Immigration to Ukraine by investing 10 th. USD

Immigration to Ukraine by investing 10 th. USD

Anyone interested in a possibility of permanent residence in Ukraine heard about the option of “purchasing” this right but the insight does not go further. Taking into account the frequency foreigners ask about this option and its requirements it became clear that this procedure should be explained in details.

First of all, lets get a clear understanding of the terms. According to the Law of Ukraine On Immigration, the immigrant is a foreigner or stateless person who has obtained the immigration permit and has arrived into Ukraine for permanent residence, or this is a person who has obtained the immigration permit being in Ukraine on legitimate grounds and has perpetually stayed in Ukraine. So we see that a person has to obtain the immigration permit in Ukraine in order to be an immigrant.

The immigration permit is granted either within the immigration quota or over this quota. The immigration quota is a maximum number of foreigners and stateless persons to be granted the immigration permit in a certain year. According to the Law of Ukraine On Immigration, the immigration permit is granted within quotes (additionally to other groups of persons like scientists, art workers, etc.) to persons who invested in Ukraine not less than USD 100 thousand in a foreign convertible currency and duly registered this investment.

So we have just ascertained now that the current Ukrainian legislation provides for a possibility to obtain the right of permanent residency in Ukraine for foreigners and stateless persons who have invested in Ukraine not less than USD 100 thousand. However it should be kept in mind that a mere transfer of the money into Ukraine does not grant the Ukrainian permanent residency. This investment has to be duly registered and only after that an applicant can apply for the immigration permit.

It should be noted that according to the Law of Ukraine On Immigration, the immigration permit is not granted to:
· persons convicted to imprisonment for a period longer than 1 year for actions that are recognized as crimes according to Ukrainian law or if a previous conviction is still valid;
· persons who committed peace crimes, military crimes or humanity and peoples crimes, as they are determined by international law, or to persons who are wanted for serious crimes under Ukrainian laws, or who are under prosecution or investigation;
· chronic alcoholics, inhalants addicts, drug addicts or those who have infectious diseases the list of which is determined by a central body of the executive authority responsible for health protection matters;
· persons who deliberately stipulated false information in their immigration applications or submitted forged documents;
· persons who are prohibited from entering into Ukraine by law;
· other persons according to the legislation of Ukraine.

As you can see the list above is not exhaustive but it gives general understanding of other possible cases. For instance, if there is information that a person is a member of some terrorist organization, then this person could hardly obtain the immigration permit. Now lets proceed further with the immigration process in Ukraine.

The next crucial requirement is a duly registration of the investment made. This subject matter is quite intricate and thus it is better to study it separately. Further we will proceed assuming that an immigration permit applicant has already registered his/her investment and is ready to apply for the immigration permit.

As was have already explained above, the Ukrainian immigration permit, in our case, could be granted only within the immigration quota. The immigration quotas are determined by the Cabinet of Ministers of Ukraine for every administrative regional unit of the country annually, yet not later than March 1.

But if there is some quota available, then the immigration permit application shall be submitted to:
(i) regional departments of the State Migration Service by persons temporary residing in Ukraine;
(ii) diplomatic institutions in a place of residence by persons who reside outside of Ukraine.

The form of immigration permit application is determined by the State Migration Service and Ministry of Foreign Affairs.

The applicant shall submit (together with the application) a copy of the document certifying the registration of the investment and also:
· a copy of an identification document certifying the applicant’s citizenship or stateless status;
· three 3.5 x 4.5 centimeters photos;
· a document certifying the place of residence (in Ukraine and abroad);
· documents proving information about the family members (birth certificates, marriage certificates, adoption, wardship and guardianship certificates, etc.);
· a document issued by a medical institution certifying absence of diseases determined by the relevant state body. Persons permanently residing outside of Ukraine shall submit such a document that is issued by a medical institution of the state of their residence and is duly legalized, if otherwise is not determined by a relevant international treaty of Ukraine;
· a statement, issued by a competent body of the state the applicant previously lived in or by its diplomatic office or consulate in Ukraine, certifying absence of conviction records (except for persons set forth in clauses 1 and 3 part 3 article 4 of the Law of Ukraine On Immigration). In exceptional cases such information may be obtained by the State Migration Service or its territorial bodies and units by officially requesting relevant bodies of the foreign state;
· a receipt certifying the payment of the state duty or consular fee, if necessary, or a document that exempts from such payments.

