L

Leaving Ukrainian tax residency: how to establish non-resident status

Updated: November 2026
 
Millions of Ukrainians live abroad, work there and pay taxes there. Yet for the Ukrainian tax authority, most of them remain Ukrainian tax residents. Formally, they must therefore declare their worldwide income in Ukraine. Through the automatic exchange of financial information (CRS), the State Tax Service already receives data on Ukrainians’ foreign accounts, so the issue is no longer theoretical.
 
The question is equally relevant for foreign tax advisers and accountants who serve Ukrainian clients and need to assess their residency position in Ukraine.
 
No procedure and no document
Ukrainian law does not provide a special procedure for leaving tax residency, nor is there a document confirming non-resident status. In response to such applications, the State Tax Service states that the Tax Code of Ukraine does not provide for issuing such documents.
 
Tax residency is not linked to citizenship. A person remains a Ukrainian citizen, while residency determines only where and on which income they pay tax.
 
Residency criteria
Under subparagraph 14.1.213 of the Tax Code of Ukraine (in Ukrainian), an individual is a resident if they have a place of residence in Ukraine. If they also have a place of residence in another state, the following criteria apply in sequence:
  1. centre of vital interests — where personal and economic ties are closer: family, business, income;
  2. presence in Ukraine for at least 183 days in the tax year, if the centre of vital interests cannot be determined;
  3. Ukrainian citizenship, if the other criteria do not give an answer.
 
Thus, 183 days abroad do not in themselves make a person a non-resident: the day-count test applies only after place of residence and centre of vital interests. If both states treat the person as a resident, the conflict is resolved under the double tax treaty between Ukraine and the other state.
 
Preparation
To substantiate non-resident status, the ties that make Ukraine the centre of vital interests should be minimised.
  • Close the sole proprietorship (FOP). A registered FOP, even without activity, is a clear argument for Ukrainian residency.
  • Move economic interests. It is advisable, though not mandatory, to sell real estate and shares in Ukrainian companies and to end employment in Ukraine.
  • Document the centre of vital interests in another state:
    • residence permit;
    • tax return filed and tax paid there;
    • tax residency certificate from the foreign tax authority;
    • ownership or long-term lease of a home;
    • employment contract or business;
    • children’s schooling;
    • local driving licence.
  • File a departure tax return. Residents leaving Ukraine for permanent residence abroad must file a property and income tax return no later than 60 calendar days before departure (paragraph 179.3 of the Tax Code of Ukraine, in Ukrainian). This is one of the few official steps that records the intention to change tax jurisdiction.
A court ruling “just in case” will not help
A common idea is to ask a court to establish the fact of losing residency.
 
In 2026, the Supreme Court of Ukraine twice confirmed that this route does not work.
  • In its ruling of 26 February 2026 in case No. 644/3563/25 (in Ukrainian), the Court agreed that establishing the fact of losing resident status cannot be considered in civil proceedings. Such facts are established in cases concerning taxation of income or customs violations. The Court relied on the position of the Grand Chamber of the Supreme Court in case No. 536/1039/17.
  • In its ruling of 12 May 2026 in case No. 757/50930/23-ц (in Ukrainian), the applicant had lived in London with his family for years, worked there and owned property. Nevertheless, the Court closed the proceedings: non-resident status cannot be established “in advance”. It can be proven only for a specific past period and only within a real dispute with the tax authority. A decision in such a dispute applies only to that period and does not extend to subsequent years.
A workable approach: a dispute with the tax authority
Since non-resident status is established only within a public-law dispute, such a dispute must be initiated correctly.
  1. Individual tax ruling. The person applies to the State Tax Service for a ruling under Articles 52–53 of the Tax Code of Ukraine. The request is supported by documents confirming the centre of vital interests in another state for a specific tax year. The question is framed as follows: do these documents show the absence of Ukrainian resident status for the given period.
  2. Challenging the ruling. An individual tax ruling is an individual act. If the State Tax Service merely refers to the Tax Code or treats the person as a resident, the ruling may be challenged in an administrative court. The claim seeks an order obliging the State Tax Service to issue a new ruling taking into account the court’s findings.
  3. Defence in an assessment dispute. If the State Tax Service assesses additional personal income tax or imposes penalties for failure to file a return or CFC reports, non-resident status is proven in the course of challenging the tax assessment notice.
 
None of these routes gives “permanent” status. The outcome concerns a specific period, so the supporting evidence should be maintained every year.
 
CRS and CFC rules: why the issue has become practical
The multilateral CRS agreement applies in Ukraine, with the first reporting period from 1 July to 31 December 2023. The State Tax Service automatically receives data on accounts held by Ukrainian residents in foreign financial institutions; as of 2026, from 83 jurisdictions. A foreign bank reports data to the state in which it considers the client resident.
 
A separate risk is the controlled foreign company rules. A Ukrainian resident who controls a foreign company must file CFC reports and may pay tax on its profit. A non-resident has no such obligation. The determination of status therefore directly affects the tax burden of owners of international businesses. More details are in the article on controlled foreign companies.
 
Our services
  • Analysing an individual’s tax status under subparagraph 14.1.213 of the Tax Code of Ukraine and the applicable double tax treaty.
  • Preparing an action plan and supporting documents to substantiate non-resident status, including closing the FOP and filing the departure tax return.
  • Preparing a request for an individual tax ruling and challenging it in an administrative court.
  • Representing clients in disputes with the State Tax Service over additional personal income tax and penalties for failure to file returns and CFC reports.
  • Advising CFC controlling persons on the consequences of changing tax residency.