temporary (one year) living in Ukraine.
3) Making the share capital in the amount equivalent to 100 000 US dollars in foreign currency. Funds should be transferred from your personal account. It is recommended to immediately buy an apartment in order to minimize risks from exchange rate differences.
At the stage of establishing the company and for the first time of its existence you should keep in mind the following costs: director’s salary, accounting services. Prior to obtaining permanent residence it may take about 6 months of such expenses.
4) Registration of a foreign investment at the Ministry of Economy
This process takes about 2 weeks of time, involves verification of revenues by tax inspection and registration in the territorial authority of Ministry of Economy.
5) Preparation and submission all documents for the immigration permit
The main document is the notification of the registration of investments, other documents relate to no criminal records, residence, medical examinations, etc.
Obtaining of the immigration permit takes about half the year (according to the law – up to one year).
6) The liquidation of the Company, the withdrawal of assets
Liquidation of the company will take about 2-3 months; certainly you cannot liquidate the Company before obtaining of immigration permit. Upon liquidation of the Company the acquired property will be returned to the founder. During the existence of Company, property can be used for your own needs as well as for giving on rent etc.
Attorneys at law “Bachynskyy, Kolomiets and partners” provides a full range of services related to obtaining permanent residence in Ukraine on the basis of making of a foreign investment, including: the creation and registration of companies, registration of a foreign investment in the authorities of the Ministry of Economy and maintenance of the company activity, liquidation of the company, preparation and submitting of all documents to obtain immigration permit and permanent residence in Ukraine.
For questions, please call: +38 096 002 01 00; 032 247 35 44
Senior associate Natalia Vasylechko