If necessary, the relevant state bodies can ask for other documents that specify grounds for granting the immigration permit and they can also invite an applicant or other persons for an interview.

All documents issued by foreign countries have to be legalized, if otherwise is not determined by a relevant international treaty of Ukraine.

Copies of these documents, a written confirmation of immigration and guarantees made by the host persons, determined by clause 6 part 7 article 9 of the Law of Ukraine On Immigration, have to be notarized. The documents proving information that may be changed can be submitted within 6 months as of the date of their issuance.

Those who are granted with the immigration permit should, within its validity term, contact:
· the foreign diplomatic institutions of Ukraine and apply for the immigration visa, if these persons reside outside of Ukraine, and within 5 working days submit the application to issue the permanent residency certificate to the regional department;
· the regional department with the application to issue the permanent residency certificate, if these persons reside in Ukraine.

It is important that the applicant should personally contact the regional department at least once, i.e. applying for the immigration permit or for the permanent residency certificate.

The immigration permit is the ground for issuance of the immigration visa. The immigration visa is the ground for issuance of the permanent residency certificate.

An immigrant who obtained the permanent residency certificate should register his/her permanent address.

 

Invitation Letter Preparation in Ukraine

Invitation Letter Preparation in Ukraine
An invitation letter is a document needed for obtaining the short-term visa in case a foreigner is invited to come to Ukraine by a persons or legal entity being on the territory of Ukraine (hereinafter the “host”). To find out more about issuance of the short-term visa please read the Rules for Issuing Visas for Entrance into Ukraine and Transit through Its Territory. Note that we won’t consider here the issuance of the invitation letter for legal entities because they certainly have someone able to read the Rules and do the paperwork. So we will concentrate on natural persons only.

The invitation letter is prepared upon request of the host and below we will find out how to do this. Those who speak Ukrainian or Russian can just read the Rules of Preparation and Issuance of Invitation Letters to Foreigners and Stateless Persons for Obtaining the Visa for Entrance into Ukraine. Other may find useful to read this article further. Note, the host is responsible for financial provision of the invitee while he is in Ukraine as well as for the invitee’s departure from Ukraine.

The first step in the process should be a submission of an application by the host to a territorial bodies (administration or chief administration of the migration service in the Autonomic Republic of Crimea, oblasts, Kiev and Sevastopol) or subdivisions of the State Migration Service (administrations, departments (sectors) of the migration service in districts, city districts, oblast or the Autonomic Republic of Crimea capitals) by his place of residence.

The application should be filled out with hand-printed or printed characters, in the Ukrainian language, without abbreviations, acronyms and corrections. The other documents should be submitted with the application are:
· the passport (returned after being provided);
· the permanent residence certificate (for hosts who are foreigners or stateless persons and permanently reside in Ukraine) (returned after being provided);
· documents certifying the host studies, undergoes a training, works, etc. in Ukraine (for host who are foreigners or stateless persons and permanently reside in Ukraine);
· a bank receipt certifying the payment of the state duty (as of now this is UAH 51);
· a bank receipt certifying the payment of the fee for consideration of the application (as of now this is UAH 56.52);
· a copy of the invitee’s passport or another identification document containing identification data. The copy should be translated into Ukrainian and duly certified.

The applications of foreigners or stateless persons temporarily residing in Ukraine should be approved by the management of schools, companies, etc. at which the hosts study, work, etc.

The package of documents is considered for up to 20 days however this term may be shortened to 10 working days for a payment of the double state duty. In case of successful consideration of the documents the invitation letter is granted and handed over to the host against his signature. Its validity term is 6 months.


In case of rejection of the application the host is notified by mail about the reasons of denial the invitation letter. Grounds for a refusal in granting the invitation letter are set forth by the Law of Ukraine On the Legal Status of Foreigners and Stateless Persons. After a rejection of the application it can be resubmitted in 6 months unless the reasons for the rejection do not exist anymore.

 

How to obtain permanent residency in Ukraine

How to obtain permanent residency in Ukraine
Another one of the most frequent questions foreigners are interested in is how to obtain residency in Ukraine. There are two types of residency: permanent and temporal.

Here I will provide the exhaustive list of types of persons who are eligible for obtaining permanent residence. These types of persons are clearly specified in article 4 of the Law of Ukraine “On Immigration” and in article 4 of the Law of Ukraine “On Legal Status of Foreigners and Stateless Persons”.

So here they are:
1) foreigners and stateless persons who had permanently lived on the territory of Ukraine before termination of their Ukrainian citizenship and after the termination have kept living on the Ukrainian territory;
2) science and cultural figures whose immigration represents interest to Ukraine;
3) highly qualified specialists and workers who are in high demand by Ukrainian economy;
4) persons who make foreign investment into Ukrainian economy equal to not less than USD 100 000 and which is registered in accordance with the procedure determined by the Cabinet of Ministers of Ukraine;
5) persons who are brother or sister by blood, grandmother or grandfather, grandson or granddaughter of a Ukrainian citizen;
6) persons who previously were Ukrainian citizens;
7) parents, husband (wife) of an immigrant and his/her junior children;
8) persons who continuously have been living on the territory Ukraine not less than 3 years after receiving the status of a person who suffered from human trafficking;
9) one of the spouses if the other one in a Ukrainian citizen and they have been married for more than 2 years;
10) children and parents of Ukrainian citizens;
11) guardians or trustees of Ukrainian citizens or people who are under guardianship or trusteeship of Ukrainian citizens;
12) persons who have a right to Ukrainian citizenship by the territorial origin;
13) persons whose immigration to Ukraine represents Ukrainian national interest;
14) foreign Ukrainians, spouses of foreign Ukrainians, their children in cases of their collective entrance and stay in the territory of Ukraine.

If you read the above list and did not find a group to which you can refer yourself, then you are not eligible for permanent Ukrainian residence.

 

How to obtain temporal residency in Ukraine

How to obtain temporal residency in Ukraine
Earlier I already made a post in which I explained who can obtain permanent residency. Here I will provide the exhaustive list of types of persons who are eligible for obtaining temporal residence. These types of persons are clearly specified in article 4 of the Law of Ukraine “On Legal Status of Foreigners and Stateless Persons”.

Here they are:
1) foreigners and stateless persons who legitimately arrived to Ukraine for employment;
2) foreigners and stateless persons who arrived to Ukraine for participation in realization of duly registered projects of international technical aid;
3) foreigners and stateless persons who arrived to Ukraine with a purpose of preaching, performing religious ceremonies or other canonical activity by invitation of religious organizations approved by a state body that registered the respective religious organization;
4) foreigners and stateless person who arrived to Ukraine for participation in activity of duly registered branches, departments, representative offices and other subdivisions of civil (non-government) organizations of foreign states;
5) foreigners and stateless person who arrived to Ukraine for work at duly registered Ukrainian representative offices of foreign companies;
6) foreigners and stateless person who arrived to Ukraine for work at duly registered Ukrainian representative offices of foreign banks;
7) foreigners and stateless person who arrived to Ukraine for carrying out cultural, scientific, educational activity pursuant to the order determined by international treaties of Ukraine or by special programs, as well as foreigners and stateless person who arrived to Ukraine for participation in international and regional volunteering programs or for participation in activity of organizations and institutions that involve volunteers to their activity in accordance to the Law of Ukraine “On Volunteering Activity” information on which is published on the official web-site of the central executive body that executes the state policy in the sphere of volunteering;
8) foreigners and stateless person who arrived to Ukraine for work as a correspondent or representative of foreign mass media;
9) foreigners and stateless person who arrived to Ukraine for studding;
10) foreigners and stateless person who arrived to Ukraine for family reunion with persons who are citizens of Ukraine.

If you read the above list and did not find a group to which you can refer yourself, then you are not eligible for temporal Ukrainian residence.

 

Employment of foreigners in Ukraine

Employment of foreigners in Ukraine
Foreigners (who do not have permanent residency) can work for Ukrainian employers only after receiving a work permit. Note that a work permit is issued not for the employer but not for the employee. So, after a Ukrainian company is registered it can apply for obtaining a work permit for its foreign employee. The work permit is issued within a month.

The following documents have to be submitted for obtaining the work permit:
1) application;
2) copies of documents about education and qualification;
3) notarized copy of the applicant’s translated and notarized passport;
4) two (2) applicant’s color photos (3.5 x 4.5 centimeters);
5) medical certificate stating that the applicant does not have illnesses specified by the Health Ministry of Ukraine;
6) the employer’s statement saying the vacancy does not require from the employee to be a Ukrainian national and to have access to state secrets;
7) statement issued by the Ministry of Internal Affairs of Ukraine saying the applicant who is staying on the territory of Ukraine is not being under prosecution and does not serve a term;
8) power of attorney of the minutes of shareholders authorizing to represent the employer with the relevant state bodies.

All documents issued abroad should be apostilled/legalized, translated into Ukrainian and notarized.

After a work permit is issued, the respective foreigner can apply for temporary residency certificate that allows to stay in Ukraine for up to one year and can be prolonged annually.

 

How to bring your car or other property on customs duities

How to bring your car or other property in Ukraine and safe on customs duities and taxes

I am sure you know that when you bring property to Ukraine you have to pay customs duties and VAT. But there are cases when you are exempted from paying all these levies.

I assume you know about some such cases, for example when you move to Ukraine for permanent residency. But there is another case that not only exempts from paying these levies, but also can be used for minimization of your expenses and even for making some income. This case is when you invest property to your Ukrainian company.

You may say that you do not have and are not going to have a company in Ukraine. Although, you might change your mind after reading this post.

Let’s consider some example. Say you have your lovely car back home and would like to use it in Ukraine. You know that your car costs much more because you have to customs clear it in Ukraine and pay 20% VAT on top of that.

But if you incorporate a company in Ukraine and allocate your car to the company’s charter capital as your investment, then you do not need to customs clear it and will get your VAT refunded.

There is a note, however. If you sell the car within 3 years after the investment, you will have to pay the customs duties yet you still you have your VAT refunded. Anyway, do the math. You will sell your car after 3 years with significant profit anyway.

Below I provide the major provisions of relevant legislation so you could see that what I have just said is true.

Re exemption from customs duties.

Article 18 of the Law of Ukraine “On Foreign Investment Regime” (hereinafter the “Law”) says:
“taxation of property brought to Ukraine as contribution of a foreign investor to the charter capital of companies with foreign investments (except of cases that does not concern of commercial activity) is carried out according to the Customs Code of Ukraine.”.
Clause 2 article 287 of the Customs Code of Ukraine (hereinafter the “Customs Code”) respectively says:
“goods (except of cases that does not concern of commercial activity) imported to Ukraine for at least 3 years by foreign investors in accordance with the Law of Ukraine “On Foreign Investment Regime” as a contribution of a foreign investor to investor to the charter capital of companies with foreign investments are exempted from customs duties.”.

So, if you own a company in Ukraine, then you can take your home car, yacht or any other property and allocate it to your Ukrainian company. In this case you do not pay customs duties.

Re refund of VAT.

When you import (bring something) to Ukraine you pay 20% VAT (except of some cases). However, if you import property as a contribution to the charter capital of a company, then all paid VAT will be refunded to you.

In particular, clause article 198 of the Tax Code of Ukraine (hereinafter the “Tax Code”) says:
“The tax credit is all taxes paid due to importation to Ukraine of property as a contribution to a charter capital.”

According to a number of provisions of the Tax Code the sum of tax credit can be refunded upon request.

 

Liability for overstaying 90 days, visa or residence permit

Liability for overstaying 90 days, visa or residence permit

Those who overstayed in Ukraine and wonder what to do now and what to expect on the border must find this post of their interest. No rumors, no silly advice, just pure law.

A warning or UAH 510 to UAH 850 fine is imposed on a foreigner overstayed in Ukrain­e (art. 203 of the Administrative Offenc­e Code of Ukraine).

Moreover, any violation of immigration a­nd visa legislation is a legal ground fo­r authorities to expel from Ukraine (art­. 26 of the Law of Ukraine On the Legal ­Status of Foreigners and Stateless perso­ns). If such a decision is made, then th­e foreigner is given 30 calendar days fo­r leaving the country. The authorities c­an also decide to ban the foreigner from­ re-entering Ukraine within 3 years.

P.S. Giving or offering a bribe imposes ­the following liability: fine UAH 8500 t­o UAH 12750, limitation freedom or impri­sonment from 2 to 4 years (art. 369 of t­he Criminal Code of Ukraine).